January 24, 2002

Dear Mr. Montbleau and Mr. Poulin:

Thank you and the members of your organization (Janice Terzakis, Ellen Noujaim, Peter Korsianos and Dave Levine) for taking the time to meet on Tuesday afternoon in our Peabody District Office with my District Director Gary Barrett and me. As you know, I continue to be interested in working with you and all of the affected parties to seek some resolution to the serious consequences being experienced as a result of liability accruing from the Beede facility in Plaistow, New Hampshire.

When the Superfund statute was enacted in 1980, it seems that legislators made the conscious decision to place responsibility for clean-up costs upon the companies or other entities that contributed oil to a subsequent bankrupt facility. The determination was apparently made not to spread that responsibility over the larger base of general taxpayers; our office staff will research Congressional records to determine the underlying rationale for that decision. Regardless, we need to address both the long and short-term implications of the current situation.

In the long term, some action will be necessary to prevent small business owners from remaining continually exposed to a potential repeat of the present situation. As expressed by your members, having now experienced the misfortune of liability when a "bad actor" facility goes bankrupt, station owners (who conduct their own business in accordance with the law) will - unless some action is taken - continue to wonder when the "other shoe might drop" as future possible "bad actors" are identified. Ultimately, some consideration needs to be given to amending the law to either distribute responsibility for clean up and liability differently, over a broader base, or to provide some form of affordable insurance (and guarantee that insurance companies or some insurer will make coverage available in a reasonable fashion).

We also intend to inquire as to whether or not the Environmental Protection Agency (EPA) bears any responsibility for contributing to the creation or exacerbation of the Beede facility hazard by reason of a failure to perform any monitoring responsibilities it may have had. If there were an EPA failure, it must then be determined whether a prevailing argument can be presented that might succeed in ameliorating some of the financial burden being placed on small businesses as the result of the assessment for clean up costs.

In the short term, I know that you are encouraging your members and others to examine insurance policies to see whether or not coverage might exist for at least a portion of the time involved. We have also recommended that you explore with knowledgeable law firms the prospects of pursuing Beede's insurer and reinsurer for any possible recovery that might be available. Our office will also contact the EPA to determine how they will be making their assessments and whether or not there is any flexibility in those determinations and in the methods and time by which any possible assessments/settlement payments must be made. Our office will also contact other government agencies to see whether low interest loans or other assistance might be available for small businesses finding themselves in this situation.

Lastly, I intend to invite other New England Members of Congress to meet with me and the EPA to impress upon them the seriousness of the current situation and to express our desire to find relief for our constituents. It is hoped that the EPA will be pressed to work with us to find possible solutions to the current situation.

I look forward to working with you as matters progress and thank you for offering to keep us informed of any interim developments. We will do the same with respect to concerned parties by communicating with you. Again, thanks for your efforts.