LINDEN-ROSELLE SEWERAGE AUTH

DOC 01 OF 01

CONSENT DECREE

02-90-C021

MPRSA

MUNI

19900815

19900815

NJD000729822

LINDEN ROSELLE SEWERAGE AUTHOR

LINDEN,NJ

89-3341

02

CONSENT DECREE, UNITED STATES OF AMERICA AND STATE OF NEW JERSEY V. LINDEN ROSELLE SEWERAGE AUTHORITY. ++EP++ 1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA,

and

STATE OF NEW JERSEY,

Plaintiffs, v.

LINDEN ROSELLE SEWERAGE

AUTHORITY,

Defendants.

WHEREAS, the United States and the Environmental Protection Agency ("EPA"). the State of New Jersey ("the State"), on behalf of the New Jersey Department of Environmental Protection ("NJDEP") and the Linden Roselle Sewerage Authority ("the LRSA" or "the Defendant") enter into this Consent Decree to ensure the phasing out and termination of ocean dumping and the transportation for the purpose of ocean dumping, of sewage sludge pursuant to the Ocean Dumping Ban Act of 1988 ("the Ban Act"), P.L. 100-688; and

WHEREAS, the New Jersey Ocean Sludge Dumping Elimination Act, L. 1988, C.57 supplementing the New Jersey Water Pollution Control Act, N.J.S.A. 58 10A-1 et seq. ("the New Jersey Ban Act") requires that ocean dumping of sludge by New Jersey municipal treatment works be terminated by March 17, 1991; and ++EP++

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WHEREAS, the United States, EPA, the State and the Defendant have each consented to the making and entering of this Consent Decree, without trial or adjudication of any issue of fact or law and without this Decree constituting any admission by any party with respect to any such issues, and the Court having considered the matter and being duly advised, and it being in the public interest, it is hereby ORDERED and DECREED as follows:

JURISDICTION

I. This Court has jurisdiction over the subject matter and over the parties hereto under 28 U.S.C. Section 1345, and 33 U.S.C. Section 1415. This Court finds that it has jurisdiction and that Plaintiffs' complaint states a claim upon which relief may be granted.

APPLICATION AND BINDING EFFECT

II. The provisions of this Consent Decree ("Decree") shall apply to and be binding upon all parties to this Decree, their officers, directors, agents, servants, employees, successors, assigns, contractors, and all persons, firms and corporations in active concert or participation with them. Prior to any transfer of ownership or operation of the Defendant's publicly owned treatment works, the Defendant shall give written notice of this Decree to any successor(s) in interest and shall simultaneously notify, in writing, EPA and the State that such notice has been given to each successor in interest. ++EP++

Page 3 PHASE OUT OF OCEAN DUMPING

III. The Defendant shall cease ocean dumping of sewage sludge by March 17, 1991. Until cessation of ocean dumping and final implementation of the alternative system of sewage sludge management, the Defendant shall comply with all requirements of this Decree and of any final ocean dumping permit that may be issued under the Marine Protection, Research, and Sanctuaries Act of 1972, as amended, 33 U.S.C. 1401 et seq. ("MPRSA" or "the ACT"). No ocean dumping or transportation for the purpose of ocean dumping of sewage sludge shall be conducted after August 14, 1989, unless prior to such activity the Defendant has obtained a new, effective, final ocean dumping permit under Section 102 of the MPRSA, 33 U.S.C. 1412. Defendant shall comply with all terms and conditions of any final permit issued pursuant to the MPRSA during the pendency of this Decree. In the event that any part of the final permit is challenged or stayed, the Defendant shall comply with all terms and conditions of the draft final permit, attached hereto and incorporated herein as Attachment A, during the pendency of such challenge. In any permit enforcement proceeding Defendant reserves all defenses available to it at law, other than defenses relating to the lawfulness of the permit and of its terms and conditions. Should ocean dumping continue under this Decree beyond the effective term of the permit, and no new permit be issued, the terms and conditions of the most recent permit issued to the Defendant after May 31, 1989, shall continue to be complied with as conditions of this Decree. ++EP++

Page 4 IV. SCHEDULES FOR IMPLEMENTATION OF AN ALTERNATATE SYSTEM

IV.A. The LRSA shall implement the following plan for an alternate system for the management and disposal of sewage sludge transported or dumped by the LRSA: dewatering of its sewage sludge followed by either incineration at an existing facility or landfilling as an interim measure and incineration as a long term alternative.

IV.B. In implementing its plan for an alternative system of sewage sludge manangement and disposal, LRSA shall comply with the following schedule:

1. Completion of detailed sludge management plan and submittal of completed plan to NJDEP for selected alternative system by April 30, 1989.

2. Receive determination from NJDEP for the selected alternative system identified in the sludge management plan by July 15, 1989.

3.* Submission of complete air permit application by July 1, 1990.

((/*/ The State will determine within 30 days of a permit application, whether a permit application is satisfactory for purposes of determining compliance with the milestone set forth in paragraph IV of this Decree. Notwithstanding the fact that the permit application was satisfactory at the time it was submitted, the State reserves the right to require additional information while reviewing the permit application in order to develop a draft determination on the permit or a draft permit with appropriate extensions to subsequent milestones being made in accordance with paragraph X of this Decree, where defendant's application was satisfactory.))

4. Advertise or solicit proposals for preparation of final engineering designs and related specifications for the selected alternative system by March 1, 1990.

5. Award final engineering design contract by September 1, 1990.

6. Receive draft determination on air permit from NJDEP by January 1, 1991 and final determination by June 1, 1991.

7. Completion of final engineering design and contract documents by January 1, 1992.

8. Submit application for TWA Stage II to NJDEP for the selected alternative by January 1, 1992. ++EP++

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9. Receive determination on TWA Stage II from NJDEP by April 1, 1992.

10. Advertise for bid all construction contracts by July 1, 1992.

11. Award all construction contracts by November 15, 1992.

12. Commence On-Site Construction by December 1, 1992.

13. Establishment of local pretreatment limits as necessary for alternative system by January 1, 1993.

14. Achieve compliance with all sludge quality criteria requirements for the selected long term sludge management alternative by February 15, 1995.

15. Initiate start-up/shakedown activities by February 15, 1995.

16. Substantially complete all construction related activities necessary for operation by April 15, 1995.

17. Complete testing and commence full operation by January 1, 1996.

IV.C. The LSRA shall implement interim measures in accordance with the following schedules to ensure that LRSA ceases ocean disposal of sewage sludge by March 17, 1991.

1. Initiate negotiations with Stony Brook Regional Sewerage Authority ("SBRSA") on Interim Disposal Plan by April 1, 1989.

2. Award engineering contract for dewatering facilities shakedown by June 1, 1989. ++EP++

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3. Execute primary interim sludge disposal contract with SBRSA by November 30, 1989.

4. Conclude preliminary dewartering assessment and if necessary commence modifications/replacements of existing facilities by December 31, 1989.

5. Establish of local pretreatment limits as necessary for interim plan by March 28, 1990.

6. Secure contracts for a contingent interim management method for use if the primary interim management method becomes available by December 31, 1990.

7. Complete all modifications necessary for operation, including shakedown, and initiate operation of sludge dewatering facilities and cease ocean disposal by March 17, 1991.

8. Achieve compliance with all sludge quality criteria requirements for the interim plan by March 17, 1991.

V. REPORTS AND CERTIFICATIONS

A. Beginning with the second calendar month after entry of this

Decree, and continuing monthly thereafter until Defendant ceases ocean disposal of sewage sludge, the Defendant shall submit in writing to EPA and the State a report and certification detailing the status and progress of the interim measures under paragraph IV for phasing out and terminating ocean dumping of sewage sludge and for implementing its interim system of land based sludge management.

B. Commencing with the second calendar month after entry of this

Decree, the Defendant shall submit quarterly reports and certifications concerning its progress in implementing its long term alternative land-based system of sludge management.

C. The reports required by this paragraph shall include a

description of the work performed in the previous period and a projection of the work to be performed during the following twelve month period pursuant to this Decree. ++EP++

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The duly authorized representative ("representative ") is the person with knowledge and authority to make the reports and to certify as to their accuracy as follows. The representative shall certify in the form for certifications of Discharge Monitoring Reports under the Clean Water Act, as set out at 40 C.F.R. 122.22(d), that the Defendant has met all schedule milestones in the prior period, and that the Defendant continues to be on schedule to meet all schedule milestones as set forth in paragraph IV of this Decree. Where the representative is unable to certify compliance, he or she shall identify the noncompliance, the reasons for such noncompliance, and the measures being taken to remedy the noncompliance. The Defendant shall submit such reports and certifications of compliance by certified mail, return receipt requested within 15 days of the end of the reporting period. Reports and certifications indicating that the Defendant is not in compliance with the Decree shall also be submitted by either telefax or express mail.

D. Within 15 days of each milestone date specified in the

schedules in paragraph IV, the Defendant shall submit in writing to EPA and the State a report setting forth in detail whether or not the Defendant has complied in full with the requirement and if not, the work remaining to be done to achieve full compliance and a schedule for completion of such work. If a schedule milestone date is not met, the representative shall state what impact, if any, there will be on compliance with the final schedule dates in paragraph IV, and subsequently prepare and submit an acceleration plan to ensure that schedule dates in paragraph IV will be complied with to the extent possible. ++EP++

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Defendant may incorporate this information in monthly or quarterly reports required by subparagraph A of this paragraph, provided that the Defendants does so within 31 days of a milestone if the milestone is timely achieved or within 15 days of a milestone if such milestone is not met.

E. The EPA and the State shall confer quarterly to evaluate the

compliance of the Defendant with the schedules established in paragraph IV above. Upon 15 days notice from either EPA or the State, the Defendant shall provide a properly informed and authorized representative for such conference to discuss progress and problems in the planning, design and construction of the alternative systems for sludge management and the interim measures needed to eliminate the ocean disposal of sewage sludge.

F. The Defendant shall submit to EPA and the State a quarterly

report detailing the following: (1) the volume of sludge disposed of in the ocean during the preceding quarter; (2) the dollar amounts pursuant to paragraph VIII of this Decree for the volume of sludge disposed of in the ocean; (3) the date and amounts of payments made in accordance with paragraph VIII of this Decree by Defendant; and (4) verification of payment and sufficient documentation of payments by defendant's auditors (including documentation that appropriate payments were made) for all payments due in the reporting period. ++EP++

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This report shall be submitted by the fifteenth day of the second month following the end of the calendar quarter. The first report shall be submitted by November 15, 1989.

G. The Governor of the State shall submit to the Administrator

of EPA on September 30 of each year, commencing with 1989, a progress report as required by Section 104B(h) of the MPRSA, 33 U.S.C. 1414(h). Failure to submit such a report shall result in a withholding of funds from the State pursuant to Section 104B(h) (2) of the MPRSA, 33 U.S.C. 141b(h) (2).

VI. PROGRAM OVERSIGHT BY DEFENDANT

A. Within 30 days of the date of entry of this Decree the

Defendant shall designate a duly authorized representative whose responsibility shall be to oversee the Defendant's program for construction of the interim and alternative sludge management facilities and to file the reports required by this Decree.

B. Such representative shall have, at a minimum, the following

responsibilities:

(1) facilitating the coordination of the Defendant's

activities among its various departments and agencies in order to expedite and facilitate compliance with the terms of this Decree;

(2) attending quarterly progress meetings (as described in

paragraph V.E. above) among the parties or designating an acceptable representative to do so; and ++EP++

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(3) timely filing all reports required by this Decree.

VII. STIPULATED PENALTIES

The amounts set forth herein shall be the stipulated civil

penalties under the Act and the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for the following specifically enumerated violations of paragraphs IV and V.

A. If the Defendant fails to comply with the specified deadlines

and requirements of paragraph IV of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each

and every violation of said requirements: Days of Penalty Non-compliance Violation or violation Per Day 1-30 $ 2,000 31-60 $ 5,000 Beyond 60 days $10,000 Payments shall commence within thirty days of demand and shall become due and payable monthly thereafter.

B. If the Defendant fails to comply with any applicable

requirements of paragraph V of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and

every violation of said requirements: Days of Penalty Noncompliance Violation or Violation Per Day 1-30 $100 31-60 $200 Beyond 60 Days $500 ++EP++ Page 11

Payments shall commence not later than thirty days from the date of the violation and shall become due and payable monthly thereafter.

C. The stipulated penalties set forth in subparagraphs A and B

above shall begin to accrue on the day that performance is due or the non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance. Each separate violation of this Decree shall constitute a separate penalty event, and nothing herein shall prevent the simultaneous accrual of separate penalties for separate violations of this Decree. In the event that stipulated penalties are payable to the Plaintiffs under this Decree and subject to subparagraph D and E, herein, fifty (50) percent of such penalty shall be paid to the United States and fifity (50) percent of such penalty shall be paid to the State. Penalties due to United States shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the United States," to the United States Attorney for the District of New Jersry with a copy to EPA and to New Jersey DEP. Penalties due to the State shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the State of New Jersey," to the New Jersey Department of Environmental Protection, Bureau of Revenue, CN 402, Trenton, New Jersey 08625 with a copy to EPA. ++EP++

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Interest shall accrue on any stipulated penalty not paid due to the rate established by the Department of the Treasury under 31 U.S.C. Section 3717.

D. 1. Stipulated penalties for failure to meet milestone events

for its interim measures (schedule elements IV.C.) shall be forgiven if the Defendant ceases ocean disposal of all of its sewage sludge by March 17, 1991, provided that Defendant has paid in the time frames provided for herein, all amounts demanded for alleged violations of those provisions of the Decree into an escrow account acceptable to the Court and to the Plaintiffs. If the Defendant for any reason fails to pay into escrow any amounts demanded, either pending adjudication of the claimed noncompliance or pending its ceasing of ocean disposal on or before March 17, 1991, this forgiveness provision shall be of no effect and such stipulated penalties as are due and owing because of Defendant's failure to meet an earlier milestone event shall be paid to the Plaintiffs. The interest earned on stipulated penalties paid into escrow shall be paid over to whichever party is entitled to the principal.

2. Except for stipulated penalties resulting from Defendant's

failure to comply with the milestone event set forth in paragraph IV.B.11, any stipulated penalties incurred by Defendant for failure to achieve any other milestone date in the schedules set forth in paragraph IV.B shall be forgiven upon the Defendant's timely achievement of the next subsequent milestone date in that schedule, provided that the conditions of this paragraph are met.++EP++

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Such stipulated penalties shall be paid within thirty days of demand by EPA or the State by tendering a check in the appropriate sum to the agent of an escrow account to be established by the Defendant. If Defendant thereafter demonstrates compliance with the next subsequent milestone event set forth in the schedule, then all stipulated penalties paid and held in escrow for violation of the preceding missed milestone event shall be returned to the Defendant. If, however, the Defendant fails to comply with the next subsequent milestone event set forth in the schedule, then the escrow agent shall pay such amounts of the escrow account for that schedule, including all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph. Nothing contained herein shall relieve the Defendant of any obligation to pay any stipulated penalties hereunder that the Defendant fails to pay into the escrow account or which the escrow agent fails to pay to the United States and the State.

E. In the event that Defendant claims that a Force Majeure

event, as defined in paragraph XI of this Decree has occurred such that no stipulated penalty is due for a missed milestone date, Defendant shall pay the stipulated penalty into an escrow account and such payment shall be held by the escrow agent pending resolution of the Defendant's claim of Force Majeure pursuant to paragraphs XI and XII. If it is determined that no stipulated penalty is due, then all stipulated penalties paid and held in escrow for the violation of the milestone dates at issue shall be returned to the Defendant promptly. ++EP++

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If, however, it is determined that the stipulated penalty is due because the delay was not caused by a Force Majeure event, then the escrow agent shall pay such amounts of the principal and interest that are not entitled to further escrow pursuant to subparagraph D, herein, and all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph.

F. In addition to the stipulated penalties set forth above and

the fees and other statutory assessments established by the Ban Act: (1) the civil penalties and other relief provided by the MPRSA at 33 U.S.C. Section 1415 for violations of the Act for which stipulated penalties are not provided for herein, for violations of regulations issued thereunder, for violations of permits issued thereunder, and for violations of this Decree for which stipulated penalties are not provided for herein, shall apply and remain in effect; and (2) the civil penalties and civil administrative penalties and other relief provided by the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for violations of the Acts, for violations of regulations promulgated pursuant thereto, and for violations of permits issued pursuant thereto, for which stipulated penalties are not provided for herein, shall apply and remain in effect. ++EP++

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Notwithstanding any other provision of this Decree, New Jersey specifically reserves the righ to seek injunctive relief and the maximum penalties pursuant to the New Jersey Water Pollution Control Act, including the New Jersey Ban Act for failure to cease ocean dumping of sewage sludge by March 17, 1991.

G. In the event of failure to pay stipulated penalties, as set

out above, this matter may be referred to the United States Attorney and the State Attorney General for collection. Defendant shall be liable for plaintiffs' post-demand expenses, including attorney's fees, in such collection action.

VIII. STATUTORY ASSESSMENTS AND ESCROW REQUIREMENTS

A. In satisfaction of Defendant's obligations under 33 U.S.C.

1414b (b) (1) and 1414b (d) (1), the Defendant shall pay the amounts set forth herein for each day for the sewage sludge it disposes of in the ocean. Such payments are separate and apart from any penalties the Defendant may be liable for under paragraph VII. The quanity of dry tons shall be based upon the monthly average of percent solids for the sludge transported for the purpose of ocean disposal or disposed of in the ocean. Penalties for disposing of sewage sludge or transporting sewage sludge for the purpose of disposing of it in the ocean shall be calculated for any such disposal after December 31, 1991, as set out in Section 1414b (d) (1) of the MPRSA. Such penalties are mandatory and independent of any civil penalties assessed or collected pursuant to Section 105 of the MPRSA and of any stipulated penalties assessed or collected pursuant to this Decree. ++EP++

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For the purpose of determining the applicable per-dry-ton fee or

penalty, the date and time of intitiation of transportation for the purpose of ocean disposal, to be reported as the time of loading sludge onto a barge (as required by condition 30.b of the final permit), shall be used.

B. Payments of amounts assessed under paragraph VIII shall be

made no later than on a quarterly basis, on the last day of the month following the end of a calendar quarter, if necessary should previous cumulative expenditures from the trust account described in C, below, be less than amounts due. The first payment, for sewage sludge dumped or for dumping initiated during the calendar quarter ending September 30, 1989 shall be made by October 31, 1989. For the purpose of determining the calendar quarter in which sludge was dumped, the date and time of initiation of transportation for the purpose of ocean disposal as the time of loading of sludge onto a barge (to be reported as required by condition 30.b. of the draft final permit) shall be used.

C. The Defendant shall maintain a trust account, as approved by

EPA, pursuant to 33 U.S.C. 1414b(e) in the form attached to this Decree for the payment and use of that portion of the statutory assessments and penalties established by the Ban Act that are to be deposited in this trust account. Nothing herein is intended to preclude defendants from utilizing funds raised for facilities to enable them to cease ocean disposal of sewage sludge to satisfy their escrow obligations under this Decree. ++EP++

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D. Defendant shall pay fees and penalties in accordance with 33

U.S.C. Section Section 1414b(b) (2) (c) and 1414(d) (2) (c) (i) into the Clean Oceans Fund established under 33 U.S.C. 1414b(c) (5) and the Water Pollution Control Revolving Fund established under Title VI of the Federal Water Pollution Control Act. In the event that the State has not estasblished a Clean Oceans Fund or water pollution control revolving fund by February 28, 1990, fees and penalties required to be paid to the Clean Oceans Fund or revolving fund by Defendant shall be paid to EPA pursuant to 33 U.S.C. 1414b(b) (5).

E. In satisfaction of Defendant's obligations under 33 U.S.C.

Sections 1414b(b) (2) and 1414b(d) (2), the following amounts shall be paid by Defendant as set forth below to the following recipients for each dry ton of sewage sludge dumped in the ocean:

Payments Per Dry Ton Dumped

Recipients

State Water

Year in Clean Pollution Which Sludge Trust Oceans Control Re- Was Dumped EPA Account Fund 1 volving Fund 1 1989 $15.00 $ 85.00 1990 15.00 127.50 $3.75 $3.75 1991 15.00 170.00 7.50 7.50

((/1/ If established; if not established, to EPA pursuant to paragraph VIII.D.)) ++EP++

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After December 31, 1991, payment and distribution of penalties shall be computed and paid in accordance with 33 U.S.C. 1414b(d) (2).

