LEGAL LIABILITY FRAMEWORK Liability for environmental cleanup of contaminated properties under both CERCLA or MTCA fa

1. LEGAL LIABILITY FRAMEWORK  Liability for environmental cleanup of contaminated properties under both CERCLA or MTCA falls on: 1. Current owners and operators without regard to fault; 2. Prior owners or operators but only if they owned or operated the site during the disposal or release of hazardous substances; 3. Transporters of hazardous substances who transport to a disposal facility; 4. Arrangers of transportation to a disposal facility; and 5. Generators of hazardous waste (MTCA only) In addition, depending on the circumstances, environmental liabilities may be imposed through common law claims such as nuisance, trespass and negligence. Parties are free to contractually allocate environmental liabilities in whatever way they wish. However:

2. In addition, depending on the circumstances, environmental liabilities may be imposed through common law claims such as nuisance, trespass and negligence. Parties are free to contractually allocate environmental liabilities in whatever way they wish. However: 1. Contractual allocations are only binding on the parties to the contract and do not affect the rights or claims of third parties or regulatory agencies; and 2. A contractual allocation is only as strong as the financial position of the party responsible.

3. CLEANUP PROCESS OPTIONS 1.“Do It Yourself” – Independent Remedial Actions. See, e.g. WAC 173-340-300. 2.Voluntary cleanup program (“VCP”). Generally applicable to “simple” sites. NFA letter. 3.Agreed Orders and Orders on Consent. Ecology or EPA agrees not to take further action if you are complying with the Order, but no other protections. 4.Consent Decree. Covenant not to sue and third party protections.