RUTH MCNAMARA OF MY STAFF, AND MIKE ANASTASIO, OFFICE OF REGIONAL COUNSEL (ORC), HAVE RECOMMENDED THAT THE AGENCY ACCEPT THE OFFER, EMBODIED IN THE ATTACHED CONSENT AGREEMENT AND CONSENT ORDER (CACO), BY KOCH FERTILIZER AND STORAGE TERMINAL COMPANY, TO SETTLE THE CERCLA/EPCRA ADMINISTRATIVE COMPLAINT, DOCKET NO. 5-MM-98-005, ISSUED ON SEPTEMBER 30, 1998. UNDER THE PROPOSED SETTLEMENT, KOCH FERTILIZER AND STORAGE TERMINAL COMPANY WOULD PERFORM THE FOLLOWING: (1) PAY A CIVIL PENALTY OF $22,330 - $5,583 TO SUPERFUND AND $16,747 TO THE U.S. TREASURY; AND (2) PERFORM 3 SUPPLEMENTAL ENVIRONMENTAL PROJECTS (SEP), TWO INVOLVING POLLUTION PRE- VENTION PROJECTS AND ONE INVOLVING AN EMERGENCY PLANNING AND PREPAREDNESS PROJECT, A COST TOTALING $130,000. THUS, THE TOTAL NET VALUE OF THE PROPOSED SETTLEMENT IS $152,330. THE ORIGINAL PENALTY PROPOSED IN THE COMPLAINT WAS $190,969. HOWEVER, NEW INFORMATION SUBMITTED BY KOCH AFTER THE COM- PLAINT WAS ISSUED, INDICATING A SUBSTANTIAL LITIGATION RISK, AS WELL AS GOOD FAITH AND COOPERATION EXHIBITED BY KOCH, SUPPORT THE PROPOSED SETTLEMENT AS VERY FAVORABLE TO U.S. EPA AND THE PUBLIC. ACCORDINGLY, I AGREE WITH THIS SETTLEMENT ARRANGEMENT, AND, THEREFORE, RESPECTFULLY RE- COMMEND THAT YOU SIGN THE ATTACHED CONSENT AGREEMENT AND CONSENT ORDER (CACO).