F. Amounts paid to EPA under paragraph VIII.E shall be paid by a

check made payable to the "Treasurer of the United States," and delivered by certified mail, return receipt requested, to EPA. Statutory assessments paid to the Clean Oceans Fund, state water pollution control revolving fund, or State shall be paid a check made payable to the Treasurer, State of New Jersey, and delivered by certified mail, return receipt requested, to the State. Amounts paid into the trust account shall be paid by a check made payable to the trustee for said account. Whenever any payment is due under this Decree, if such payment is not received on or before the day on which payment is to be made pursuant to paragraph VIII.B., interest on the amount due will be assessed without further demand against Defendant at the annual rate established by the Secretary of the Treasury pursuant to 31 U.S.C. Section 3717, on the overdue amount from the day on which it was due through the date of payment. Failure to pay the amounts in full according to the above provisions will result in referral of this matter to the United States Attorney and the State Attorney General for collection. Interest on late payments shall be paid to EPA for untimely payments to EPA or the Defendant's trust account and to the State for untimely payments to it or to its revolving fund or Clean Oceans Fund. ++EP++

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Interest on late payments shall be deposited in the U.S. Treasury or State Treasury as appropriate as general funds. Defendant shall be liable for Plaintiffs' necessary and reasonable expenses, including attorneys' fees, in such collection action.

G. In the event of Defendant's failure to make full payment to

the trust account in accordance with paragraph VIII of this Decree within thirty days of the date on which it was due or Defendant's failure to use amounts withdrawn or received from the account in accordance with 33 U.S.C. 1414b(e) and this Decree, EPA shall provide notice to the Defendant and an opportunity for informal dispute resolution. If, thereafter, EPA finds that such a failure has occurred, it may direct the trustee of the trust account to pay the balance of the amounts in the trust account to the State for use in accordance with 33 U.S.C. 1414b(e) (2) (C). Pending final resolution of any district court challenge, the trustee shall continue to hold the funds in the trust account.

H. Amounts paid to the trust account, the State, the Clean

Oceans Fund, or the state water pollution control revolving fund shall be used subject to the restrictions of 33 U.S.C. Section Section 1414b(c) (5), (e) and (f). The Defendant shall conduct audits on an annual basis to establish that such statutory assessments and penalties were properly deposited and paid out. The Defendant shall utilize the services of an auditor to conduct separate audits, on an annual basis of Defendant's expenditures from the trust account and from funds provided to it from the Clean Oceans Fund, to demonstrate compliance with 33 U.S.C. 1414b(c) (5) and (e). ++EP++

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Costs incurred by the Defendant pursuant to this Decree and paid from the trust account and from funds provided to Defendant from the Clean Oceans Fund shall be necessary and reasonable, and allocable to the projects allowed by 33 U.S.C. 1414b(c) (5) and (e). The Defendant may look to the applicable cost principles of OMB Circular A-87 (46 Federal Register 9548 (1981)) for guidance in determining allowable costs. Such audit reports required of the Defendant shall be submitted to EPA and the State within 90 days after the end of each calendar year.

I. The Defendant shall submit to the EPA and the State, a scope

of work for each project for which it expects to seek to withdraw funds from the trust account in the following six-month period, The first report shall be due by August 30, 1989 and shall cover the period from August 15, 1989 through December 31, 1989. Subsequent submissions shall be due 60 days prior to commencement of the next six-month period (e.q., October 30, 1989, for the period of January 1 through June 30, 1990). Each scope of work will consist of a description of the major activities to be funded in each project, the required level of funding for each such activity and a cumulative six-month payment schedule based upon projected costs to be incurred.

J. EPA will approve or disapprove the projected work and

estimated costs for the major activities for the following six month period and will notify the trustee of the trust account and the State of EPA's approval or disapproval of the projected work and estimated cost and will provide the trustee with a list of the approved activities, funding levels and associated payment schedule. ++EP++

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If EPA fails to act on the Defendant's proposed scope of work and payment schedule within 60 days of its receipt, the Defendant may submit the scope of work and payment schedule to the Trustee together with a certification that EPA has failed to disapprove use of the trust account as required in 33 U.S.C. 1414b(e) (2) (A).

K. The Defendant may request funds from the Trustee for

immediate cash disbursements based upon the approved payment schedule costs incurred. The Trustee will authorize the expenditure of funds in accordance with the scope of work and approved payment schedule. If the Defendant anticipates that funding for the authorized activities will exceed the amounts in the approved scope of work, the Defendant may seek approval for the release from its trust account from EPA for such additional needs.

L. This Decree specifies only the minimum amounts that must be

placed in the trust account. Nothing in this Decree is intended to prevent the Defendant from depositing into the trust account, as a matter of administrative convenience, sums greater than those specified herein, or to preclude them from depositing additional amounts for any lawful purpose, provided that the minimum amounts required to be in such account are at all times present. Notwithstanding the fact that the Defendant may have deposited in the Trust Fund sums greater than the statutorily prescribed amounts, for its convenience or for any other good reason, the Plaintiffs' interest in the Trust Fund is limited to the amounts established by the Ban Act and as set out herein. ++EP++

Page 22 IX. NOTIFICATIONS

A. Except as specified otherwise, when written notification to

or communication with the United States or the State is required by the terms of this Decree or when payment of a statutory assessment or penalty is to be made, it shall be sent by certified mail, return receipt requested, and addressed as follows:

As to the United States of America:

United States Attorney's Office

Federal Building

970 Broad Street

Newark, New Jersey 07102

United States Department of Justice

Land and Natural Resources Division

10th & Constitution Ave., N.W.

Washington, D.C. 20530

Attn: Chief, Environmental Enforcement Section

As to the Environmental Protection Agency:

U.S. Environmental Protection Agrncy

Region II

Office of Regional Counsel

26 Federal Plaza

New York, New York 10278

U.S. Environmental Protection Agency

Financial Management Branch, Policy and

Management Division ++EP++

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U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

Water Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

As to State:

Chief, Environmental Protection Section

Division of Law

CN 112

Hughes Justice Complex

Trenton, New Jersey 08625

Director

Division of Water Resources

Department of Environmental Protection

CN 029

401 E. State Street

Trenton, New Jersey 08625

As to Defendant:

Gary G. Fare

Executive Director

Linden-Roselle Sewerage Authority

P.O. Box 4118

Linden, New Jersey 07036

Notifications to or communications with the United States, EPA or the State shall be deemed submitted on the date they are telefaxed or postmarked and sent by certified mail, return receipt requested, whichever occurs later.

B. Reports required to be submitted pursuant to paragraph V

shall be signed by the responsible official of the Defendant designated pursuant to paragraph VI and shall include a cerification under penalty of law that the responsible official is in a position to know the facts contained in the report, has made sufficient inquiry to determine the accuracy of the information contained in the submission and that he or she certifies that to the best of his knowledge the information contained in or accompanying the submission is true, accurate and complete. (See 40 C.F.R. 122.22 for form of certification.) ++EP++

Page 24 X. MODIFICATIONS

Except as provided for herein, there shall be no modification

of this Decree without written approval of all of the parties to this Decree, subject to the approval of the Court, or Order of the Court. Nothing herein shall be construed to limit any party's rights pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.

XI. FORCE MAJEURE

A. A Force Majeure event is any event that is beyond the

control and without the fault of the Defendants and/or its contractors and which causes a delay in implementing any of the measures required by this Decree. Such Force Majeure events may be occasioned by, among other things, Act of God; contractor or supplier default; failure of a federal or state regulatory agency to issue any necessary permit or approval in a timely fashion (where, in accordance with all applicable laws and regulations, the Defendant timely submitted an application, has done all it can do to ensure that such application is complete, has provided all necessary supporting information and is otherwise entitled to such permit or approval); inability to secure responsible bids; or a judicial injunction (where such injunction is issued by a court of competent jurisdiction directed against work actually being performed in furtherance of construction of sludge treatment and disposal facilities and provided that the Defendant has exercised due diligence and best efforts in seeking removal to this court and in resisting such injunction, including appeals, and further provided that the Defendant has acted in accordance with applicable statutes and regulations). If a Force Majeure event occurs, Defendant shall be entitled to a modification of the schedule milestones to the extent that such event was beyond the control of the Defendant. The Defendant bears the burden of establishing that the event was beyond its control and of demonstrating the amount of delay that is necessary because of the Force Majeure event. As a condition precedent to obtaining any relief under this provision, Defendant shall notify the Court and all the parties in writing that a Force Majeure event has occurred, no later than 90 days after the date Defendant knew or should have known of the occurrence of any Force Majeure event.

B. The notice to EPA and the State, required above, shall

include, to the extent such information is available at the time of such notification:

1. The anticipated length of time of the delay; 2. The cause of the Force Majeure event; 3. Measures taken to minimize the delay including a time

table for implementation of any such measures; ++EP++

Page 26 4. Proposed date by which subsequent schedule milestones

will be achieved; and

5. Activities that can be taken to minimize the impact of

the Force Majeure event on the overall schedule.

C. If all the parties agree that a failure to comply with any

requirement of this Decree, including a schedule milestone in paragraph IV, was caused by a force majeure event, the parties shall seek an amendment to this Decree containing such proposed modifications, including revised schedule milestones as may be necessary, and no stipulated penalties shall be incurred. If the parties agree that an extension is necessary, the schedule of milestone dates under paragraph IV shall be extended for the period of time caused by the Force Majeure event. However, it is the State's intention to oppose any extension of the disposal of sludge beyond March 16, 1991 because it is the State's position that it has no authority to extend the statutorily imposed deadline. In the event that revision of the schedule milestones is necessary, the Defendant agrees to make every effort to ensure that the milestone events set forth in paragraph IV are not extended.

D. If the parties cannot agree that a failure to achieve

milestone dates was beyond the control of the Defendant, the Defendant may, within 90 days following the missed milestone event, apply to the Court for a determination as to whether all or part of the delay was excusable due to a Force Majeure event. ++EP++

Page 27

E. If, for any reason, the Defendant fails to achieve any

schedule milestone established in paragraph IV and the parties cannot agree that the remainder of the schedule milestones will be affected, or how they will be affected, then the Defendant may, within 90 days following the missed schedule milestone, petition the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule milestones as established in paragraph IV. Whenever a milestone is missed, the Defendant shall exercise its best efforts to recoup all lost time, including, where appropriate, the payment of additional costs for overtime, double shifts or additional contractors or consultants.

XII. DISPUTE RESOLUTION

A. Any dispute between two or more parties to this Decree

which arises under this Decree shall in the first instance be the subject of informal negotiations between the parties to the dispute for a period of up to twenty (20) days from the time notice of the dispute is given. Both the EPA and the State shall be considered parties to any dispute. The period for negotiations may be extended by agreement of the parties to the dispute.

B. In the event that the parties cannot resolve the dispute

by informal negotiations under the preceding paragraph, then the position advanced by EPA and the State, after consultation, will be considered binding unless, within fifteen (15) days after the end of the informal negotiations period, the Defendant files a petition with this Court setting forth the matter in dispute, the efforts of the parties to resolve it, and the relief requested which may include a request that a master be appointed by the court. ++EP++

Page 28

Any party to the dispute may present a disputed matter to the Court before the end of the negotiations period if the matter concerns stipulated penalties or otherwise requires early resolution. The dispute resolution procedures of this paragraph shall be the exclusive mechanism to resolve disputes arising under this Decree and in connection with the draft final permit incorporated herein.

If, for any reason, the Defendant fails to achieve any

milestone date(s) established in paragraph IV and the parties cannot agree that the remainder of the schedule will be affected, or how it will be affected, and the Defendant petitions the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule for such project as established in this Decree, in the interim the Defendant shall exercise its best efforts to recoup all lost time. In any proceeding convened under this paragraph, the Defendant shall bear the burden of proof to demonstrate that a change in the schedule is required. The Court shall determine whether and to what extent future milestones will be affected and, if the Court so finds, shall direct that appropriate schedules be submitted. Prior to the recommendation of any schedule further extending the end dates for completion of the tasks enumerated in paragraph IV, the Defendant shall demonstrate to the Court that alternative methods to recoup time lost in the delays have been explored and that no practicable means exist to do so. ++EP++

Page 29

C. The filing of a petition asking the Court to resolve a

dispute shall not of itself extend or postpone any obligation of the Defendant under this Decree, provided further that nothing herein shall prevent an affected party from applying to the Court, upon notice to all parties, for a stay of relief authorized or directed by this Decree.

D. In proceedings on any dispute regarding a delay in

performance or other noncompliance, the Defendant shall have the burdens of proving (1) that the delay or other noncompliance is or was caused by circumstances beyond the Defendant's control and without fault of the Defendant, and (2) that the amount of any additional time requested is necessary to compensate for such circumstances.

XIII. COMPLIANCE WITH OTHER LAWS

A. Except as otherwise provided in this Decree, the Defendant

shall not be relieved of its responsibility to comply with any other Federal, State, or local law or regulation.

B. This Decree constitutes an agreement pursuant to the Ban

Act, 33 U.S.C. 1414b(c) (3) and satisfies the requirements of 33 U.S.C. 1414b(a) (1) (A) (i). A violation of this Decree is a violation of the MPRSA. The United States and the State do not, by their entry into this Decree, warrant or aver in any manner that the Defendant's complete compliance with this Decree will result in compliance with the Act, the State Ban Act or any other Federal or State law. ++EP++

Page 30

Notwithstanding the EPA's and the State's review of any plans formulated by the Defendant pursuant to this Decree, Defendant is solely responsible for compliance with all Federal and State laws and regulations. The United States and State do not waive any rights or remedies available to them for any violation by Defendant of Federal or State laws or regulations occurring after termination of this Decree. This Decree in no way affects or relieves the Defendant of its responsibility to comply with any Federal or State law or regulation. Nothing in the Decree shall be construed to limit the Plaintiffs' right to seek contempt sanctions for violations of this Decree or to seek penalties or injunctive relief under any Federal or State statute or regulation for violations for which stipulated penalties are not provided for by this Decree.

C. The Defendant, EPA and the State will take all possible

steps to expedite, to the extent practicable, submission and review, as appropriate, of any permits, applications or approvals needed for completion of the interim measures and longterm alternative system(s), setforth herein.

XIV. RETENTION OF JURISDICTION

This Court shall retain jurisdiction to enforce the terms and

conditions of this Decree and to resolve disputes arising hereunder as may be necessary or appropriate for its implementation. ++EP++

Page 31 XV. TERMINATION

This Decree shall terminate when the Defendant has complied

with all applicable requirements of this Decree and the United States and the State have so certified.

The parties consent to entry of this Decree without further

notice.

Respectfully submitted,

DONALD A. CARR

/s/Donald A. Carr

Acting Assistant Attorney General

Land and Natural Resources Division

United States Department of Justice

BRUCE C. BUCKHEIT

/s/ Bruce C. Buckheit

Senior Counsel

Environmental Enforcement Section

Land and Natural Resources Division

United States Department of Justice

Washington, D.C. 20530

SAMUEL A. ALITO, JR.

United States Attorney

for the District of New Jersey

By: VINCENT GENTILE

/s/Vincent Gentile

Assistant United States Attorney

Federal Building (Rm. 502)

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 32

FOR THE ENVIRONMENTAL PROTECTION AGENCY

WILLIAM J. MUSZYNSKI

/s/William J. Muszynski

Acting Regional Administrator

U.S. Environmental Protection Agency

Region II

EDWARD E. REICH

/s/Edward E. Reich

Acting Assistant Administrator

for Enforcement and

Compliance Monitoring

CHARLES E. HOFFMANN

/s/Charles E. Hoffmann

Assistant Regional Counsel

Environmental Protection Agency

26 Federal Plaza

New York, New York 10278 ++EP++

Page 33

FOR THE STATE

CHRISTOPHER J. DAGGETT

/s/Christopher J. Daggett

Commissioner, New Jersey

Department of Environmental Protection

ANTHONY J. PARRILLO

/s/Anthony J. Parrillo

Executive Assistant Attorney General

of the State of New Jersey

ROBERT G. HOYT

/s/Robert G. Hoyt

Deputy Attorney General

State of New Jersey

New Jersey Division of Law

Hughes Justice Complex

Trenton, New Jersey 08625 ++EP++

Page 34

FOR THE LINDEN-ROSELLE SEWERAGE AUTHORITY

GEORGE GORDON

/s/George Gordon

Chairman

Linden-Roselle Sewerage Authority

Attest: JOHN A. ZIEMIAN

/s/John A. Ziemian

Secretary Linden-Roselle Sewerage Authority ++EP++

Page 35

SO ORDERED: DATE UNITED STATES DISTRICT JUDGE ++EP++

JOINT MEETING ESSEX & UNION

01 OF 01

CONSENT DECREE

02-90-C006

MPRSA

MUNI

19891204

19891204

NJD087277661

JOINT MEETING

ELIZABETH, NJ

89-3339

02

CONSENT DECREE, USA AND STATE OF NEW JERSEY V. JOINT MEETING OF ESSEX AND UNION COUNTIES

Page 1 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA,

and STATE OF NEW JERSEY,

Plaintiffs,

v.

JOINT MEETING OF ESSEX

AND UNION COUNTIES

Defendant.

WHEREAS, the United States and the Environmental Protection Agency ("EPA"), the State of New Jersey ("the State"), on behalf of the New Jersey Department of Environmental Protection ("NJDEP") and the Joint Meeting of Essex and Union Counties ("the Joint Meeting" or "the Defendant") enter into this Consent Decree to ensure the phasing out and termination of ocean dumping and the transportation for the purpose of ocean dumping, of sewage sludge pursuant to the Ocean Dumping Ban Act of 1988 ("the Ban Act"), P.L. 100-688; and

WHEREAS, the New Jersey Ocean Sludge Dumping Elimination Act, L. 1988, C.57 supplementing the New Jersey Water Pollution Control Act, N.J.S.A. 58 10A-1 et seq. ("the New Jersey Ban Act") requires that ocean dumping of sludge by New Jersey municipal treatment works be terminated by March 17, 1991; and ++EP++

Page 2

WHEREAS, the United States, EPA, the State and the Defendant have each consented to the making and entering of this Consent Decree, without trial or adjudication of any issues of fact or law and without this Decree constituting any admission by any party with respect to any such issues, and the Court having considered the matter and being duly advised, and it being in the public interest, it is hereby ORDERED and DECREED as follows:

JURISDICTION

I. This Court has jurisdiction over the subject matter and over the parties hereto under 28 U.S.C. Section 1345, and 33 U.S.C. Section 1415. The Court finds that it has jurisdiction and that Plaintiffs' complaint states a claim upon which relief may be granted.

APPLICATION AND BINDING EFFECT

II. The provisions of this Consent Decree ("Decree") shall apply to and be binding upon all parties to this Decree, their officers, directors, agents, servants, employees, successors, assigns, contractors, and all persons, firms and corporations in active concert or participation with them. Prior to any transfer of ownership or operation of the Defendant's publicly owned treatment works, the Defendant shall give written notice of this Decree to any successor(s) in interest and shall simultaneously notify, in writing, EPA and the State that such notice has been given to each successor in interest. ++EP++

Page 3 PHASE OUT OF OCEAN DUMPING

III. The Defendant shall cease ocean dumping of sewage sludge by March 17, 1991. Until cessation of ocean dumping and final implementation of the alternative system of sewage sludge management, the Defendant shall comply with all requirements of this Decree and of any final ocean dumping permit that may be issued under the Marine Protection, Research, and Sanctuaries Act of 1972, as amended, 33 U.S.C. 1401 et seq. ("MPRSA" or "the Act"). No ocean dumping or transportation for the purpose of ocean dumping of sewage sludge shall be conducted after August 14, 1989, unless prior to such activity the Defendant has obtained a new, effective, final ocean dumping permit under Section 102 of the MPRSA, 33 U.S.C. 1412 Defendant shall comply with all terms and conditions of any final permit issued pursuant to the MPRSA during the pendency of this Decree. In the event that any part of the final permit is challenged or stayed, the Defendant shall comply with all terms and conditions of the draft final permit, attached hereto and incorporated herein as Attachment A, during the pendency of such challenge. In any permit enforcement proceeding Defendant reserves all defenses available to it at law, other than defenses relating to the lawfulness of the permit and of its terms and conditions. Should ocean dumping continue under this Decree beyond the effective term of the permit, and no new permit be issued, the terms and conditions of the most recent permit issued to the Defendant after May 31, 1989, shall continue to be complied with as conditions of this Decree. ++EP++

Page 4 IV. SCHEDULES FOR IMPLEMENTATION OF AN ALTERNATATE SYSTEM

IV.A. The Joint Meeting shall implement the following plan for an alternate system for the management and disposal of sewage sludge transported or dumped by the Joint Meeting: on site dewatering of its sewage sludge, landfilling of its sludge on an interim basis followed by incineration of its sewage sludge as a long term alternative, as described in its April, 1989, submission to the State and as determined by the State to be acceptable.

IV.B. In implementing its plan for an alternative system of sewage sludge management and disposal, Joint Meeting shall comply with the following schedule:

1. Completion of detailed sludge management plan and submittal of completed plan for selected alternative system by April 30, 1989.

2. Receive determination from New Jersey Department of Environmental Protection for the selected alternative system identified in the sludge management plan by July 7, 1989.

3./*/ Submit complete air permit application by November 30, 1990.

((/*/ The State will determine within 30 days of a permit application, whether a permit application is satisfactory for purposes of determining compliance with the milestones set forth in paragraph IV of this Decree. Notwithstanding the fact that the permit application was satisfactory at the time it was submitted, the State reserves the right to require additional information while reviewing the permit application in order to develop a draft determination on the permit or a draft permit with appropriate extensions to subsequent milestones being made in accordance with paragraph X of this Decree, where defendant's application was satisfactory.))

4. Receive draft determination on air permit from New Jersey Department of Environmental Protection by May 30, 1991 and final determination by October 31, 1991.

5. Establishment of local pretreatment limits as necessary by February 10, 1995.

6. Advertise or solicit proposals for preparation of final engineering designs and related specifications for the selected alternative system by November 30, 1991. ++EP++

Page 5

7. Award contract for preparation of final engineering designs and related specifications for the selected alternative system by January 30, 1992.

8. Complete preparation of final engineering designs and related specifications for the alternative system selected by October 31, 1993.

9./*/ Submit application for the Treatment Works Approval Stage II for the alternative system selected by October 31, 1993.

10. Receive determination on Treatment Works Approval Stage II from New Jersey Department of Environmental Protection for the alternative system selected by January 31, 1994.

11. Advertise for bids for procurement of necessary equipment and construction of necessary facilities for the alternative system by May 10, 1994.

12. Receive bids for selected alternative system by August 10, 1994.

13. Award contracts for procurement of necessary equipment and construction of necessary facilities for the alternative system by October 10, 1994.

14. Commence on-site construction activities for the alternative system selected by February 10, 1995.

15. Complete all construction related activities necessary for shakedown and preliminary operation by August 10, 1997.

16. Commence testing of the alternative system by August 10, 1997.

17. Complete testing of alternative system and commence full operation of alternative system by February 10, 1998.

18. Achieve compliance with all sludge quality criteria requirements for the selected long term sludge management alternative by February 10, 1998. ++EP++

Page 6

IV.C. Joint Meeting shall comply with the following schedules in implementing its interim measures to cease ocean disposal of sewage sludge:

1. Complete final design of sludge dewatering facilities by October 5, 1989.

2. Submit complete construction permit applications for sludge dewatering facilities by June 23, 1989.

3. Receive determination for the Treatment Works Approval Stage II from New Jersey Department of Environmental Protection by August 7, 1989.

4. Advertise for bids for sludge dewatering facilities by November 6, 1989.

5. Receive bids for sludge dewatering facilities by December 7, 1989.

6. Award contracts for construction of sludge dewatering facilities by December 21, 1989.

7. Commence on-site construction activities of sludge dewatering facilities by February 1, 1990.

8. Secure contracts for interim management of sewage sludge for period of time from March 17, 1991 to date upon which alternative system referred in paragraph IV above becomes operational by October 31, 1990.

9. Secure contracts for contingent interim management method for use if the primary interim management method becomes unavailable by December 31, 1990.

10. Complete all construction related activities necessary for operation, including shakedown, and initiate operation of sludge dewatering facilities and cease ocean disposal by March 17, 1991.

V. REPORTS AND CERTIFICATIONS

A. Beginning with the second calendar month after entry of

this Decree, and continuing monthly thereafter until Defendant ceases ocean disposal of sewage sludge, the Defendant shall submit in writing to EPA and the State a report and certification detailing the status and progress of the interim measures under paragraph IV for phasing out and terminating ocean dumping of sewage sludge and for implementing its interim system of land based sludge management. ++EP++

Page 7

B. Commencing with the second calendar month after entry of

this Decree, the Defendant shall submit quarterly reports and certifications concerning its progress in implementing its long term alternative land-based system of sludge management.

C. The reports required by this paragraph shall include a

description of the work performed in the previous period and a projection of the work to be performed during the following twelve month period pursuant to this Decree. The duly authorized representative ("representative") is the person with knowledge and authority to make the reports and to certify as to their accuracy as follows. The representative shall certify in the form for certifications of Discharge Monitoring Reports under the Clean Water Act, as set out at 40 C.F.R. 122.22(d), that the Defendant has met all schedule milestones in the prior period, and that the Defendant continues to be on schedule to meet all schedule milestones as set forth in paragraph IV of this Decree. Where the representative is unable to certify compliance, he or she shall identify the noncompliance, the reasons for such noncompliance, and the measures being taken to remedy the noncompliance. The Defendant shall submit such reports and certifications of compliance by certified mail, return receipt requested within 15 days of the end of the reporting period. ++EP++

Page 8

Reports and certifications indicating that the Defendant is not in compliance with the Decree shall also be submitted by either telefax or express mail.

D. Within 15 days of each milestone date specified in the

schedules in paragraph IV, the Defendant shall submit in writing to EPA and the State a report setting forth in detail whether or not the Defendant has complied in full with the requirement and if not, the work remaining to be done to achieve full compliance and a schedule for completion of such work. If a schedule milestone date is not met, the representative shall state what impact, if any, there will be on compliance with the final schedule dates in paragraph IV, and subsequently prepare and submit an acceleration plan to ensure that schedule dates in paragraph IV will be complied with to the extent possible. Defendant may incorporate this information in monthly or quarterly reports required by subparagraph A of this paragraph, provided that the Defenant does so within 31 days of a milestone if the milestone is timely achieved or within 15 days of a milestone if such milestone is not met.

E. The EPA and the State shall confer quarterly to evaluate

the compliance of the Defendant with the schedules established in paragraph IV above. Upon 15 days notice from either EPA or the State, the Defendant shall provide a properly informed and authorized representative for such conference to discuss progress and problems in the planning, design and construction of the alternative systems for sludge management and the interim measures needed to eliminate the ocean disposal of sewage sludge. ++EP++

Page 9

F. The Defendant shall submit to EPA and the State a

quarterly report detailing the following: (1) the volume of sludge disposed of in the ocean during the preceding quarter; (2) the dollar amounts pursuant to paragraph VIII of this Decree for the volume of sludge disposed of in the ocean; (3) the date and amounts of payments made in accordance with paragraph VIII of this Decree by Defendant; and (4) verification of payment and sufficient documentation of payments by defendant's auditors (including documentation that appropriate payments were made) for all payments due in the reporting period. This report shall be submitted by the fifteenth day of the second month following the end of the calendar quarter. The first report shall be submitted by November 15, 1989.

G. The Governor of the State shall submit to the

Administrator of EPA on September 30 of each year, commencing with 1989, a progress report as required by Section 104B(h) of the MPRSA, 33 U.S.C. 1414b(h). Failure to submit such a report shall result in a withholding of funds from the State pursuant to Section 104B(h) (2) of the MPRSA, 33 U.S.C. 1414b(h) (2).

VI. PROGRAM OVERSIGHT BY DEFENDANT

A. Within 30 days of the date of entry of this Decree the

Defendant shall designate a duly authorized representative whose responsibility shall be to oversee the Defendant's program for construction of the interim and alternative sludge management facilities and to file the reports required by this Decree. ++EP++

Page 10

B. Such representative shall have, at a minimum, the

following responsibilities:

(1) facilitating the coordination of the Defendant's

activities among its various departments and agencies in order to expedite and facilitate compliance with the terms of this Decree;

(2) attending quarterly progress meetings (as described in

paragraph V.E above) among the parties or designating an acceptable representative to do so; and

(3) timely filing all reports required by this Decree.

VII. STIPULATED PENALTIES

The amounts set forth herein shall be the stipulated civil

penalties under the Act and the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for the following specifically enumerated violations of paragraphs IV and V.

A. If the Defendant fails to comply with the specified

deadlines and requirements of paragraph IV of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Non-compliance Violation or Violation Per Day 1-30 $ 2,000 31-60 $ 5,000 Beyond 60 Days $10,000 ++EP++ Page 11

Payments shall commence within thirty days of demand and shall become due and payable monthly thereafter.

B. If the Defendant fails to comply with any applicable

requirements of paragraph V of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Noncompliance Violation or Violation Per Day 1-30 $ 100 31-60 $ 200 Beyond 60 Days $ 500

Payments shall commence not later than thirty days from the date of the violation and shall become due and payable monthly thereafter.

C. The stipulated penalties set forth in subparagraphs A and

B above shall begin to accrue on the day that performance is due or the non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance. Each separate violation of this Decree shall constitute a separate penalty event, and nothing herein shall prevent the simultaneous accrual of separate penalties for separate violations of this Decree. In the event that stipulated penalties are payable to the Plaintiffs under this Decree and subject to subparagraph D and E, herein, fifty (50) percent of such penalty shall be paid to the United States and fifty (50) percent of such penalty shall be paid to the State. ++EP++

Page 12

Penalties due to the United States shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the United States," to the United States Attorney for the Destrict of New Jersey with a copy to EPA and to New Jersey DEP. Penalties due to the State shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the State of New Jersey," to the New Jersey Department of Environmental Protection, Bureau of Revenue, CN 402, Trenton, New Jersey 08625 with a copy to EPA. Interest shall accrue on any stipulated penalty not paid when due at the rate established by the Department of the Treasury under 31 U.S.C. Section 3717.

D. 1. Stipulated penalties for failure to meet milestone

events for its interim measures (schedule elements IV.C.) shall be forgiven if the Defendant ceases ocean disposal of all of its sewage sludge by March 17, 1991, provided that Defendant has paid in the time frames provided for herein, all amounts demanded for alleged violations of those provisions of the Decree into an escrow account acceptable to the Court and to the Plaintiffs. If the Defendant for any reason fails to pay into escrow any amounts demanded, either pending adjudication of the claimed noncompliance or pending its ceasing of ocean disposal on or before March 17, 1991, this forgiveness provision shall be of no effect and such stipulated penalties as are due and owing because of Defendant's failure to meet an earlier milestone event shall be paid to the Plaintiffs. ++EP++

Page 13

The interest earned on stipulated penalties paid into escrow shall be paid over to whichever party is entitled to the principal.

2. Except for stipulated penalties resulting from Defendant's

failure to comply with the milestone event set forth in paragraph IV.B.14, any stipulated penalties incurred by Defendant for failure to achieve any other milestone date in the schedules set forth in paragraph IV.B. shall be forgiven upon the Defendant's timely achievement of the next subsequent milestone date in that schedule, provided that the conditions of this paragraph are met. Such stipulated penalties shall be paid within thirty days of demand by EPA or the State by tendering a check in the appropriate sum to the agent of an escrow account to be established by the Defendant. If Defendant thereafter demonstrates compliance with the next subsequent milestone event set forth in the schedule, then all stipulated penalties paid and held in escrow for violation of the preceding missed milestone event shall be returned to the Defendant. If, however, the Defendant fails to comply with the next subsequent milestone event set forth in the schedule, then the escrow agent shall pay such amounts of the escrow account for that schedule, including all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph. Nothing contained herein shall relieve the Defendant of any obligation to pay any stipulated penalties hereunder that the Defendant fails to pay into the escrow account or which the escrow agent fails to pay to the United States and the State. ++EP++

Page 14

E. In the event that Defendant claims that a Force Majeure

event, as defined in paragraph XI of this Decree has occurred such that no stipulated penalty is due for a missed milestone date, Defendant shall pay the stipulated penalty into an escrow account and such payment shall be held by the escrow agent pending resolution of the Defendant's claim of Force Majeure pursuant to paragraphs XI and XII. If it is determined that no stipulated penalty is due, then all stipulated penalties paid and held in escrow for the violation of the milestone dates at issue shall be returned to the Defendant promptly. If, however, it is determined that the stipulated penalty is due because the delay was not caused by a Force Majeure event, then the escrow agent shall pay such amounts of the principal and interest that are not entitled to further escrow pursuant to subparagraph D, herein, and all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph.

F. In addition to the stipulated penalties set forth above

and the fees and other statutory assessments established by the Ban Act: (1) the civil penalties and other relief provided by the MPRSA at 33 U.S.C. Section 1415 for violations of the Act for which stipulated penalties are not provided for herein, for violations of regulations issued thereunder, for violations of permits issued thereunder, and for violations of this Decree for which stipulated penalties are not provided for herein, shall apply and remain in effect; and (2) the civil penalties and civil administrative penalties and other relief provided by the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for violations of the Acts, for violations of regulations promulgated pursuant thereto, and for violations of permits issued pursuant thereto, for which stipulated penalties are not provided for herein, shall apply and remain in effect. ++EP++

Page 15

Notwithstanding any other provision of this Decree, New Jersey specifically reserves the right to seek injunctive relief and the maximum penalties pursuant to the New Jersey Water Pollution Control Act, including the New Jersey Ban Act for failure to cease ocean dumping of sewage sludge by March 17, 1991.

G. In the event of failure to pay stipulated penalties, as

set out above, this matter may be referred to the United States Attorney and the State Attorney General for collection. Defendant shall be liable for Plaintiffs' postdemand expenses, including attorney's fees, in such collection action.

VIII. STATUTORY ASSESSMENTS AND ESCROW REQUIREMENTS

A. In satisfaction of Defendant's obligations under 33 U.S.C.

1414b(b) (1) and 1414b(d) (1), the Defendant shall pay the amounts set forth herein for each day for the sewage sludge it disposes of in the ocean. ++EP++

Page 16

Such payments are separate and apart from any penalties the Defendant may be liable for under paragraph VII. The quantity of dry tons shall be based upon the monthly average of percent solids for the sludge transported for the purpose of ocean disposal or disposed of in the ocean. Penalties for disposing of sewage sludge or transporting sewage sludge for the purpose of disposing of it in the ocean shall be calculated for any such disposal after December 31, 1991, as set out in Section 1414b(d) (1) of the MPRSA. Such penalties are mandatory and independent of any civil penalties assessed or collected pursuant to Section 105 of the MPRSA and of any stipulated penalties assessed or collected pursuant to this Decree.

For the purpose of determining the applicable per-dry-ton fee

or penalty, the date and time of initiation of transportation for the purpose of ocean disposal, to be reported as the time of loading sludge onto a barge (as required by condition 30.b. of the draft final permit), shall be used.

B. Payments of amounts assessed under paragraph VIII shall be

made no later than on a quarterly basis, on the last day of the month following the end of a calendar quarter, if necessary should previous cumulative expenditures from the trust account described in C, below, be less than amounts due. The first payment, for sewage sludge dumped or for dumping initiated during the calendar quarter ending September 30, 1989 shall be made by October 31, 1989. For the purpose of determining the calendar quarter in which sludge was dumped, the date and time of initiation of transportation for the purpose of ocean disposal as the time of loading of sludge onto a barge (to be reported as required by condition 30.b. of the draft final permit) shall be used. ++EP++

Page 17

C. The Defendant shall maintain a trust account, as approved

by EPA, pursuant to 33 U.S.C. 1414b(e) in the form attached to this Decree for the payment and use of that portion of the statutory assessments and penalties established by the Ban Act that are to be deposited in this trust account. Nothing herein is intended to preclude defendants from utilizing funds raised for facilities to enable them to cease ocean disposal of sewage sludge to satiafy their escrow obligations under this Decree.

D. Defendant shall pay fees and penalties in accordance with

33 U.S.C. Sections 1414b(b) (2) (c) and 1414b(d) (2) (c) (i) into the Clean Oceans Fund established under 33 U.S.C. 1414b(c) (5) and the Water Pollution Control Revolving Fund established under Title VI of the Federal Water Pollution Control Act. In the event that the State has not established a Clean Oceans Fund or water pollution control revolving fund by February 28, 1990, fees and penalties required to be paid to the Fund or revolving fund by Defendant shall be paid to EPA pursuant to 33 U.S.C. 1414b(b) (5).

E. In satisfaction of Defendant's obligations under 33 U.S.C.

Sections 1414b(b) (2) and 1414b(d) (2), the following amounts shall be paid by Defendant as set forth below to the following recipients for each dry ton of sewage sludge dumped in the ocean: ++EP++

Page 18

Payments Per Dry Ton Dumped

Recipients State Water Year in Clean Pollution Which Sludge Trust Oceans Control Re- Was Dumped EPA Account Fund/1/ volving Fund/1/ 1989 $15.00 $ 85.00 -- -- 1990 15.00 127.50 $3.75 $3.75 1991 15.00 170.00 7.50 7.50

((/1/If established; if not established, to EPA pursuant to paragraph VIII.D.))

After December 31, 1991, payment and distribution of penalties shall be computed and paid in accordance with 33 U.S.C. 1414b(d) (2).

F. Amounts paid to EPA under paragraph VIII.E shall be paid

by a check made payable to the "Treasurer of the United States," and delivered by certified mail, return receipt requested, to EPA. Statutory assessments paid to the Clean Oceans Fund, state water pollution control revolving fund, or State shall be paid by a check made payable to the Treasurer, State of New Jersey, and delivered by certified mail, return receipt requested, to the State. Amounts paid into the trust account shall be paid by a check made payable to the trustee for said account. Whenever any payment is due under this Decree, if such payment is not received on or before the day on which payment is to be made pursuant to paragraph VIII.B., interest on the amount due will be assessed without further demand against Defendant at the annual rate established by the Secretary of the Treasury pursuant to 31 U.S.C. Section 3717, on the overdue amount from the day on which it was due through the date of payment. ++EP++

Page 19

Failure to pay the amounts in full according to the above provisions will result in referral of this matter to the United States Attorney and the State Attorney General for collection. Interest on late payments shall be paid to EPA for untimely payments to EPA or the Defendant's trust account and to the State for untimely payments to it or to its revolving fund or Clean Oceans Fund. Interest on late payments shall be deposited in the U.S. Treasury or State Treasury as appropriate as general funds. Defendant shall be liable for Plaintiffs' necessary and reasonable expenses, including attorneys' fees, in such collection action.

G. In the event of Defendant's failure to make full payment

to the trust account in accordance with paragraph VIII of this Decree within thirty days of the date on which it was due or Defendant's failure to use amounts withdrawn or received from the account in accordance with 33 U.S.C. 1414b(e) and this Decree, EPA shall provide nootice to the Defendant and an opportunity for informal dispute resolution. If, thereafter, EPA finds that such a failure has occurred, it may direct the trustee of the trust account to pay the balance of the amounts in the trust account to the State for use in accordance with 33 U.S.C. 1414b(e) (2) (C). ++EP++

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Pending final resolution of any district court challenge, the trustee shall continue to hold the funds in the trust account.

H. Amounts paid to the trust account, the State, the Clean

Oceans Fund, or the state water pollution control revolving fund shall be used subject to the restrictions of 33 U.S.C. Sections 1414b(c) (5), (e) and (f). The Defendant shall conduct audits on an annual basis to establish that such statutory assessments and penalties were properly deposited and paid out. The Defendant shall utilize the services of an auditor to conduct separate audits, on an annual basis of Defendant's expenditures from the trust account and from funds provided to it from the Clean Oceans Fund, to demonstrate compliance with 33 U.S.C. 1414b(c) (5) and (e). Costs incurred by the Defendant pursuant to this Decree and paid from the trust account and from funds provided to Defendant from the Clean Oceans Fund shall be necessary and reasonable, and allocable to the projects allowed by 33 U.S.C. 1414b(c) (5) and (e). The Defendant may look to the applicable cost principles of OMB Circular A-87 (46 Federal Register 9548 (1981)) for guidance in determining allowable costs. Such audit reports required of the Defendant shall be submitted to EPA and the State within 90 days after the end of each calendar year.

I. The Defendant shall submit to the EPA and the State, a

scope of work for each project for which it expects to seek to withdraw funds from the trust account in the following six-month period. The first report shall be due by August 30, 1989 and shall cover the period from August 15, 1989 through December 31, 1989. ++EP++

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Subsequent submissions shall be due 60 days prior to commencement of the next six-month period (e.q., October 30, 1989, for the period of January 1 through June 30, 1990). Each scope of work will consist of a description of the major activities to be funded in each project, the required level of funding for each such activity and a cumulative six- month payment schedule based upon projected costs to be incurred.

J. EPA will approve or disapprove the projected work and

estimated costs for the major activities for the following six month period and will notify the trustee of the trust account and the State of EPA's approval or disapproval of the projected work and estimated cost and will provide the trustee with a list of the approved activities, funding levels and associated payment schedule. If EPA fails to act on the Defendant's proposed scope of work and payment schedule within 60 days of its receipt, the Defendant may submit the scope of work and payment schedule to the Trustee together with a certification that EPA has failed to disapprove use of the trust account as required in 33 U.S.C. 1414b(e) (2) (A).

K. The Defendant may request funds from the Trustee for

immediate cash disbursements based upon the approved payment schedule costs incurred. The Trustee will authorize the expenditure of funds in accordance with the scope of work and approved payment schedule. If the Defendant anticipates that funding for the authorized activities will exceed the amounts in the approved scope of work, the Defendant may seek approval for the release from its trust account from EPA for such additional needs. ++EP++

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L. This Decree specifies only the minimum amounts that must

be placed in the trust account. Nothing in this Decree is intended to prevent the Defendant from depositing into the trust account, as a matter of administrative convenience, sums greater than those specified herein, or to preclude them from depositing additional amounts for any lawful purpose, provided that the minimum amounts required to be in such account are at all times present. Notwithstanding the fact that the Defendant may have deposited in the Trust Fund sums greater than the statutorily prescribed amounts, for its convenience or for any other good reason, the Plaintiffs' interest in the Trust Fund is limited to the amounts established by the Ban Act and as set out herein.

IX. NOTIFICATIONS

A. Except as specified otherwise, when written notification

to or communication with the United States or the State is required by the terms of this Decree or when payment of a statutory assessment or penalty is to be made, it shall be sent by certified mail, return receipt requested, and addressed as follows:

As to the United States of America:

United States Attorney's Office

Federal Building

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 23

United States Department of Justice

Land and Natural Resources Division

10th & Constitution Ave., N.W.

Washington, D.C. 20530

Attn: Chief, Environmental Enforcement

Section

As to the Environmental Protection Agency:

U.S. Environmental Protection Agency

Region II

Office of Regional Counsel

26 Federal Plaza

New York, New York 10278

U.S. Environmental Protection Agency

Financial Management Branch, Policy and

Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

Water Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

As to State:

Chief, Environmental Protection Section

Division of Law

CN 112

Hughes Justice Complex

Trenton, New Jersey 08625

Director

Division of Water Resources

Department of Environmental Protection

CN 029

401 E. State Street

Trenton, New Jersey 08625

As to Defendant:

Michael J. Brinker, Jr.

Executive Director

Joint Meeting of Essex and Union County

500 South First Street

Elizabeth, New Jersey 07202 ++EP++

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Notifications to or communications with the United States, EPA or the State shall be deemed submitted on the date they are telefaxed or postmarked and sent by certified mail, return receipt requested, whichever occurs later.

B. Reports required to be submitted pursuant to paragraph V

shall be signed by the responsible official of the Defendant designated pursuant to paragraph VI and shall include a certification under penalty of law that the responsible official is in a position to know the the facts contained in the report, has made sufficient inquiry to determine the accuracy of the information contained in the submission and that he or she certifies that to the best of his knowledge the information contained in or accompanying the submission is true, accurate and complete. (See 40 C.F.R. 122.22 for form of certification.)

X. MODIFICATIONS

Except as provided for herein, there shall be no modification

of this Decree without written approval of all of the parties to this Decree, subject to the approval of the Court, or Order of the Court. Nothing herein shall be construed to limit any party's rights pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.

XI. FORCE MAJEURE

A. A Force Majeure event is any event that is beyond the

control and without the fault of the Defendants and/or its contractors and which causes a delay in implementing any of the measures required by this Decree. ++EP++

Page 25

Such Force Majeure events may be occasioned by, among other things, Act of God; contractor or supplier default; failure of a federal or state regulatory agency to issue any necessary permit or approval in a timely fashion (where, in accordance with all applicable laws and regulations, the Defendant timely submitted an application, has done all it can do to ensure that such application is complete, has provided all necessary supporting information and is otherwise entitled to such permit or approval); inability to secure responsible bids; or a judicial injunction (where such injunction is issued by a court of competent jurisdiction directed against work actually being performed in furtherance of construction of sludge treatment and disposal facilities and provided that the Defendant has exercised due diligence and best efforts in seeking removal to this court and in resisting such injunction, including appeals, and further provided that the Defendant has acted in accordance with applicable statutes and regulations). If a Force Majeure event occurs, Defendant shall be entitled to a modification of the schedule milestones to the extent that such event was beyond the control of the Defendant. The Defendant bears the burden of establishing that the event was beyond its control and of demonstrating the amount of delay that is necessary because of the Force Majeure event. As a condition precedent to obtaining any relief under this provision, Defendant shall notify the Court and all the parties in writing that a Force Majeure event has occurred, no later than 90 days after the date Defendant knew or should have known of the occurrence of any Force Majeure event. ++EP++

Page 26

B. The notice to EPA and the State, required above, shall

include, to the extent such information is available at the time of such notification:

1. The anticipated length of time of the delay;

2. The cause of the Force Majeure event;

3. Measures taken to minimize the delay including a time

table for implementation of any such measures;

4. Proposed date by which subsequent schedule milestones will

be achieved; and

5. Activities that can be taken to minimize the impact of the

Force Majeure event on the overall schedule.

C. If all the parties agree that a failure to comply with any

requirement of this Decree, including a schedule milestone in paragraph IV, was caused by a force majeure event, the parties shall seek an amendment to this Decree containing such proposed modifications, including revised schedule milestones as may be necessary, and no stipulated penalties shall be incurred. If the parties agree that an extension is necessary, the schedule of milestone dates under paragraph IV shall be extended for the period of time caused by the Force Majeure event. However, it is the State's intention to oppose any extension of the disposal of sludge beyond March 16, 1991 because it is the State's position that it has no authority to extend the statutorily imposed deadline. ++EP++

Page 27

In the event that revision of the schedule milestones is necessary, the Defendant agrees to make every effort to ensure that the milestone events set forth in paragraph IV are not extended.

D. If the parties cannot agree that a failure to achieve

milestone dates was beyond the control of the Defendant, the Defendant may, within 90 days following the missed milestone event, apply to the Court for a determination as to whether all or part of the delay was excusable due to a Force Majeure event.

E. If, for any reason, the Defendant fails to achieve any

schedule milestone established in paragraph IV and the parties cannot agree that the remainder of the schedule milestones will be affected, or how they will be affected, then the Defendant may, within 90 days following the missed schedule milestone, petition the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule milestones as established in paragraph IV. Whenever a milestone is missed, the Defendant shall exercise its best efforts to recoup all lost time, including, where appropriate, the payment of additional costs for overtime, double shifts or additional contractors or consultants.

XII. DISPUTE RESOLUTION

A. Any dispute between two or more parties to this Decree

which arises under this Decree shall in the first instance be the subject of informal negotiations between the parties to the dispute for a period of up to twenty (20) days from the time notice of the dispute is given. ++EP++

Page 28

Both the EPA and the State shall be considered parties to any dispute. The period for negotiations may be extended by agreement of the parties to the dispute.

B. In the event that the parties cannot resolve the dispute

by informal negotiations under the preceding paragraph, then the position advanced by EPA and the State, after consultation, will be considered binding unless, within fifteen (15) days after the end of the informal negotiations period, the Defendant files a petition with this Court setting forth the matter in dispute, the efforts of the parties to resolve it, and the relief requested which may include a request that a master be appointed by the court. Any party to the dispute may present a disputed matter to the Court before the end of the negotiations period if the matter concerns stipulated penalties or otherwise requires early resolution. The dispute resolution procedures of this paragraph shall be the exclusive mechanism to resolve disputes arising under this Decree and in connection with the draft final permit incorporated herein.

If, for any reason, the Defendant fails to achieve any

milestone date(s) established in paragraph IV and the parties cannot agree that the remainder of the schedule will be affected, or how it will be affected, and the Defendant petitions the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule for such project as established in this Decree, in the interim the Defendant shall exercise its best efforts to recoup all lost time. ++EP++

Page 29

In any proceeding convened under this paragraph, the Defendant shall bear the burden of proof to demonstrate that a change in the schedule is required. The Court shall determine whether and to what extent future milestones will be affected and, if the Court so finds, shall direct that appropriate schedules be submitted. Prior to the recommendation of any schedule further extending the end dates for completion of the tasks enumerated in paragraph IV, the Defendant shall demonstrate to the Court that alternative methods to recoup time lost in the delays have been explored and that no practicable means exist to do so.

C. The filing of a petition asking the Court to resolve a

dispute shall not of itself extend or postpone any obligation of the Defendant under this Decree, provided further that nothing herein shall prevent an affected party from applying to the Court, upon notice to all parties, for a stay of relief authorized or directed by this Decree.

D. In proceedings on any dispute regarding a delay in

performance or other noncompliance, the Defendant shall have the burdens of proving (1) that the delay or other noncompliance is or was caused by circumstances beyond the Defendant's control and without fault of the Defendant, and (2) that the amount of any additional time requested is necessary to compensate for such circumstances. ++EP++

Page 30 XIII. COMPLIANCE WITH OTHER LAWS

A. Except as otherwise provided in this Decree, the Defendant

shall not be relieved of its responsibility to comply with any other Federal, State, or local law or regulation.

B. This Decree constitutes an agreement pursuant to the Ban

Act, 33 U.S.C. 1414b(c) (3) and satisfies the requirements of 33 U.S.C. 1414b(a) (1) (A) (i). A violation of this Decree is a violation of the MPRSA. The United States and the State do not, by their entry into this Decree, warrant or aver in any manner that the Defendant's complete compliance with this Decree will result in compliance with the Act, the State Ban Act or any other Federal or State law. Notwithstanding the EPA's and the State's review of any plans formulated by the Defendant pursuant to this Decree, Defendant is solely reaponsible for compliance with all Federal and State laws and regulations. The United States and State do not waive any rights or remedies available to them for any violation by Defendant of Federal or State laws or regulations occurring after termination of this Decree. This Decree in no way affects or relieves the Defendant of its responsibility to comply with any Federal or State law or regulation. Nothing in the Decree shall be construed to limit the Plaintiffs' right to seek comtempt sanctions for violations of this Decree or to seek penalties or injunctive relief under any Federal or State statute or regulation for violations for which stipulated penalties are not provided for by this Decree. ++EP++

Page 31

C. The Defendant, EPA and the State will take all possible

steps to expedite, to the extent practicable, submission and review, as appropriate, of any permits, applications or approvals needed for completion of the interim measures and longterm alternative system(s), setforth herein.

XIV. RETENTION OF JURISDICTION

This Court shall retain jurisdiction to enforce the terms and

conditions of this Decree and to resolve disputes arising hereunder as may be necessary or appropriate for its implementation.

XV. TERMINATION

This Decree shall terminate when the Defendant has complied

with all applicable requirements of this Decree and the United States and the State have so certified.

The parties consent to entry of this Decree without further

notice.

Respectfully submitted,

DONALD A. CARR

/s/Donald A. Carr

Acting Assistant Attorney General

Land and Natural Resources Division

United States Department of Justice ++EP++

Page 32

BRUCE C. BUCKHEIT

/s/Bruce C. Buckheit

Senior Counsel

Environmental Enforcement Section

Land and Natural Resources Division

United States Department of Justice

Washington, D.C. 20530

SAMUEL A. ALITO, JR.

United States Attorney

for the District of New Jersey

By: VINCENT GENTILE

/s/Vincent Gentile

Assistant United States Attorney

Federal Building (Rm. 502)

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 33

FOR THE ENVIRONMENTAL PROTECTION AGENCY

WILLIAM J. MUSZYNSKI

/s/William J. Muszynski

Acting Regional Administrator

U.S. Environmental Protection Agency

Region II

EDWARD E. REICH

/s/Edward E. Reich

Acting Assistant Administrator

for Enforcement and

Compliance Monitoring

CHARLES E. HOFFMANN

/s/Charles E. Hoffmann

Assistant Regional Counsel

Environmental Protection Agency

26 Federal Plaza

New York, New York 10278 ++EP++

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FOR THE STATE

CHRISTOPHER J. DAGGETT

/s/Christopher J. Daggett

Commissioner, New Jersey

Department of Environmental Protection

ANTHONY J. PARRILLO

/s/Anthony J. Parrillo

Executive Assistant Attorney General

of the State of New Jersey

ROBERT G. HOYT

/s/Robert G. Hoyt

Deputy Attorney General

State of New Jersey

New Jersey Division of Law

Hughes Justice Complex

Trenton, New Jersey 08625 ++EP++

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FOR THE JOINT MEETING OF ESSEX AND UNION COUNTIES

ROBERT H. GRASMERE

/s/Robert H. Grasmere

Chairman

Joint Meeting of Essex and Union Counties

MICHAEL J. BRINKER, JR.

/s/Michael J. Brinker, Jr.

Executive Director

Joint Meeting of Essex and Union Counties

500 South First Street

Elizabeth, New Jersey 07202 ++EP++

Page 36

SO ORDERED:

Dec 4, 1989

DATE

ILLEGIBLE SIGNATURE

UNITED STATES DISTRICT JUDGE ++EP++

ATT I-1 TRUST AGREEMENT

Trust Agreement, the "Agreement," entered into as of August 2, 1989 by and between Joint Meeting of Essex and Union Counties a New Jersey municipal corporations organized in Joint Meeting, the "Grantor," and Harry Stevenson, Certified Public Accountant the "Trustee."

Whereas, the Ocean Dumping Ban Act of 1988, "the Act," establishes certain requirements applicable to the Grantor, including payment of fees and/or penalties into a trust account to fund certain projects to attain the public purpose of terminating the Grantor's ocean dumping,

Whereas, the United States Environmental Protection Agency, "EPA," exercising its authority under the Act, has determined that this Trust Agreement provides for a satisfactory trust account to implement the public purpose of the Ocean Dumping Ban Act of 1988,

Whereas, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and EPA has approved this selection of trustee, and the Trustee is willing to act as trustee,

Now, Therefore, the Grantor and the Trustee agree as follows:

Section 1. Definitions. As used in this Agreement:

(a) The term "Grantor" means the Joint Meeting of Essex and Union Counties the person dumping sewage sludge into ocean waters, who enters into this Agreement, and any successors or assigns of the Grantor,

(b) The term "Trustee" means the Trustee who enters into this Agreement and any successor Trustee.

(c) The term "Regional Administrator" means the Regional Administrator of Region II of the United States Environmental Protection Agency.

Section 2. Purpose and Restrictions on Use of Trust Fund. It is the intent of the Grantor and the Trustee that this Fund be established for the benefit of the Grantor to assist it in attaining the purposes of the Ocean Dumping Ban Act of 1988 and that the trust fund and the income thereof shall be used only for costs incurred after August 14, 1989, for projects which will identify, develop, and implement:

(a) an alternative system, and any interim measures, for the management of sewage sludge, including but not limited to any such system or measures utilizing resource recovery, recycling, thermal reduction, or composting techniques; or ++EP++

ATT I-2

(b) improvements in pretreatment, treatment, and storage techniques for sewage sludge to facilitate the implementation of such alternative system or interim measures.

Section 3. Establishment and Extent of Fund. The Grantor hereby establishes a trust fund, the "Fund," for the uses and purposes set forth in this Agreement. The Fund is established initially as consisting of cash, which is acceptable to the Trustee. Such cash and any other cash subsequently transferred to the Trustee is referred to as the Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by EPA. Notwithstanding the fact that the Grantor may have deposited sums in excess of those required by the Consent Decree, attached hereto, into the Fund, the EPA and the State's interest in the Fund is limited to the amounts set forth in the Consent Decree.

Section 4. Payments comprising the Fund. Payments made to the Trustee for the Fund shall consist of checks or wire transfers.

Section 5. Instructions to the Trustee. Except as provided in Sections 6, 7, and 17 of this Agreement, all orders, requests, and instructions to the Trustee shall be in writing, signed by the Grantor or his representative as designated in the attached Exhibit A and the EPA Reagional Administrator or his representative as designated in the attached Exhibit B. The Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor or the EPA Regional Administrator hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and the EPA Regional Administrator, except as provided for herein.

Section 6. Payment for Authorized Costs. Upon the written request of the Grantor, the Trustee shall disburse funds from the Trust Fund to the Grantor for the payment of costs related to projects qualifying under Section 2 of this Agreement in accordance with the scope of work and payment schedule approved by the EPA Regional Administrator according to the procedures established by Paragraph VIII. I., J., and K. of the Consent Decree attached as Exhibit C to this Agreement. The Grantor may submit payment requests no nore frequently than monthly. The Trustee's disbursement of funds shall not exceed the cumulative amounts associated with the scope of work and payment schedule approved by the Regional Administrator. The trustee shall not be obligated to dispense amounts in excess of the amounts currently available in the trust fund.

Section 7. Trustee Management. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions of Section 5 and this Section. ++EP++

ATT I-3

In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge his duties with respect to the trust fund solely in the interest of the public purpose for which the trust was established and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; except that:

(a) Securities or other obligations of the Grantor, or any other entity conducting or contracting to carry out the dumping of sewage sludge into ocean waters or any alternatives to ocean dumping, or any of their affiliates as defined in the Investment Company Act of 1940, as amended, 15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State government;

(b) The Trustee is authorized to invest the Fund in time or demand deposits, to the extent insured by an agency of the Federal government; and

(c) The Trustee is authorized to hold cash awaiting investment or distribution uninvested for a reasonable time and without liability for the payment of interest thereon.

Section 8. Commingling and Investment. The Trustee is expressly authorized in its discretion:

(a) To transfer from time to time any or all of the assets of the Fund to any common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled with the assets of other trusts participating therein; and

(b) To purchase shares in any investment company registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., including investment companies which may be created, managed, underwritten, or to which investment advice is rendered or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.

Section 9. Express Powers of Trustee. Without in any way limiting the powers and discretions conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:

(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale. No person dealing with the Trustee shall be bound to see to the application of the purchase money or to inquire into the validity or expediency of any such sale or other disposition;

(b) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted;

(c) To register any securities held in the Fund in its own name or in the name of ILLEGIBLE and to hold any security in bearer form or in book entry, or to combine certificates representing such securities with certificates of the same issue held by the Trustee in other fiduciary capacities, or to deposit or arrange for the deposit of such securities in a qualified central depositary even though, when so deposited, such securities may be merged and held in bulk in the name of the nominee of such depositary with other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the United States Government, or any agency or instrumentality thereof, with a Federal Reserve Bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; and ++EP++

ATT I-4

(d) To deposit any cash in the Fund in interest-bearing accounts maintained in or savings certificates of any banking institution, to the extent insured by an agency of the Federal or State government.

Section 10. Taxes and Expenses. All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund.

Section 11. Annual Audit and Valuation. The Trustee shall annually obtain an independently conducted audit and accounting of Trustee's management of the Fund, which shall list and describe all payments into the Fund and all investments of and disbursements from the Fund, including both payments to the Grantor for the public purposes for which the Fund was established and all expenses and fees paid to or by the Trustee. The Trustee shall furnish to the Grantor and to the EPA Regional Administrator a copy of the annual audit and accounting and a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market value as of the end of a calendar year. Such audit report shall be submitted to the Grantor and to the EPA Regional Administrator within 90 days after the end of each calendar year and within 90 days of termination of this agreement. Expenses incurred by the Trustee for fees for obtaining the independently conducted audit and accounting of the Trust, to the extent not paid directly by the Grantor, shall be paid from the Fund.

Section 12. Advice of Counsel. The Trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent permitted by law, in acting upon the advice of counsel. Expenses incurred by the Trustee for fees for legal services rendered to the Trustee in connection with the administration of this Trust, to the extent not paid directly by the Grantor, shall be paid from the Fund.

Section 13. Trustee Compensation. The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing from time to time with the Grantor.

Section 14. Successor Trustee. The Trustee may resign or the Grantor may replace the Trustee, but such resignation or replacement shall not be effective until the Grantor has appointed a successor trustee, the successor trustee has been approved in writing by the EPA Regional Administrator (such approval shall not be unreasonably withheld) and this successor accepts the appointment. The successor trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the successor trustee's acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor trustee the funds and properties then constituting the Fund. ++EP++

ATT I-5

If for any reason the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor trustee or for instructions and shall notify the EPA Regional Administrator in writing of such application. The successor trustee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the EPA Regional Administrator and the present Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts comtemplated by this Section shall be paid as provided in Section 10.

Section 15. Payment and Notice of Payment or Nonpayment. The Grantor shall make payments to the Fund on a quarterly basis on the last day of the month following a calendar quarter, if necessary, should previous payments into the fund, less cumulative expenditures, be less than amounts due under Paragraph VIII.E of the Consent Decree. The Trustee shall notify the EPA Regional Administrator of the receipt and the amount of any payment from the Grantor, by certified mail within 10 days of receiving such payment. The Trustee shall notify the Grantor and the EPA Regional Administrator, by certified mail within 10 days following the date any quarterly payment is due, if no payment is received from the Grantor during that period.

Section 16. Amendment of Agreement. This Agreement may be amended by an insrtument in writing executed by the Grantor, the Trustee, and the EPA Regional Administrator, or by the Trustee and the EPA Regional Administrator if the Grantor ceases to exist.

Section 17. Forfeiture of the Fund. In accordance with Paragraph VIII.G of the Consent Decree attached as Exhibit C to this Agreement, the Trustee shall, if directed in writing by the EPA Regional Administrator, pay the balance of the amounts in the Fund, less trust administration expenses, to the State of New Jersey for deposit into the State's water pollution control revolving fund, established under title VI of the Federal Water Pollution Control Act. Pursuant to Paragraph VIII.G. of the Consent Decree, the EPA Regional Administrator may direct the Trustee to stop further payments to the Grantor by withdrawing approval to the scope of work or payment schedule required under Section 6. In the event of a forfeiture, the EPA and the State shall not be entitled to any amounts the Grantor may have deposited into the trust account that are greater than the statutory amounts (i.e., amounts greater than the statutory assessments pursuant to 33 U.S.C. Sections 1414b(b) (2) and 1414b(d) (2) less any authorized expenditures).

Section 18. Irrevocability and Termination. Subject to the right of the parties to amend this Agreement as provided in Section 16, this Trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee, and the EPA Regional Administrator, or by the Trustee and the EPA Regional Administrator, if the Grantor ceases to exist. Except as provided under Section 17, upon termination of the Trust, all remaining trust property, less final trust administration expenses, shall be paid to the Grantor for use: ++EP++

ATT I-6

(a) for debts incurred by the Grantor in complying with the Act or the Federal Water Pollution Control Act;

(b) in meeting the requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) which apply to the Grantor, including operations and maintenance; and

(c) for matching Federal grants.

Section 19. Immunity and Indemnification. The Trustee shall not incur personal liability of any nature in connection with any act or omission. made in good faith, in the administration of this Trust, or in carrying out any directions by the Grantor and the EPA Regional Administrator issued in accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from the Trust Fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor fails to provide such defense.

Section 20. Choice of Law. This Agreement shall be administered, construed, and enforced according to the laws of the State of New Jersey.

Section 21. Interpretation. As used in this Agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each Section of this Agreement shall not affect the interpretation of the legal efficacy of this Agreement.

In Witness Whereof the parties have caused this Agreement to be executed by their respective officers duly authorized and their corporate seals to be hereunto affixed and attested as of the date first above written.

Signature of Grantor /s/Robert H. Grasmere Title Robert H. Grasmere, Chairman Attest: /s/Michael J. Brinker, Jr. Michael J. Brinker, Jr., Executive Director Title Seal Signature of Trustee /s/Harry Stevenson Attest: Harry Stevenson, CPA Title Seal ++EP++ ATT I-7 FORM OF ACKNOWLEDGEMENT

State of New Jersey County of Union, ss.

Be It Remembered that on this 2nd day of August, 1989, in the County and State aforesaid, before me, the subscriber, a Notary Public authorized to take acknowledgements and proofs in said county and State, personally appeared Michael J. Brinker, Jr., to me known, who being by me duly sworn he is Executive Director of the Joint Meeting of Essex and Union Counties the grantor of the foregoing trust fund, who executed the foregoing instrument and he did acknowledge that he signed, sealed, and delivered the same by his act and deed for the uses and purposes therein expressed. ++EP++

EXH A-1 EXHIBIT A

AUTHORIZED SIGNATURES OF AUTHORIZED REPRESENTATIVE(S) OF GRANTOR

Grantor: Joint Meeting of Essex & Union Counties

500 South First Street Elizabeth, NJ 07202 Tel: 201-353-1313

Authorized Representative(s):

Name Position Signature Robert H. Grasmere Chairman /s/Robert H. Grasmere Michael J. Brinker, Jr. Executive Director /s/Michael J. Brinker, Jr.

++EP++

EXH B-1 EXHIBIT B

SIGNATURES OF EPA's AUTHORIZED REPRESENTATIVE(S)

Authorized Representative(s): ++EP++

ATT A-1 MARINE PROTECTION, RESEARCH, & SANCTUARIES ACT OCEAN DUMPING PERMIT

PERMIT NO. AND TYPE: II-NJ-022-SPECIAL

EFFECTIVE DATE: AUGUST 14, 1989 EXPIRATION DATE: MARCH 17, 1991 PERMITTEE: Mr. Michael J. Brinker, Jr. Executive Director Joint Meeting of Essex and Union Counties 500 South First Street Elizabeth, New Jersey 07202 WASTE GENERATOR(S): Same as above WASTE GENERATED AT: Same as above PORT OF DEPARTURE: Port of New York and New Jersey WASTE TRANSPORTERS: 106 Mile Transport Associates TOWING CONVEYOR(S): Weeks Stevedoring Co., Inc. General Marine Transport Corp. Moran Towing Transportation Co., Inc. Turecamo Coastal and Harbor Towing Corp. Eckloff Marine Corp. Reinauar Transportation Co. Bouchard Transportation Co., Inc. or any other transporter or towing conveyor contracted by the permittee and authorized by the EPA to perform such services.

This permit authorizes the transportation and dumping into ocean waters of certain materials pursuant to the Marine Protection, Research, and Sanctuaries Act of 1972, as amended 33 U.S.C. 1401-1444, (hereinafter referred to as "the Act"), regulations promulgated thereunder, and the terms and conditions set forth below. ++EP++

ATT A-2

Conditions:

1. All transportation and dumping authorized herein shall at

all times be undertaken in a manner consistent with the terms and conditions of this permit. The Permittee(s) named above shall hereafter be referred to as the permittee(s). The permittee, waste transporter, and towing conveyor designated above shall be liable for compliance with such terms and conditions. The liability of each is set forth in Condition No. 33. Compliance by any permittee, waste transporter, or towing conveyor with one or more but less than all of the conditions with which the permittee, waste transporter, or towing conveyor must comply shall not constitute a ground or grounds of defense in any proceeding against that permittee, waste transporter, or towing conveyor for violation of the provisions of this permit.

2. Any person who violates any provision of the Act, the

Regulations issued thereunder, or any term or condition of this permit shall be liable for a civil penalty of not more than $50,000 per day for each violation. Additionally, any knowing violation of the Act, Regulations or permit may result in a criminal action being brought with penalties of not more than $50,000 or one year in prison, or both.

3. a. Transportation to and dumping of waste, or any residue

of said waste that remains in the vessel after the dumping procedures described in Condition No. 24, at any location other than that authorized by this permit shall constitute a violation of the Act and the terms and conditions of this permit.

b. Transportation and dumping of any material or

constituent not identified in this permit, or in excess of that identified in this permit, or in excess of the criteria identified in the Regulations, unless specifically authorized by a written modification hereto, shall constitute a violation of the Act and the terms and conditions of this permit.

4. Nothing contained herein shall be deemed to authorize, in

any way, the transportation from the United States for the purpose of dumping into ocean waters, the territorial seas, or into the contiguous zone, of the following prohibited material:

a. High-level radioactive wastes. b. Materials, in whatever form, produced for radiological, chemical, or biological warfare. c. Persistent inert synthetic, or natural materials which may float or remain in suspension in the ocean. ++EP++ ATT A-3 d. Digester cleanout - defined as any material that is removed from a sludge digester through the cleaning of said digester. e. Storage tank cleanout - defined as any material that is removed from a storage tank through the cleaning of said storage tank. f. Medical wastes as defined in Section 3 (K) of the Act.

5. Any person who dumps medical wastes shall be liable for a

civil penalty of not more than $125,000 per day for each violation. Additionally, anyone who knowingly dumps medical wastes may be subject to criminal action being brought with penalties of not more than $250,000 or not more than 5 years in prison, or both, in accordance with Section 105 of the Act.

6. After notice and opportunity for a hearing, this permit

may be modified or revoked, in whole or in part, during its term for cause including, but not limited to, the following:

a. Violation of any term or condition of the permit. b. Misrepresentation, inaccuracy, or failure by the permittee or waste transporter to disclose all relevant facts in the permit application. c. A change in any condition or material fact upon which this permit is based that requires either a temporary or permanent addition to, reduction, or elimination of the authorized transportation or dumping including, but not limited to, changes in conditions at the designated dump site and newly discovered scientific data relative to the issuing of this permit. d. Failure to keep records, engage in monitoring and reporting activities, or notify appropriate officials in a timely manner of the transportation and dumping activities as specified in any condition of this permit.

7. This permit shall be subject to suspension by the EPA

Regional Administrator or his delegate if he determines that the authorized dumping has resulted, or is resulting, in imminent or substantial harm to human health or welfare or the marine environment. ++EP++

ATT A-4

8. The performance of any transportation or dumping

authorized by this permit, by any person, firm, or corporation other than the named permittee shall not relieve the permittee from full responsibility for compliance herewith, nor shall the existence of any contractual or other agreement with such person, firm, or corporation operate to relieve either party from responsibility for compliance with this permit or the Act or both.

9. The authority conferred by this permit may, at the

discretion of the EPA Regional Administrator or his delegate, be transferred to a waste transporter, or towing conveyor other than those named herein, provided that a request for such a transfer be made, in writing, by the permittee at least thirty (30) days prior to the requested transfer date.

10. If material which is regulated by this permit is

discharged due to an accident or an emergency to safeguard life at sea, in locations or in a manner not in accordance with the terms or conditions of this permit, the permittee shall make a full written report within ten (10) days to the Regional Administrator detailing the conditions of this accident or emergency and the actions taken. The owner or operator of the vessel shall notify EPA and the Coast Guard of the incident by radio, telephone, or telegraph immediately but not later than one (1) hour after occurrence of said incident.

With sixty (60) days of issuance of this permit, the permittee shall submit to EPA for approval a catastrophic spill contingency plan detailing steps to be taken for the prevention of and mitigation of environment impacts from a catastrophic spill.

11. Unless otherwise provided for herein, all terms used in

this permit shall have the meanings assigned to them by the Act or the Regulations issued thereunder.

12. The issuance of this permit does not convey any property

rights in either real or personal property, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of rights, nor any infringement of federal, state, or local laws or regulations, nor does it obviate the necessity of obtaining State or local assent required by applicable law for the activity authorized.

13. This permit does not authorize or approve the

construction of any onshore physical structures or facilities or the undertaking of any work in any navigable water.

14. Each waste transporter and towing conveyor shall at all

times maintain in good working order and operate as efficiently and as safely as possible, all facilities, including vessels, used by the waste transporter or towing conveyor in achieving compliance with the terms and conditions of this permit. ++EP++

ATT A-5

All vessels used in achieving such compliance shall be certified as meeting U.S. Coast Guard standards for seaworthiness and safety.

15. This permit, or a true copy thereof, shall be placed in a

conspicuous place in each scow, boat, barge, towed vessel, self- propelled vessel or tugboat that will be used to transport, dump, or transfer the waste described in this permit.

16. Every scow, boat, barge, towed vessel, self-propelled

vessel or tugboat, engaged in the transportation of wastes described in this permit shall have its name and number painted in letters and numbers at least fourteen (14) inches high on both sides of the scow, boat, barge, towed vessel, self-propelled vessel or tugboat. The name and number shall be distinctly legible at all times, and no scow, boat, barge, towed vessel, self-propelled vessel or tugboat not so marked shall be used to transport, dump, or transfer such material.

17. The permittee, waste transporter(s), and towing

conveyor(s) shall allow the EPA Regional Administrator, the Commander of the U.S. Coast Guard Third Distruct, appropriate State representatives and/or their authorized representatives including authorized contractors, the following:

a. To enter into, upon, or through the permittee's or waste transporter's premises, vessels, or other premises or vessels under the control of the permittee or waste transporter where, or in which, a source of material to be dumped is located or in which any records required to be kept under the terms and conditions of this permit or the Act. The vessels include any towed vessel, tugboat, barge, scow, boat, or self-propelled vessel. b. To have access to and copy any records required to be kept under the terms and conditions of this permit or the Act. c. To inspect any monitoring equipment or monitoring method required in this permit. d. To sample or require that a sample be drawn of any of the materials discharged or to be discharged. e. To inspect any dumping and navigation equipment installed on board any towing vessel, tugboat, barge, or self-propelled vessel utilized in ocean dumping activities authorized under this permit. ++EP++ ATT A-6

18. a. As part of the Ocean Dumping Surveillance System

(ODSS) the waste transporter shall allow the Coast Guard to install on each towed vessel or self-propelled vessel departing port for ocean dumping activities under this permit, a remote unit (black box), hull transducers, hull inserts, antennas and all necessary cable and connections and any other equipment or devices used to facilitate the operation of the ODSS. The waste transporter(s) is required to coordinate installation of the ODSS with the Coast Guard and is responsible for arranging dry docking of the vessels.

The waste transporter(s) is also responsible for :

i. supplying and mounting the brackets for the cables

and antennas.

ii. making all necessary waterproof bulkhead holes for

cables.

iii. mounting the hull inserts in the hull into which the

hull transducers are installed.

iv. routing the cable from the transducers and antenna to

the remote unit.

v. providing an AC power source (Circuit Panel) to the

remote unit.

b. The ODSS shall be installed and tested no later than 30

days before any dumping may occur. The permittee shall not use nor the waste transporter allow a towed vessel or self-propelled vessel to depart on a dumping mission without such equipment installed and tested unless a written authorization from the Regional Administrator or his delegate is first obtained.

c. The waste transporter shall maintain continuous AC

electrical power to the remote units and dump sensors at all times, whether at sea or in port.

d. The waste transporter and towing conveyor shall not

alter or remove the remote unit, hull transducers, connections, antennas or any other part of the ODSS, nor shall the waste transporter or towing conveyor in anyway interfere with the operation of said system.

19. Description of Waste - During the term of this permit,

the type and quantity of waste permitted for transportation for the purpose of ocean dumping shall be in accordance with the following: ++EP++

ATT A-7

Type of Waste - Digested or otherwise stabilized municipal sewage sludge.

Permittee Dry Tons Annually of Wet Tons Annually of Waste Waste Joint Mtg. 13,293 400,400

No amount of waste in excess of either the wet tonnage or dry tonnage shown above shall be ocean dumped.

20. Disposal Site - Transportation for the purpose of ocean

dumping shall terminate at, and waste disposal shall be confined to, the Deepwater Municipal Sludge Dump Site (DMSDS). The area of the DMSDS is described below and on each navigational overlay.

Latitude: 38decree 40'00"N to 39decree 00'00" N Longitude: 72decree 00'00"W to 72decree 05'00" W

21. Authorized Transport - The waste transporter shall use

only the following towed vessel(s)/self-propelled vessel(s) for dumping of wastes authorized under this permit unless additional vessel(s) are authorized by EPA in writing after receipt of a written request by the waste transporter. ++EP++

ATT A-8

106-Mile Transport

Weeks 701 *

Weeks 702 *

Eileen *

Kimberly Ann *

Lisa *

Maria *

Morris J. Berman

Leo Frank *

Princess B * These vessels can discharge at the interim discharge rates

listed in Table 2, based upon the location and number of

discharge ports, wake characterization, and dispersion

characteristics.

22. The master of the ocean dumping vessel (ie., tugboat or

self-propelled vessel) shall submit an Ocean Dumping Notification Form (ODNF) which shall contain a navigational overlay of the dumping vessel's trackline during the dumping operation and all other information required on the ODNF (see Attachment No. 1). The navigational overlay shall clearly show the times and positions of the vessel at critical points (i.e., entry and exit from the dump site; beginning and end of dump, and points every two (2) hours along the discharge path). The overlay shall be signed and dated by the vessel master. The master of the vessel shall also be required to certify whether or not discharge requirements found in Condition No. 24 were met. The original ODNF along with the original Manifest form (s) (see Condition No. 27 b.) shall be forwarded within 72 hours after completion of the voyage to the EPA. Copies of the ODNF shall also be sent to the Coast Guard, waste transporter, and the permittee(s) whose waste was dumped, at the same time that the original is forwarded to the EPA.

23. The waste transporter shall install and utilize during

the course of each nighttime dumping operation a spotlight, which shall be of sufficient intensity to illuminate the discharge immediately astern of the dumping vessel. The spotlight shall be sufficiently elevated so as to give ample coverage to the wake of the vessel, while at the same time maintaining the direction of the light beam vertically into the water column. The spotlight shall be fixed firmly into position and shall be installed on the vessel so as not to interfere with or to be confused with any other required navigational lights.

24. Discharge Rates - Discharge rates for the sewage sludge

are based on the dilution required to meet the limiting permissible concentration (LPC) at the 4 hour initial mixing period. The required dilution is based on the LC50 of the most sensitive marine species tested and an application factor of 0.01. Dilutions that will occur are proportional to vessel speed. The nomographs shown in Figures 1 and 2 will be used to determine the discharge rate of the sewage sludge.

Required dilutions and discharge rates for each permittee using the DMSDS are initially established as listed in Tables 1 and 2 and dependent upon vessel. ++EP++

ATT A-9 TABLE 1. MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 Kn TABLE 2. INTERIM MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 Kn

TABLE OMITTED ++EP++

ATT A-10 FIGURE 1. NOMOGRAPH FOR DISCHARGE RATES

FIGURE OMITTED ++EP++

ATT A-11 FIGURE 2. NOMOGRAPH FOR INTERIM DISCHARGE RATES

FIGURE OMITTED ++EP++

ATT A-12

Based upon EPA's evaluation of the sludge characterization data required to be submitted by the permittee under permit Condition No. 25, discharge rate revisions may be issued on a quarterly basis. For toxicity based LPCs, the test species with the lowest LC50 and an application factor of 0.01 will be used to determine the required dilution. Chemical compounds in the liquid phase of the sludge may also be evaluated for establishing the required dilutions.

EPA will permit certain vessels (See Condition No. 21) to utilize the interim discharge rates specified in Table 2 until August 14, 1990, provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurements of the wake-induced initial mixing (0-5 min.) under an EPA approved protocol by May 14, 1990 to confirm the dispersion characteristics inherent in the rates. Failure to submit such a report by May 14, 1990 shall preclude the use of the interim discharge rates specified in Table 2 beyond that date. Upon EPA's analysis and written acceptance of such field measurements, Figure 2 (or an appropriate adjustment) may continue to be used to determine the discharge rates for such vessels beyond August 14, 1990. Under no circumstances shall a maximum discharge rate of 15,500 gallons per minute be exceeded.

Permittees may combine sludges from different treatment plants or from different sewerage authorities into single vessel loads. The discharge rate for such a vessel is established by the most toxic sludge loaded into the vessel. However, if the permittee(s) demonstrates to EPA that vessel loads are homogeneously mixed, the discharge rate for such combined vessel loads may be based on a weighted-average required dilution for the sludges in such vessels upon written approval from EPA.

Dumping Procedures

Sewage sludge shall be discharged within the DMSDS. Discharge shall occur while the dumping vessel is moving at a speed of not less than 3 knots over the ground along the appropriate discharge tracklines as shown in Figure 3. The first trackline, delineated by lanes A-B in Table 3, and as shown on Figure 3 shall be utilized by NYCDEP and NCDPW. The second trackline, delineated by lanes C-D in Table 3, and as shown on Figure 3 shall be utilized by the remaining permittees. Any vessel that can not enter its own designated trackline because of traffic congestion within its trackline, may enter into the other designated trackline only under the following conditions: ++EP++

ATT A-13 Deepwater Municipal Sludge Dump Site

FIGURE OMITTED ++EP++

ATT A-14

1. The vessel can not enter its own designated trackline without

violating the permit provisions on allowable vessel spacing.

2. There is no more than one vessel in the other trackline.

3. The vessel in no way inhibits the movement or progress of any

other vessel inside the trackline or causes any other vessel to wait before entering the trackline.

4. The vessel shall at all times yield right-of-way to all other

vessels in the trackline.

5. Should the vessel in any way or at any time inhibit the progress

or movement of any other vessel, including but not limited to; causing another vessel to discharge at a slower vessel speed than it would have otherwise traveled at, or by causing another vessel to wait outside of its own designated trackline, then said vessel shall immediately cease discharging and shall exit the site as soon as possible.

The track of the dumping vessel during discharge shall be limited to within one-quarter nautical mile of either side of the discharge trackline. No discharge shall occur within one-half nautical mile of the DMSDS's boundaries.

TABLE 3. DESIGNATED DISCHARGE TRACKLINES

TABLE OMITTED

The turns at the end of each trackline shall not begin until the dumping vessel has reached the end of the trackline. During the turn, the track of the dumping vessel shall not extend more than one-half mile beyond the end of the trackline.

After dumping is completed and the vessel discharge valves are secured, the vessels may exit the dumpsite using any convenient route. The exiting vessel must yield right of way to all vessels dumping or about to enter the dumpsite. ++EP++

ATT A-15

Vessels which are discharging must maintain a minimum 2 hour separation between them. They may not follow any discharge trackline any sooner than 2 hours after the trackline was made.

Allowable Discharge Rates during High Energy Conditions

Permittees will be allowed to discharge at five times their normal rates while sustained wind conditions within the designated site are at or above "Beaufort Force 5", as listed in Appendix No. 7, provided that in no case shall discharge rates exceed 15,500 gallons per minute.

In order to utilize this provision the towing vessel or self propelled vessel shall have installed and maintain appropriate wind speed instrumentation. A description of such instrumentation shall be submitted by the permittee to EPA within 30 days of permit issuance.

EPA will permit all vessels to utilize the allowable discharge rates during high energy conditions until August 14, 1990 provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurments of dispersion at "Beaufort Force 5" wind conditions under an EPA approved protocol by May 14, 1990 to confirm such increased dispersion. Failure to submit such a report by May 14, 1990 shall preclude the use of the above-mentioned five-fold increase in discharge rates beyond that date. Upon EPA's analysis and written acceptance of such field measurements, the five-fold increase (or an appropriate adjustment) may continue to be used beyond August 14, 1990.

25. MONITORING REQUIREMENTS - Several monitoring activities,

as prescribed by the EPA Monitoring Plan for the Deepwater Municipal Sludge Dump Site are required of the permittee. Monitoring activities will be conducted under Tier 1, Tier 2, and Tier 3 of the disposal site monitoring plan. Sewage sludge characterization data required under Tier 1 of the monitoring plan shall be submitted to EPA on a regular basis by each permittee. Monitoring activities required under Tier 2 and Tier 3 shall be implemented by the permittee. Monitoring activities are described in the EPA document "Permittee Monitoring Requirements: 106-Mile Deepwater Municipal Sludge Disposal Monitoring Program".

Under Tier 1 of the monitoring plan, the permittee is required to submit sewage sludge characterization data. Tier 2 monitoring plan activities will include measurement of upper ocean currents and water column structure to characterize sludge dispersion at and near the disposal site. Activities under Tier 3 will include monitoring of water mass movement from the disposal site for evaluation of large scale water movement.

Within 45 days of permit issuance, the permittee shall submit to EPA a written quality assurance plan for implementation of Tier 2 and 3 activities. ++EP++

ATT A-16

The permittee shall initiate Tier 2 and 3 activities within two and three months respectively of EPA approval of said quality assurance plan.

TIER 1 MONITORING REQUIREMENTS

Sludge characterization

Sample collection: For all characterization studies,

representative sludge samples will be collected during vessel

loading. Samples will be collected from a point on the

discharge side of the pump delivering sludge from a digester

or holding tank to a vessel being loaded for disposal at the

disposal site. A flow-weighted composite sample, collected

during the entire loading procedure, is required.

Permittees using an individual vessel to dispose of sludge

from more than one treatment plant are required to

characterize a sample composited from samples drawn from each

compartment of the barge. Analysis of individual compartments

shall be required to demonstrate the homogeneity of the

sludge in the vessel, if the permittee chooses to request EPA

approval to calculate disposal rates on the weighted-average

required dilution of sludge entering the vessel.

Sample collection frequency: Sample shall be collected and analyzed

at the following frequency:

Monthly - Parameters required to evaluate and set discharge rates.

1. 96-hour acute bioassay tests. The permittee may conduct

quarterly bioassay tests at its option. Discharge rates shall be reduced based upon one quarterly sample, however test results from two consecutive quarters shall be required in order for discharge rates to become less restrictive.

2. Conventional parameters.

3. The following conventional pollutants: copper, lead,

cadmium, and mercury in both the suspended particulate phase and the liquid phase of the sludge.

4. Chemical analysis and solid phase toxicity tests may be

required on settleable solids, if settleable solids are found in the sludge.

Quarterly - Parameters required for evaluating loadings at the

disposal site. ++EP++

ATT A-17

1. Organic Priority pollutant compounds for which marine

water quality criteria exist.

2. Conventional and nonconventional pollutants.

3. Both the suspended particulate and liquid phase shall be

analyzed.

4. Floatable materials.

5. Volume of sludge generated and transported to the

designated disposal site.

Semi-annually - Compounds excluded by the London Dumping Convention

and organic priority pollutants.

1. Radioactivity.

2. Full organic priority pollutant scan.

3. These tests shall be conducted only on the suspended

particulate phase unless settleable solids are found in the sludge. Chemical analysis on settleable solids may be required, if settleable solids are found in the sludge.

Analytical requirements: The chemical, physical, and microbiological parameters that shall be reported by the permittee for samples collected shall include the following:

Parameters:

Conventional Parameters

Biological Oxygen Demand Chemical Oxygen Demand

Total Residue Total Organic Carbon Total Filterable Residue Specific Gravity Total Nonfilterable Residue pH Settleable Solids Conventional and Nonconventional Pollutants

Total Coliform Bacteria Arsenic

Fecal Coliform Bacteria Cadmium Clostridium perfringens Chromium, hexavalent Fecal streptococcal Chromium, total Total Phosphate-Phosphorus Copper Total Kjeldahl-Nitrogen Lead Ammonia-Nitrogen Mercury Nitrate-Nitrogen Nickle Oil and Grease Selenium Total Petroleum Hydrcarbons Vanadium Cyanide Phenols Zinc ++EP++ ATT A-18 Radioactivity

Gross Alpha

Gross Beta Radium-226 Radium-228 Priority Pollutants

Sample analysis: All toxicity testing, physical characterization,

and chemical characterization will be performed on the same sample.

All tests shall be completed within EPA approved holding times.

Tests of the suspended particulate phase and liquid phase of the

sludge are required as defined in the Sample Collection Frequency

section above.

Toxicity tests: 96-hour bioassay tests shall be conducted on the suspended particulate phase of the sludge using the test organisms Menidia menidia and Mysidopsis bahia and/or any substitute organism designated by EPA to be more appropriate. LC50 and 95 percent confidence interval shall be calculated by one of the following methods: binomial method, trimmed Spearman-Karber method, moving average method, or probit method. Justification for method selection must be included with each data package submitted to EPA. The LC50 shall be reported in mg/L of sludge and as the percentage of the whole sludge. Toxicity test shall be conducted under the guidance and procedures established by:

APHA, 1985, Standard Methods for the Examination of Water and

Wastewater, 16th Edition. American Public Health Association,

Washington, D.C.,

EPA, 1985. Methods for Measuring the Acute Toxicity of

Effluents to Freshwater and Marine Organisms, 3rd Edition,

(EPA/600/4-85-013),

EPA. 1987. Bioassay Procedures for the Ocean Disposal Permit

Program. EPA 600/9-78-010. U.S. Environmental Protection

Agency, Washington, D.C., or in documents otherwise specified

by EPA.

Physical and chemical characterizations: Analysis of conventional parameters and conventional pollutants shall be conducted by; ++EP++

ATT A-19

1) Analytical procedures specified in EPA's Permittee Monitoring

Requirements document or,

2) Test procedures selected by the permittee and approved by EPA.

Method detection limits and reporting units: Method detection

limits required for the physical and chemical characterization

listed in the following publications shall be required:

ASTM. 1985. Standard Methods for the Examination of

Wastewater. American Public Health Association. 16th edition,

Washington, DC.

Test Methods for Evaluating Solid Waste. 1986. United States

Environmental Protection Agency Office of Solid Waste and

Emergency Responses, SW 846, 3rd Edition, Washington, DC.

Methods for chemical Analysis of Water and wastes. 1979.

United States Environmental Protection Agency. Environmental

Monitoring and Support Laboratory. EPA-600/4-79-020.

Specific detection limits are summarized in EPA's Permittee

Monitoring Requirements document.

Reporting units for all physical and chemical characteristics shall

be in mg/L of sludge or as appropriate to the specific test.

Conversion factors for calculating results on dry weight basis

shall be included with all data.

Methods for floatable material will be specified by EPA.

Sample replication: Replicate analysis of the quarterly chemical

monitoring data is required. Replication of the monthly data is

required on at least two of the twelve samples analyzed each year.

Reporting requirements: All data shall be submitted to EPA no later

than 45 days following sample collection. Laboratory quality

control data shall be submitted with all analytical and toxicity

data. A statement verifying that the data has been audited and

found to be accurate shall be included with each data package.

Quality assurance plan: The permittee shall file with EPA a written

quality assurance plan covering all sampling and testing

procedures. The quality assurance plan shall follow the format

described in EPA 556/2-88-001, "Guide for Preparation of Quality

Assurance Project Plans for the National Estuarine Program". The

quality assurance plan must be filed with EPA within 45 days of

permit issuance. ++EP++

ATT A-20

Monitoring may not begin before the quality assurance plan is

submitted and approved by EPA. Any change requested from the

testing or analytical procedures listed in the approved quality

assurance plan shall be submitted to EPA. Changes in approved

testing procedures must be approved by EPA in writing prior to

implementing the changes. Testing laboratories: Within 45 days of

permit issuance the permittee shall file, for approval by EPA, the

name and address of the laboratory(s) designated to conduct

testing. Any change in the approved testing laboratory shall be

immediately reported to EPA in writing. Any laboratory employed for

the purpose of performing the analyses and testing shall maintain a

viable analytical quality control program. This program shall

include:

1) Use of EPA Approved Methodologies as described in the

Permittee Monitoring Requirements Document.

2) Use of EPA approved sample preservation techniques and

holding times specified in the analytical and testing methods

as prescribed in the EPA manual Test Methods for Evaluating

Solid Waste. 1965 (SW-846).

3) Routine use and documentation of intra-laboratory quality

control practices as recommended by the EPA manual Handbook

for Analytical Quality Control in Water and Wastewater

Laboratories. These practices shall include use and

documentation of internal quality control samples, conduct

audits, and data/report audits.

4) The laboratory facilities, data, records, and quality

control records are subject to periodic inspection by EPA

personnel.

5) EPA may require analysis of quality control samples by any

laboratory employed for the purpose of compliance with this

condition. Upon request, the permittee generator shall

provide EPA with the analytical results from such samples.

TIER 2 MONITORING REQUIREMENTS

Permittee(s) shall be responsible for collecting information

on water column structure and currents. Specifications for

the deployment positions and navigational requirements for

these measurements are included in EPA's Permittee Monitoring

Requirements document. ++EP++

ATT A-21

Surface current shear in the ocean at the disposal site shall

be obtained from expendable current meter (XCP) profiles.

XCP equipment shall be provided to one transport company.

Acquisition of data from this probe need not be performed off

the same barge.

XCP deployments shall be from a manned barge on a weekly

basis.

Data acquired by this measurement shall be sent to EPA within

7 working days from collection.

Meteorological observations shall be required for each

deployment of the XCP.

Permittees shall be required to perform additional Tier 2

monitoring to determine the nearfield fate and short-term effects

of sludge dumping at the Deepwater Municipal Sludge Dump Site at

the direction of EPA.

TIER 3 MONITORING REQUIREMENTS

Permittees shall be responsible for acquisition of data required to

determine:

Water mass movement from the Deepwater Municipal Sludge Dump

Site.

Evaluation of large-scale water movements.

Determine settling of sludge particles in the field.

Surface drifters:

Permittees shall launch one surface drifter per week from a

manned vessel dumping sludge within the designated disposal

site for tracking by ARGOS satellite.

Data shall be submitted to EPA for analysis.

The technical activity involved in deploying drifters shall

be conducted by vessel crews upon training by EPA.

EPA may modify the drifter program based upon the data

received.

26. In the event that any dump site montioring, or plant

inspection, or any surveillance activities reveal that floatables are being ocean dumped, or that a likely probability exists that floatables are being ocean dumped, the Regional Administrator or his delegate may require the permittee to screen each vessel load of waste for floatables before any dumping of said waste shall be allowed. ++EP++

ATT A-22

27. Waste Manifest System a. Inspection -The permittee is

required to maintain inspectors and is required to have one or more inspectors present befor any of the permittee's waste is loaded onto a vessel. If a transfer of the permittee's waste occurs at a point other than at dock side of a permittee, the waste transporter shall provide an independent inspector, approved by EPA, to observe and record the transfer operation. Responsibilities and duties of the inspectors, for the purposes and terms of this permit condition, are described in Attachment No. 2.

All vessels shall be maintained with a system of sequentially numbered EPA seals which will be provided to the permittee by EPA. This system shall require that all discharge valves on all feeder vessels, with the following exception, be permanently sealed with approved EPA seals. Those valves that cannot be permanently sealed, due to their use for loading and unloading operations, shall be re-sealed by the inspector immediately upon completion of each transfer (loading or unloading). When ocean going vessels receive waste, all discharge valves shall be sealed prior to loading and all other valves shall be sealed immediately upon completion of each loading operation.

For the purposes and terms of this permit condition a feeder vessel is defined as any vessel that is used to transfer waste from one location to another. An ocean going vessel is defined as any vessel that is authorized to dispose of waste at the DMSDS. Any vessel that can be used as both a feeder vessel and an ocean going vessel shall at all times be considered an ocean going vessel.

No transfer of waste shall occur between a permittee and feeder vessel or ocean going vessel, or feeder vessel and ocean going vessel, if any seal is broken or missing, unless broken by the inspector to allow for such transfer or unless broken by the waste transporter on an ocean going vessel as described in the following paragraph. If any seal(s) is broken or missing, the vessel shall remain at dock side or transfer point and the inspector shall immediately notify EPA and/or the Coast Guard, and the permittee.

Prior to leaving for the DMSDS, all ocean going vessels shall have all of their valves sealed. Thereafter, no seal on the ocean going vessel shall be broken until said vessel enters the DMSDS, at which time the waste transporter shall break only those seal(s) necessary for the discharge operation. If it is determined that any seal(s) has been broken prior to such time, the vessel shall not be permitted to discharge any waste and shall immediately return to port unless permitted by the Coast Guard or EPA to proceed. ++EP++

ATT A-23

The waste transporter shall provide for safe access i.e., gangplank with safety rails, mechanically secured to either the dock or barge to the barge from dock side. When two or more barges are moored side-by-side at dock side the waste transporter shall provide for safe access i.e., gangway with safety rails, mechanically secured to either of the barges from barge to barge.

b. Waste Manifest Forms - Each time a waste transfer occurs a record of the transfer must be maintained by the permittee's inspector (when transfer occurs at dock side) and as applicable the independent waste transporter's inspector. The time of loading/unloading, location, arrival and departure time, and quantity of waste transferred as well as other required information shall be clearly indicated on the Inspector form (see Attachment No. 3). Such forms shall be submitted to EPA (original form) and the Coast Guard within 3 business days after completion of each loading or transfer operation.

In addition, the inspector shall record information on the transfer operation on the Manifest Form Attachment No. 4, retain a copy for his records and pass on such form to the vessel operator. The vessel operator shall surrender such form to the inspector at the next transfer point for the inspector's use. This procedure shall be repeated until the last transfer point, at which time the inspector recording the last transfer shall return the form to the vessel operator, who shall surrender the form to the master of the vessel on the ocean going vessel. Said form(s) (i.e., Attachment No. 4) shall then be attached to the ODNF and submitted to the EPA at the same time as the ODNF. Additionally, the waste transporter (vessel operator) shall also maintain a monthly log of the seal numbers and other information on the attached EPA form. This form (see Attachment No. 5) shall be maintained on each vessel and submitted to EPA (original form) and the Coast Guard within 10 calendar days of the end of each month.

c. Accountability - Each permittee and each waste transporter shall maintain a record that shows the date upon which each of the required forms, under this condition, was mailed by said permittee and said waste transporter to the EPA and the Coast Guard. Said record will be maintained on a monthly basis and shall be submitted to the EPA and the Coast Guard within 15 calendar days of the end of each month. All broken seals shall be returned to the EPA at the same time as the above mentioned record along with a listing of the seal identification numbers for the returned seals. ++EP++

ATT A-24

28. Notice to Regulatory Agencies - The waste transporter

shall provide telephone notification of sailing to the Captain of the Port (COTP) at 212-668-7936 not later than two (2) hours prior to the estimated time of departure for the dump site designated in Condition No. 20. The waste transporter shall confirm the exact time of departure within thirty (30) minutes of the actual departure time, and shall immediately notify the COTP upon any changes in the estimated time of departure greater than one (1) hour.

The following information shall be provided in the notification of sailing.

(1) Permit number. (2) Name of the towed vessel and tugboat, or self-propelled vessel. (3) Name of the transporter. (4) Type and quantity of waste being transported. (5) Place of departure. (6) Location of dump site. (7) Time of departure. (8) Estimated time of arrival at the dump site. (9) Estimated time of departure from the dump site. (10) Estimated time of return to port.

29. a. No vessel shall transport waste to the DMSDS for the

purpose of dumping said waste unless a shiprider is on board, unless waived by the EPA Regional Administrator or his delegate. Said shipriders shall be approved by EPA and shall be supplied by the permittee.

b. The shiprider shall be provided with quarters

including, at least, a bunk solely for his use plus access to sanitary toilet facilities. These quarters, as well as the shiprider's subsistence while on board, shall be provided by and shall be at the expense of the waste transporter. Further, should the return port be different from that of the port of departure, the shiprider shall be provided transportation to the port of departure at the expense of the waste transporter. The shiprider shall be treated courteously and afforded free and immediate access to all navigational capabilities on the vessel which can provide information on position, course speed, depth of water, bearing, etc., and to communications equipment.

c. The attached shiprider form (see Attachment No. 6)

shall be completely filled out, signed and dated by the shiprider and shall be mailed to EPA within 72 hours after the completion of the voyage.

30. a. The waste transporter shall maintain and submit to

EPA, the Captain of the Port (COTP) and the permittee(s) on a monthly basis Attachment No. 8 which identifies the following information: ++EP++

Page 25 (1) Name of each vessel that departed port during the month and dumped waste at the designated dump site. Any vessel that commenced discharge operations at anytime during the month shall be reported in that month, regardless of when said discharge operation was completed. (2) Date and time of departure of each vessel. (3) COTP reference number for each vessel mission. (4) Quantity of waste (gallons, wet tons) from each permittee (s) dumped by each vessel during each vessel mission. (5) Date and time upon which each vessel commenced discharge operations. (6) Date upon which each ODNF was mailed to EPA. b. The permittee shall submit to EPA, on a monthly basis

Attachment No. 9 which identifies the following information:

(1) Name of each vessel upon which any waste generated from permittee's facility was transferred to, at anytime during the month. (2) Date and time that permittee commenced transferring waste to each vessel. Any waste transfer that commenced at anytime during the month, shall be reported in that month, regardless of when said waste transfer was completed. (3) Date and time that permittee completed transfer of waste to each vessel. (4) Quantity of waste (gallons, wet tons, dry tons) loaded onto each vessel. c. Each report required by this condition shall be

received by EPA and all other named parties, within 10 days of the end of the reporting period. First reporting period begins August 15, 1989, and ends on August 31, 1989. The first report shall be received by EPA on or before September 10, 1989. The second reporting period begins September 1, 1989, and ends on September 30, 1989. The second report shall be received by EPA on or before October 10, 1989 and such reporting shall continue monthly thereafter.

31. Reports and Correspondence - All reports and related

correspondence required by the permit to be submitted to EPA shall be addressed as follows:

U.S. Environmental Protection Agency

Water Management Division ++EP++

ATT A-26

All reports and related correspondence required by the permit to be submitted to the U.S. Coast Guard shall be addressed as follows:

U.S. Coast Guard

Captain of the Port

Governors Island

New York, New York 10004

32. Liability - The permittee is liable for compliance with

all Conditions, including Attachments, contained in this permit.

a. The permittee and waste transporter shall be jointly

and severally liable for compliance with all Conditions, including Attachments of this permit with the exception of the following: Condition Nos. 25 and 30 (b).

b. Any person owning or operating a towing vessel employed

for the purposes of the activities authorized by this permit, shall be jointly and severally liable together with the permittee and waste transporter for compliance with all Conditions including Attachments of this permit with the exception of the following: Condition Nos. 23, 25, 26, 29 (c), and 30.

By authority of Administrator

United States Environmental Protection Agency:

William J. Muszynski

Acting Regional Administrator

Signed this day of , 1989: ++EP++

ATT A-27 ATTACHMENT NO. 1, 2, 3, 4, 5, 6, 7, 8, AND 9 ARE BLANK FORMS. ++EP++

JOINT MEETING ESSEX & UNION

DOC 02 OF 02

Consent Decree

02-90-C006

MPRSA

MUNI

19891204

19891204

NJD087277661

JOINT MEETING

ELIZABETH, NJ

89-3339

02

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA, and

STATE OF NEW JERSEY, Plaintiffs,

v.

JOINT MEETING OF ESSEX AND UNION COUNTRIES Defendant.

CIVIL ACTION NO. 89-3339 HAA

CONSENT DECREE

WHEREAS, the United States and the Environmental Protection Agency ("EPA"), the State of New Jersey ("the State"), on behalf of the New Jersey Department of Environmental Protection ("NJDEP") and the Joint Meeting of Essex and Union Countries ("the Joint Meeting" or "the Defendant") enter into this Consent Decree to ensure the phasing out and termination of ocean dumping and the transportation for the purpose of ocean dumping, of sewage sludge pursuant to the Ocean Dumping Ban Act of 1988 ("the Ban Act"), P.L. 100-688; and

WHEREAS, the New Jersey Ocean Sludge Dumping Elimination Act, L. 1988, C.57 supplementing the New Jersey Water Pollution Control Act, N. J.S.A. 58 10A-1 et seq. ("the New Jersey Ban Act") ++EP++

requires that ocean dumping of sludge by New Jersey municipal treatment works be terminated by March 17, 1991; and

Page 2

WHEREAS, the United States, EPA, the State and the Defendant have each consented to the making and entering of this Consent Decree, without trial or adjudication of any issues of fact or law and without this Decree constituting any admission by any party with respect to any such issues, and the Court having considered the matter and being duly advised, and it being in the public interest, it is hereby ORDERED and DECREED as follows:

JURISDICTION

I. This Court has jurisdiction over the subject matter and over the parties hereto under 28 U.S.C. Section 1345, and 33 U.S.C. Section 1415. The Court finds that it has jurisdiction and that Plaintiffs' complaint states a claim upon which relief may be granted.

APPLICATION AND BINDING EFFECT

II. The provisions of this Consent Decree ("Decree") shall apply to and be binding upon all parties to this Decree, their officers, directors, agents, servants, employees, successors, assigns, contractors, and all persons, firms and corporations in active concert or participation with them. Prior to any transfer of ownership or operation of the Defendant's publicly owned treatment works, the Defendant shall give written notice of this Decree to any successor(s) in interest and shall simultaneously notify, in writing, EPA and the State that such notice has been given to each successor in interest. ++EP++

Page 3 PHASE OUT OF OCEAN DUMPING

III. The Defendant shall cease ocean dumping of sewage sludge by March 17, 1991. Until cessation of ocean dumping and final implementation of the alternative system of sewage sludge management, the Defendant shall comply with all requirements of this Decree and of any final ocean dumping permit that may be issued under the Marine Protection, Research, and Sanctuaries Act of 1972, as amended, 33 U.S. C. 1401 et seq. ("MPRSA" or "the Act"). No ocean dumping or transportation for the purpose of ocean dumping of sewage sludge shall be conducted after August 14, 1989, unless prior to such activity the Defendant has obtained a new, effective, final ocean dumping permit under Section 102 of the MPRSA, 33 U.S.C. 1412. Defendant shall comply with all terms and conditions of any final permit issued pursuant to the MPRSA during the pendency of this Decree. In the event that any part of the final permit is challenged or stayed, the Defendant shall comply with all terms and conditions of the draft final permit, attached hereto and incorporated herein as Attachment A, during the pendency of such challenge. In any permit enforcement proceeding Defendant reserves all defenses available to it at law, other than defenses relating to the lawfulness of the permit and of its terms and conditions. Should ocean dumping continue under this Decree beyond the effective term of the permit, and no new permit be issued, the terms and conditions of the most recent permit be issued, the terms and conditions of the most recent permit issued to the Defendant ++EP++

after May 31, 1989, shall continue to be complied with as conditions of this Decree.

Page 4 IV. SCHEDULES FOR IMPLEMENTATION

OF AN ALTERNATATE SYSTEM

IV.A. The Joint Meeting shall implement the following plan for an alternate system for the management and disposal of sewage sludge transported or dumped by the Joint Meeting: on site dewatering of its sewage sludge, landfilling of its sludge on an interim basis followed by incineration of its sewage sludge as a long term alternative, as described in its April, 1989, submission to the State and as determined by the State to be acceptable.

IV.B. In implementing its plan for an alternative system of sewage sludge management and disposal, Joint Meeting shall comply with the following schedule:

1. Completion of detailed sludge management plan and submittal of completed plan for selected alternative system by April 30, 1989.

2. Receive determination from New Jersey Department of Environmental Protection for the selected alternative system identified in the sludge management plan by July 7, 1989.

3.* Submit complete air permit application by November 30, 1990.

4. Receive draft determination on air permit from New Jersey Department of Environmental Protection by May 30, 1991 and final determination by October 31, 1991.

5. Establishment of local pretreatment limits as necessary by February 10, 1995.

6. Advertise or solicit proposals for preparation of final engineering designs and related specifications for the selected alternative system by November 30, 1991. ++EP++

Page 5

7. Award contract for preparation of final engineering designs and related specifications for the selected alternative system by January 30, 1992.

8. Complete preparation of final engineering designs and related specifications for the alternative system selected by October 31, 1993.

9.* Submit application for the Treatment Works Approval Stage II for the alternative system selected by October 31, 1993.

10. Receive determination on Treatment Works Approval Stage II from New Jersey Department of Environmental Protection for the alternative system selected by January 31, 1994.

11. Advertise for bids for procurement of necessary equipment and construction of necessary facilities for the alternative system by May 10, 1994.

12. Receive bids for selected alternative system by August 10, 1994.

13. Award contracts for procurement of necessary equipment and construction of necessary facilities for the alternative system by October 10, 1994.

14. Commence on-site construction activities for the alternative system selected by February 10, 1995.

15. Complete all construction related activities necessary for shakedown and preliminary operation by August 10, 1997.

16. Commence testing of the alternative system by August 10, 1997.

17. Complete testing of alternative system and commence full operation of alternative system by February 10, 1998.

18. Achieve compliance with all sludge quality criteria requirements for the selected long term sludge management alternative by February 10, 1998.

* The State will determine within 30 days of a permit application, whether a permit application is satisfactory for purposes of determining compliance with the milestones set forth in paragraph IV of this Decree. Notwithstanding the fact that the permit application was satisfactory at the time it was submitted, the State reserves the right to require additional information while reviewing the permit application in order to develop a draft determination on the permit or a draft permit with appropriate extensions to subsequent milestones being made in ++EP++

accordance with paragraph X of this Decree, where defendant's application was satisfactory.

Page 6

IV.C. Joint Meeting shall comply with the following schedules in implementing its interim measures to cease ocean disposal of sewage sludge:

1. Complete final design of sludge dewatering facilities by October 5, 1989.

2. Submit complete construction permit applications for sludge dewatering facilities by June 23, 1989.

3. Receive determination for the Treatment Works Approval Stage II from New Jersey Department of Environmental Protection by August 7, 1989.

4. Advertise for bids for sludge dewatering facilities by November 6, 1989.

5. Receive bids for sludge dewatering facilities by December 7, 1989.

6. Award contracts for construction of sludge dewatering facilities by December 21, 1989.

7. Commence on-site construction activities of sludge dewatering facilities by February 1, 1990.

8. Secure contracts for interim management of sewage sludge for period of time from March 17, 1991 to date upon which alternative system referred in paragraph IV above becomes operational by October 31, 1990.

9. Secure contracts for contingent interim management method for use if the primary interim management method becomes unavailable by December 31, 1990.

10. Complete all construction related activities necessary for operation, including shakedown, and initiate operation of sludge dewatering facilities and cease ocean disposal by March 17, 1991.

V. REPORTS AND CERTIFICATIONS

A. Beginning with the second calendar month after entry of this Decree, and continuing monthly thereafter until Defendant ceases ocean disposal of sewage sludge, the Defendant ++EP++

shall submit in writing to EPA and the State a report and certification detailing the status and progress of the interim measures under paragraph IV for phasing out and terminating ocean dumping of sewage sludge and for implementing its interim system of land based sludge management.

Page 7

B. Commencing with the second calendar month after entry of this Decree, the Defendant shall submit quarterly reports and certifications concerning its progress in implementing its long term alternative land-based system of sludge management.

C. The reports required by this paragraph shall include a description of the work performed in the previous period and a projection of the work to be performed during the following twelve month period pursuant to this Decree. The duly authorized representative ("representative") is the person with knowledge and authority to make the reports and to certify as to their accuracy as follows. The representative shall certify in the form for certifications of Discharge Monitoring Reports under the Clean Water Act, as set out at 40 C.F.R. 122.22(d), that the Defendant has met all schedule milestones in the prior period, and that the Defendant continues to be on schedule to meet all schedule milestones as set forth in paragraph IV of this Decree. Where the representative is unable to certify compliance, he or she shall identify the noncompliance, the reasons for such noncompliance, and the measures being taken to remedy the noncompliance. The Defendant shall submit such reports and ++EP++

certifications of compliance by certified mail, return receipt requested within 15 days of the end of the reporting period.

Page 8

Reports and certifications indicating that the Defendant is not in compliance with the Decree shall also be submitted by either telefax or express mail.

D. Within 15 days of each milestone date specified in the schedules in paragraph IV, the Defendant shall submit in writing to EPA and the State a report setting forth in detail whether or not the Defendant has complied in full with the requirement and if not, the work remaining to be done to achieve full compliance and a schedule for completion of such work. If a schedule milestone date is not met, the representative shall state what impact, if any, there will be on compliance with the final schedule dates in paragraph IV, and subsequently prepare and submit an acceleration plan to ensure that schedule dates in paragraph IV will be complied with to the extent possible. Defendant may incorporate this information in monthly or quarterly reports required by subparagraph A of this paragraph, provided that the Defendant does so within 31 days of a milestone if the milestone is timely achieved or within 15 days of a milestone if such milestone is not met.

E. The EPA and the State shall confer quarterly to evaluate the compliance of the Defendant with the schedules established in paragraph IV above. Upon 15 days notice from either EPA or the State, the Defendant shall provide a properly informed and authorized representative for such conference to ++EP++ discuss progress and problems in the planning, design and construction of the alternative systems for sludge management and the interim measures needed to eliminate the ocean disposal of sewage sludge.

Page 9

F. The Defendant shall submit to EPA and the State a quarterly report detailing the following: (1) the volume of sludge disposed of in the ocean during the preceding quarter; (2) the dollar amounts pursuant to paragraph VIII of this Decree for the volume of sludge disposed of in the ocean; (3) the date and amounts of payments made in accordance with paragraph VIII of this Decree by Defendant; and (4) verification of payment and sufficient documentation of payments by defendant's auditors (including documentation that appropriate payments were made) for all payments due in the reporting period. This report shall be submitted by the fifteenth day of the second month following the end of the calendar quarter. The first report shall be submitted by November 15, 1989.

G. The Governor of the State shall submit to the Administrator of EPA on September 30 of each year, commencing with 1989, a progress report as required by Section 104B(h) of the MPRSA, 33 U.S.C. 1414b(h). Failure to submit such a report shall result in a withholding of funds from the State pursuant to Section 104B(h) (2) of the MPRSA, 33 U.S.C. 1414b(h) (2).

VI. PROGRAM OVERSIGHT BY DEFENDANT

A. Within 30 days of the date of entry of this Decree the Defendant shall designate a duly authorized representative ++EP++

whose responsibility shall be to oversee the Defendant's program for construction of the interim and alternative sludge management facilities and to file the reports required by this Decree.

Page 10

B. Such representative shall have, at a minimum, the following responsibilities:

(1) facilitating the coordination of the Defendant's activities among its various departments and agencies in order to expedite and facilitate compliance with the terms of this Decree;

(2) attending quarterly progress meetings (as described in paragraph V.E above) among the parties or designating an acceptable representative to do so; and

(3) timely filing all reports required by this Decree.

VII. STIPULATED PENALTIES

The amounts set forth herein shall be the stipulated civil penalties under the Act and the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for the following specifically enumerated violations of paragraphs IV and V.

A. If the Defendant fails to comply with the specified deadlines and requirements of paragraph IV of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Non-compliance Violation or Violation Per Day 1-30 $2,000 ++EP++ Page 11 31-60 $5,000 Beyond 60 Days $10,000

Payments shall commence within thirty days of demand and shall become due and payable monthly thereafter.

B. If the Defendant fails to comply with any applicable requirements of paragraph V of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Noncompliance Violation or Violation Per Day 1-30 $100 31-60 $200 Beyond 60 Days $500

Payments shall commence not later than thirty days from the date of the violation and shall become due and payable monthly thereafter.

C. The stipulated penalties set forth in subparagraphs A and B above shall begin to accrue on the day that performance is due or the non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance. Each separate violation of this Decree shall constitute a separate penalty event, and nothing herein shall prevent the simultaneous accrual of separate penalties for separate violations of this Decree. In the event that stipulated ++EP++

penalties are payable to the Plaintiffs under this Decree and subject to subparagraph D and E, herein, fifty (50) percent of such penalty shall be paid to the United States and fifty (50) percent of such penalty shall be paid to the State.

Page 12

Penalties due to the United States shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the United States," to the United States Attorney for the District of New Jersey with a copy to EPA and to New Jersey DEP. Penalties due to the State shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the State of New Jersey," to the New Jersey Department of Environmental Protection, Bureau of Revenue, CN 402, Trenton, New Jersey 08625 with a copy to EPA. Interest shall accrue on any stipulated penalty not paid when due at the rate established by the Department of the Treasury under 31 U.S.C. Section 3717.

D. 1. Stipulated penalties for failure to meet milestone events for its interim measures (schedule elements IV.C.) shall be forgiven if the Defendant ceases ocean disposal of all of its sewage sludge by March 17, 1991, provided that Defendant has paid in the time frames provided for herein, all amounts demanded for alleged violations of those provisions of the Decree into an escrow account acceptable to the Court and to the Plaintiffs. If the Defendant for any reason fails to pay into escrow any amounts demanded, either pending adjudication of the claimed noncompliance or pending its ceasing of ocean disposal on or before March 17, 1991, this forgiveness provision ++EP++ shall be of no effect and such stipulated penalties as are due and owing because of Defendant's failure to meet an earlier milestone event shall be paid to the Plaintiffs.

Page 13

The interest earned on stipulated penalties paid into escrow shall be paid over to whichever party is entitled to the principal.

2. Except for stipulated penalties resulting from Defendant's failure to comply with the milestone event set forth in paragraph IV.B. 14, any stipulated penalties incurred by Defendant for failure to achieve any other milestone date in the schedules set forth in paragraph IV.B shall be forgiven upon the Defendant's timely achievement of the next subsequent milestone date in that schedule, provided that the conditions of this paragraph are met. Such stipulated penalties shall be paid within thirty days of demand by EPA or the State by tendering a check in the appropriate sum to the agent of an escrow account to be established by the Defendant. If Defendant thereafter demonstrates compliance with the next subsequent milestone event set forth in the schedule, then all stipulated penalties paid and held in escrow for violation of the preceding missed milestone event shall be returned to the Defendant. If, however, the Defendant fails to comply with the next subsequent milestone event set forth in the schedule, then the escrow agent shall pay such amounts of the escrow account for that schedule, including all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph. Nothing contained herein shall ++EP++

relieve the Defendant of any obligation to pay any stipulated penalties hereunder that Defendant fails to pay into the escrow account or which the escrow agent fails to pay to the United States and the State.

Page 14

E. In the event that Defendant claims that a Force Majeure event, as defined in paragraph XI of this Decree has occurred such that no stipulated penalty is due for a missed milestone date, Defendant shall pay the stipulated penalty into an escrow account and such payment shall be held by the escrow agent pending resolution of the Defendant's claim of Force Majeure pursuant to paragraphs XI and XII. If it is determined that no stipulated penalty is due, then all stipulated penalties paid and held in escrow for the violation of the milestone dates at issue shall be returned to the Defendant promptly. If, however, it is determined that the stipulated penalty is due because the delay was not caused by a Force Majeure event, then the escrow agent shall pay such amounts of the principal and interest that are not entitled to further escrow pursuant to subparagraph D, herein, and all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph.

F. In addition to the stipulated penalties set forth above and the fees and other statutory assessments established by the Ban Act: (1) the civil penalties and other relief provided by the MPRSA at 33 U.S.C. Section 1415 for violations of the Act for which ++EP++

stipulated penalties are not provided for herein, for violations of regulations issued thereunder, for violations of permits issued thereunder, and for violations of this Decree for which stipulated penalties are not provided for herein, shall apply and remain in effect; and (2) the civil penalties and civil administrative penalties and other relief provided by the New Jersey Water Pollution Control Act, including the New Jersey ban Act, for violations of the Acts, for violations of regulations promulgated pursuant thereto, and for violations of permits issued pursuant thereto, for which stipulated penalties are not provided for herein, shall apply and remain in effect.

Page 15

Notwithstanding any other provision of this Decree, New Jersey specifically reserves the right to seek injunctive relief and the maximum penalties pursuant to the New Jersey Water Pollution Control Act, including the New Jersey Ban Act for failure to cease ocean dumping of sewage sludge by March 17, 1991.

G. In the event of failure to pay stipulated penalties, as set out above, this matter may be referred to the United States Attorney and the State Attorney General for collection. Defendant shall be liable for plaintiffs' post-demand expenses, including attorney's fees, in such collection action.

VIII. STATUTORY ASSESSMENTS AND ESCROW REQUIREMENTS

A. In satisfaction of Defendant's obligations under 33 U.S.C. 1414b(b) (1) and 1414b(d) (1), the Defendant shall pay the amounts set forth herein for each day for the sewage sludge ++EP++ it disposes of in the ocean.

Page 16

Such payments are separate and apart from any penalties the Defendant may be liable for under paragraph VII. The quantity of dry tons shall be based upon the monthly average of percent solids for the sludge transported for the purpose of ocean disposal or disposed of in the ocean.

Penalties for disposing of sewage sludge or transporting sewage sludge for the purpose of disposing of it in the ocean shall be calculated for any such disposal after December 31, 1991, as set out in Section 1414b(d) (1) of the MPRSA. Such penalties are mandatory and independent of any civil penalties assessed or collected pursuant to Section 105 of the MPRSA and of any stipulated penalties assessed or collected pursuant to this Decree.

For the purpose of determining the applicable per-dry-ton fee or penalty, the date and time of initiation of transportation for the purpose of ocean disposal, to be reported as the time of loading sludge onto a barge (as required by condition 30.b. of the draft final permit), shall be used.

B. Payments of amounts assessed under paragraph VIII shall be made no later than on a quarterly basis, on the last day of the month following the end of a calendar quarter, if necessary should previous cumulative expenditures from the trust account described in C, below, be less than amounts due. The first payment, for sewage sludge dumped or for dumping initiated during the calendar quarter ending September 30, 1989 shall be made by October 31, 1989. For the purpose of determining the ++EP++

calendar quarter in which sludge was dumped, the date and time of initiation of transportation for the purpose of ocean disposal as the time of loading of sludge onto a barge (to be reported as required by condition 30.b. of the draft final permit) shall be used.

Page 17

C. The Defendant shall maintain a trust account, as approved by EPA, pursuant to 33 U.S.C. 1414b(e) in the form attached to this Decree for the payment and use of that portion of the statutory assessments and penalties established by the Ban Act that are to be deposited in this trust account. Nothing herein is intended to preclude defendants from utilizing funds raised for facilities to enable them to cease ocean disposal of sewage sludge to satisfy their escrow obligations under this Decree.

D. Defendant shall pay fees and penalties in accordance with 33 U. S.C. Sub-Section 1414b(b)(2)(c) and 1414b(d)(2)(c)(i) into the Clean Oceans Fund established under 33 U.S.C. 1414b(c)(5) and the Water Pollution Control Revolving Fund established under Title VI of the Federal Water Pollution Control Act. In the event that the State has not established a Clean Oceans Fund or water pollution control revolving fund by February 28, 1990, fees and penalties required to be paid to the Fund or revolving fund by Defendant shall be paid to EPA pursuant to 33 U.S.C. 1414b(b)(5).

E. In satisfaction of Defendant's obligations under 33 U.S.C. Sub-Section 1414b(b)(2) and 1414b(d)(2), the following amounts ++EP++ shall be paid by Defendant as set forth below to the following recipients for each dry ton of sewage sludge dumped in the ocean:

Page 18 Payments Per Dry Ton Dumped Recipients State Water Year in Clean Pollution Which Sludge Trust Oceans Control Re- Was Dumped EPA Account Fund/1/ volving Fund/1/ 1989 $15.00 $85.00 -- -- 1990 15.00 127.50 $3.75 $3.75 1991 15.00 170.00 7.50 7.50

((/1 If established; if not established, to EPA pursuant to paragraph VIII.D.))

After December 31, 1991, payment and distribution of penalties shall be computed and paid in accordance with 33 U.S.C. 1414b(d)(2).

F. Amounts paid to EPA under paragraph VIII.E shall be paid by a check made payable to the "Treasurer of the United States," and delivered by certified mail, return receipt requested, to EPA. Statutory assessments paid to the Clean Oceans Fund, state water pollution control revolving fund, or State shall be paid by a check made payab,e to the Treasurer, state of New Jersey, and delivered by certified mail, return receipt requested, to the State. Amounts paid into the trust account shall be paid by a check made payable to the trustee for said account. Whenever any payment is due under this Decree, if such payment is not received on or before the day on which ++EP++

payment is to be made pursuant to paragraph VIII.B., interest on the amount due will be assessed without further demand against Defendant at the annual rate established by the Secretary of the Treasury pursuant to 31 U.S.C. Section 3717, on the overdue amount from the day on which it was due through the date of payment.

Page 19

Failure to pay the amounts in full according to the above provisions will result in referral of this matter to the United States Attorney and the State Attorney and the State Attorney General for collection. Interest on late payments shall be paid to EPA for untimely payments to EPA or the Defendant's trust account and to the State for untimely payments to it or to its revolving fund or Clean Oceans Fund. Interest on late payments shall be deposited in the U.S. Treasury or State Treasury as appropriate as general funds. Defendant shall be liable for Plaintiffs' necessary and reasonable expenses, including attorneys' fees, in such collection action.

G. In the event of Defendant's failure to make full payment to the trust account in accordance with paragraph VIII of this Decree within thirty days of the date on which it was due or Defendant's failure to use amounts withdrawn or received from the account in accordance with 33 U.S.C. 1414b(e) and this Decree, EPA shall provide notice to the Defendant and an opportunity for informal dispute resolution. If, thereafter, EPA finds that such a failure has occurred, it may direct the trustee of the trust account to pay the balance of the amounts in the trust account to the State for use in accordance with 33 U.S.C. 1414b(e) (2) (C). ++EP++

Pending final resolution of any district court challenge, the trustee shall continue to hold the funds in the trust account.

Page 20

H. Amounts paid to the trust account, the State, the Clean Oceans Fund, or the state water pollution control revolving fund shall be used subject to the restrictions of 33 U.S.C. Sub-Section 1414b(c) (5), (e) and (f). The Defendant shall conduct audits on an annual basis to establish that such statutory assessments and penalties were properly deposited and paid out. The Defendant shall utilize the services of an auditor to conduct separate audits, on an annual basis of Defendant's expenditures from the trust account and from funds provided to it from the Clean Oceans Fund, to demonstrate compliance with 33 U.S.C. 1414b( c) (5) and (e). Costs incurred by the Defendant pursuant to this Decree and paid from the trust account and from funds provided to Defendant from the Clean Oceans Fund shall be necessary and reasonable, and allocable to the projects allowed by 33 U.S.C. 1414b(c) (5) and (e). The Defendant may look to the applicable cost principles of OMB Circular A-87 (46 Federal Register 9548 (1981)) for guidance in determining allowable costs. Such audit reports required of the Defendant shall be submitted to EPA and the State within 90 days after the end of each calendar year.

I. The Defendant shall submit to the EPA and the State, a scope of work for each project for which it expects to seek to withdraw funds from the trust account in the following six-month period. The first report shall be due by August 30, ++EP++

1989 and shall cover the period from August 15, 1989 through December 31, 1989.

Page 21

Subsequent submissions shall be due 60 days prior to commencement of the next six-month period (e.g., October 30, 1989, for the period of January 1 through June 30, 1990). Each scope of work will consist of a description of the major activities to be funded in each project, the required level of funding for each such activity and a cumulative six-month payment schedule based upon projected costs to be incurred.

J. EPA will approve or disapprove the projected work and estimated costs for the major activities for the following six month period and will notify the trustee of the trust account and the State of EPA's approval or disapproval of the projected work and estimated cost and will provide the trustee with a list of the approved activities, funding levels and associated payment schedule. If EPA fails to act on the Defendant's proposed scope of work and payment schedule within 60 days of its receipt, the Defendant may submit the scope of work and payment schedule to the Trustee together with a certification that EPA has failed to disapprove use of the trust account as required in 33 U. S.C. 1414b(e) (2) (A).

K. The Defendant may request funds from the Trustee for immediate cash disbursements based upon the approved payment schedule costs incurred. The Trustee will authorize the expenditure of funds in accordance with the scope of work and approved payment schedule. If the Defendant anticipates that funding for the authorized activities will exceed the amounts in ++EP++ the approved scope of work, the Defendant may seek approval for the release from its trust account from EPA for such additional needs.

Page 22

L. This Decree specifies only the minimum amounts that must be placed in the trust account. Nothing in this Decree is intended to prevent the Defendant from depositing into the trust account, as a matter of administrative convenience, sums greater than those specified herein, or to preclude them from depositing additional amounts for any lawful purpose, provided that the minimum amounts required to be in such account are at all times present. Notwithstanding the fact that the Defendant may have deposited in the Trust Fund sums greater than the statutorily prescribed amounts, for its convenience or for any other good reason, the Plaintiffs' interest in the Trust Fund is limited to the amounts established by the Ban Act and as set out herein.

IX. NOTIFICATIONS

A. Except as specified otherwise, when written notification to or communication with the United States or the State is required by the terms of this Decree or when payment of a statutory assessment or penalty is to be made, it shall be sent by certified mail, return receipt requested, and addressed as follows:

As to the United States of America:

United States Attorney's Office

Federal Building ++EP++

970 Broad Street

Newark, New Jersey 07102

Page 23

United States Department of Justice

Land and Natural Resources Division

10th & Constitution Ave., N.W.

Washington, D.C. 20530

Attn: Chief, Environmental Enforcement Section

As to the Environmental Protection Agency:

U.S. Environmental Protection Agency

Region II

Office of Regional Counsel

26 Federal Plaza

New York, New York 10278

U.S. Environmental Protection Agency

Financial Management Branch, Policy and

Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

Water Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

As to State:

Chief, Environmental Protection Section

Division of Law

CN 112

Hughes Justice Complex

Trenton, New Jersey 08625

Director

Division of Water Resources

Department of Environmental Protection

CN 029

401 E. State Street

Trenton, New Jersey 08625

As to Defendant:

Michael J. Brinker, Jr. ++EP++

Page 24

Executive Director

Joint Meeting of Essex and Union County

500 South First Street

Elizabeth, New Jersey 07202

Notifications to or communications with the United States, EPA or the State shall be deemed submitted on the date they are telefaxed or postmarked and sent by certified mail, return receipt requested, whichever occurs later.

B. Reports required to be submitted pursuant to paragraph V shall be signed by the responsible official of the Defendant designated pursuant to paragraph VI and shall include a certification under penalty of law that the responsible official is in a position to know the facts contained in the report, has made sufficient inquiry to determine the accuracy of the information contained in the submission and that he or she certifies that to the best of his knowledge the information contained in or accompanying the submission is true, accurate and complete. (See 40 C.F.R. 122.22 for form of certification.)

X. MODIFICATIONS

Except as provided for herein, there shall be no modification of this Decree without written approval of all of the parties to this Decree, subject to the approval of the Court, or Order of the Court. Nothing herein shall be construed to limit any party's rights pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.

XI. FORCE MAJEURE

A. A Force Majeure event is any event that is beyond the control and without the fault of the Defendants and/or its ++EP++

contractors and which causes a delay in implementing any of the measures required by this Decree.

Page 25

Such Force Majeure events may be occasioned by, among other things, Act of God; contractor or supplier default; failure of a federal or state regulatory agency to issue any necessary permit or approval in a timely fashion (where, in accordance with all applicable laws and regulations, the Defendant timely submitted an application, has done all it can do to ensure that such application is complete, has provided all necessary supporting information and is otherwise entitled to such permit or approval); inability to secure responsible bids; or a judicial injunction (where such injunction is issued by a court of competent jurisdiction directed against work actually being performed in furtherance of construction of sludge treatment and disposal facilities and provided that the Defendant has exercised due diligence and best efforts in seeking removal to this court and in resisting such injunction, including appeals, and further provided that the Defendant has acted in accordance with applicable statutes and regulations). If a Force Majeure event occurs, Defendant shall be entitled to a modification of the schedule milestones to the extent that such event was beyond the control of the Defendant. The Defendant bears the burden of establishing that the event was beyond its control and of demonstrating the amount of delay that is necessary because of the Force Majeure event. As a condition precedent to obtaining any relief under this provision, Defendant shall notify the Court and all the parties in writing that a ++EP++ Force Majeure event has occurred, no later than 90 days after the date Defendant knew or should have known of the occurrence of any Force Majeure event.

Page 24

B. The notice to EPA and the State, required above, shall include, to the extent such information is available at the time of such notification:

1. The anticipated length of time of the delay;

2. The cause of the Force Majeure event;

3. Measures taken to minimize the delay including a time table for implementation of any such measures;

4. Proposed date by which subsequent schedule milestones will be achieved; and

5. Activities that can be taken to minimize the impact of the Force Majeure event on the overall schedule.

C. If all the parties agree that a failure to comply with any requirement of this Decree, including a schedule milestone in paragraph IV, was caused by a force majeure event, the parties shall seek an amendment to this Decree containing such proposed modifications, including revised schedule milestones as may be necessary, and no stipulated penalties shall be incurred. If the parties agree that an extension is necessary, the schedule of milestone dates under paragraph IV shall be extended for the period of time caused by the Force Majeure event. However, it is the State's intention to oppose any extension of the disposal of sludge beyond March 16, 1991 because it is the State's position that it has no authority to ++EP++ extend the statutory imposed deadline.

Page 27

In the event that revision of the schedule milestones is necessary, the Defendant agrees to make every effort to ensure that the milestone events set forth in paragraph IV are not extended.

D. If the parties cannot agree that a failure to achieve milestone dates was beyond the control of the Defendant, the Defendant may, within 90 days following the missed milestone event, apply to the Court for a determination as to whether all or part of the delay was excusable due to a Force Majeure event.

E. If, for any reason, the Defendant fails to achieve any schedule milestone established in paragraph IV and the parties cannot agree that the remainder of the schedule milestones will be affected, or how they will be affected, then the Defendant may, within 90 days following the missed schedule milestone, petition the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule milestones as established in paragraph IV. Whenever a milestone is missed, the Defendant shall exercise its best efforts to recoup all lost time, including, where appropriate, the payment of additional costs for overtime, double shifts or additional contractors or consultants.

XII. DISPUTE RESOLUTION

A. Any dispute between two or more parties to this Decree which arises under this Decree shall in the first instance be the subject of informal negotiations between the parties to ++EP++

the dispute for a period of up to twenty (20) days from the time notice of the dispute is given.

Page 28

Both the EPA and the State shall be considered parties to any dispute. The period for negotiations may be extended by agreement of the parties to the dispute.

B. In the event that the parties cannot resolve the dispute by informal negotiations under the preceding paragraph, then the position advanced by EPA and the State, after consultation, will be considered binding unless, within fifteen (15) days after the end of the informal negotiations period, the Defendant files a petition with this Court setting forth the matter in dispute, the efforts of the parties to resolve it, and the relief requested which may include a request that a master be appointed by the court. Any party to the dispute may present a disputed matter to the Court before the end of the negotiations period if the matter concerns stipulated penalties or otherwise requires early resolution. The dispute resolution procedures of this paragraph shall be the exclusive mechanism to resolve disputes arising under this Decree and in connection with the draft final permit incorporated herein.

If, for any reason, the Defendant fails to achieve any milestone date(s) established in paragraph IV and the parties cannot agree that the remainder of the schedule will be affected, or how it will be affected, and the Defendant petitions the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the ++EP++

remainder of the schedule for such project as established in this Decree, in the interim the Defendant shall exercise its best efforts to recoup all lost time.

Page 29

In any proceeding convened under this paragraph, the Defendant shall bear the burden of proof to demonstrate that a change in the schedule is required. The Court shall determine whether and to what extent future milestones will be affected and, if the Court so finds, shall direct that appropriate schedules be submitted. Prior to the recommendation of any schedule further extending the end dates for completion of the tasks enumerated in paragraph IV, the Defendant shall demonstrate to the Court that alternative methods to recoup time lost in the delays have been explored and that no practicable means exist to do so.

C. The filing of a petition asking the Court to resolve a dispute shall not of itself extend or postpone any obligation of the Defendant under this Decree, provided further that nothing herein shall prevent an affected party from applying to the Court, upon notice to all parties, for a stay of relief authorized or directed by this Decree.

D. In proceedings on any dispute regarding a delay in performance or other noncompliance, the Defendant shall have the burdens of proving (1) that the delay or other noncompliance is or was caused by circumstances beyond the Defendant's control and without fault of the Defendant, and (2) that the amount of any additional time requested is necessary to compensate for such circumstances. ++EP++

Page 30 XIII. COMPLIANCE WITH OTHER LAWS

A. Except as otherwise provided in this Decree, the Defendant shall not be relieved of its responsibility to comply with any other Federal, State, or local law or regulation.

B. This Decree constitutes an agreement pursuant to the Ban Act, 33 U.S.C. 1414b(c)(3) and satisfies the requirements of 33 U.S.C. 1414b( a)(1)(A)(i). A violation of this Decree is a violation of the MPRSA. The United States and the State do not, by their entry into this Decree, warrant or aver in any manner that the Defendant's complete compliance with this Decree will result in compliance with the Act, the State Ban Act or any other Federal or State law. Notwithstanding the EPA's and the State's review of any plans formulated by the Defendant pursuant to this Decree, Defendant is solely responsible for compliance with all Federal and State laws and regulations. The United States and State do not waive any rights or remedies available to them for any violation by Defendant of Federal or State laws or regulations occurring after termination of this Decree. This Decree in no way affects or relieves the Defendant of its responsibility to comply with any Federal or State law or regulation. Nothing in the Decree shall be construed to limit the Plaintiffs' right to seek contempt sanctions for violations of this Decree or to seek penalties or injunctive relief under ++EP++

any Federal or State statute or regulation for violations for which stipulated penalties are not provided for by this Decree.

Page 31

C. The Defendant, EPA and the State will take all possible steps to expedite, to the extent practicable, submission and review, as appropriate, of any permits, applications or approvals needed for completion of the interim measures and long-term alternative system(s), setforth herein.

XIV. RETENTION OF JURISDICTION

This Court shall retain jurisdiction to enforce the terms and conditions of this Decree and to resolve disputes arising hereunder as may be necessary or appropriate for its implementation.

XV. TERMINATION

This Decree shall terminate when the Defendant has complied with all applicable requirements of this Decree and the United States and the State have so certified.

The parties consent to entry of this Decree without further notice.

Respectfully submitted,

/s/ Donald A. Carr

DONALD A. CARR

Acting Assistant Attorney General

Land and Natural Resources

Division

United States Department of

Justice ++EP++

Page 32

/s/Bruce C. Buckheit

BRUCE C. BUCKHEIT

Senior Counsel

Environmental Enforcement Section

Land and Natural Resources

Division

United States Department of

Justice

Washington, D.C. 20530

SAMUEL A. ALITO, JR.

United States Attorney

for the District of New Jersey

By: /s/Vincent Gentile

VINCENT GENTILE

Assistant United States Attorney

Federal Building (Rm. 502)

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 33

FOR THE ENVIRONMENTAL PROTECTION

AGENCY

/s/ William J. Muszynski

WILLIAM J. MUSZYNSKI

Acting Regional Administrator

U.S. Environmental Protection

Agency

Region II

/s/

EDWARD E. REICH

Acting Assistant Administrator

for Enforcement and

Compliance Monitoring

/s/ Charles E. Hoffmann

CHARLES E. HOFFMANN

Assistant Regional Counsel

Environmental Protection Agency

26 Federal Plaza

New York, New York 10278 ++EP++

Page 34

FOR THE STATE

/s/ Christopher J. Daggett

CHRISTOPHER J. DAGGETT

Commissioner, New Jersey

Department of Environmental

Protection

/s/ Anthony J. Parrillo

ANTHONY J. PARRILLO

Executive Assistant Attorney

General of the State

of New Jersey

/s/ Robert G. Hoyt

ROBERT G. HOYT

Deputy Attorney General

State of New Jersey

New Jersey Division of Law

Hughes Justice Complex

Trenton, New Jersey 08625 ++EP++

Page 35

FOR THE JOINT MEETING OF ESSEX

AND UNION COUNTIES

/s/ Robert H. Grasmere

ROBERT H. GRASMERE

Chairman

Joint Meeting of Essex and Union

Counties

/s/ Michael J. Brinker, Jr.

MICHAEL J. BRINKER, JR.

Executive Director

Joint Meeting of Essex and Union

Counties

500 South First Street

Elizabeth, New Jersey 07202

++EP++

Page 36

SO ORDERED:

DATE Dec 4, 1989

/s/

UNITED STATES DISTRICT JUDGE ++EP++

JOINT MEETING ESSEX & UNION

DOC 01 OF 02

Complaint

02-90-C006

MPRSA

MUNI

19891204

19890804

NJD087277661

JOINT MEETING

ELIZABETH, NJ

89-3339

02

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA and STATE OF NEW JERSEY, Plaintiffs,

v.

JOINT MEETING OF ESSEX AND UNION COUNTIES, Defendant.

Civil Action No. 89-339

COMPLAINT

Plaintiff, the United States of America, through its undersigned attorneys, at the request and on behalf of the Administrator of the United States Environmental Protection Agency ("EPA"), alleges as follows:

NATURE OF ACTION

1. This is a civil action pursuant to Section 105(d) of the Marine Protection, Research and Sanctuaries Act ("MPRSA"), 33 U.S.C. Section 1415(d), as amended, for injunctive relief against the Joint Meeting of Essex and Union Counties ("Joint Meeting"), to abate imminent violations of Section 104B of the Act, 33 U.S.C. Section 1414b.

JURISDICTION AND VENUE

2. This Court has jurisdiction over the subject matter of this action and over the parties herein pursuant to ++EP++

Section 105(d) of the Act, 33 U.S.C. Section 1415(d), and 28 U.S.C. Sub-Section 1331 and 1345.

Page 2

3. Venue is proper in this judicial district pursuant to 28 U.S.C. Section 1391(b) and (c), because this is the district in which Joint Meeting is located and has its principal place of business.

PARTIES

4. The United States of America, acting on behalf of the Environmental Protection Agency, is a plaintiff in this action.

5. The State of New Jersey is listed as a plaintiff herein. Section 104B(c) of the Act, 33 U.S.C. Section 1414b(c), requires that the State be a party to any agreement which permits ocean dumping after August 14, 1989. The State has signed such an agreement in the form of the consent decree filed with this complaint. The State has an interest in enforcing this agreement and is a necessary party to this action. Accordingly, the State is designated as a party plaintiff in the caption herein. The State will file the appropriate motion to join this action as a party plaintiff.

6. Defendant Joint Meeting is a public corporation and political unit of the State of New Jersey with its principal place of business at 500 South First Street, Elizabeth, New Jersey. Joint Meeting was created pursuant to an Act of the New Jersey legislature in accordance with a state policy to "foster and promote by all reasonable means the relief of waters in or ++EP++

bordering the State from pollution and thus to reduce and ultimately abate the menace to the public health resulting from such pollution."

Page 3

N.J.S.A. 40:14-1 et seq., 40-14B-1 et seq. Joint Meeting operates a secondary wastewater treatment plant which serves portions of Essex and Union Counties. Joint Meeting is a "person" within the meaning of the MPRSA, 33 U.S.C. Sub-Section 1402, 1414b.

STATUTORY BACKGROUND

7. Congress enacted the MPRSA in 1972 to regulate the dumping of materials into ocean waters and to "prevent or strictly limit the dumping into ocean waters of any material which would adversely affect human health, welfare, or amenities, or the marine environment, ecological systems, or economic potentialities." 33 U.S.C. Section 1401(a).

8. The MPRSA prohibits, inter alia, any dumping of industrial wastes or sewage sludge into ocean waters except as authorized by a permit issued by EPA. 33 U.S.C. Sub-Section 1411, 1412, 1412a.

9. In 1988, Congress enacted the Ocean Dumping Ban Act of 1988 (the "Ban Act"), Title I of Pub. L. 100-688, which amended the MPRSA to ensure the phasing out and termination of all ocean dumping of sewage sludge and industrial waste. As amended, the MPRSA makes it unlawful, on and after the 270th day after the enactment of the Ban Act, or August 14, 1989, for any person to dump sewage sludge or industrial waste, or to transport sewage sludge or industrial waste for the purpose of dumping it, ++EP++

into ocean waters unless such person has (1) entered into a compliance agreement or enforcement agreement which meets the requirements of Section 104B of the MPRSA, and (2) obtained a permit issued by EPA authorizing such dumping or transportation.

Page 4

33 U.S.C. Sub-Section 1414b(a)(1).

10. Under Section 104B(c) of the MPRSA, as amended by the Ban Act, EPA may issue a permit for the dumping and transportation of sewage sludge or industrial waste into the ocean only after, and conditioned upon, the permittee's entering into a compliance agreement, where permitted by law, or an enforcement agreement, either of which must meet the requirements of that section.

11. The amended MPRSA further makes it unlawful for any person to dump into ocean waters, or to transport for the purpose of dumping into ocean waters, sewage sludge or industrial waste after December 31, 1991. 33 U.S.C. Section 1414b(a)(1)(B).

12. Under Section 104B(c) of the MPRSA, as amended by the Ban Act, the phasing out and termination of ocean dumping, or the transportation for the purpose of ocean dumping, of sewage sludge and industrial waste, must be achieved through the design, construction and full implementation of an alternative system for the management of sewage sludge and industrial waste. 33 U.S.C. 1414b(c).

13. The MPRSA defines "sewage sludge" as "any solid, semisolid or liquid waste generated by a wastewater treatment plant, other than an excluded material". 33 U.S.C. Section 1414b(k)(6). ++EP++

Page 5

14. Section 105(d) of the MPRSA authorizes the Attorney General or his delegate to "bring actions for equitable relief to enjoin an imminent or continuing violation" of the Act, of regulations promulgated under the Act, or of permits issued under the Act. 33 U.S. C. Section 1415(d).

CLAIM FOR RELIEF

15. Paragraphs 1 through 14 are realleged and incorporated herein by reference.

16. Joint Meeting currently generates sewage sludge, as defined by the MPRSA, at a rate of approximately 307,707 wet tons per year. Joint Meeting transports its sewage sludge by barge and dumps it into the water of the Deepwater Municipal Sludge Dump Site ("106-Mile Site"). The 106-Mile Site is located on the edge of the continental shelf, 115 nautical miles from Atlantic City, New Jersey, a location that is in "ocean waters" as defined by the MPRSA. 33 U.S.C. Section 1402(b).

17. Section 104B of the MPRSA requires Joint Meeting to phase out and terminate dumping, or transportation for the purpose of dumping, of sewage sludge into ocean waters through the design, construction and full implementation of an alternative system for the management of sewage sludge, by not later than December 31, 1991. Joint Meeting has agreed to employ interim, land-based measures for sewage sludge disposal not later than March 17, 1991 and to design, construct, and fully implement an alternative system for the management of its sewage sludge by February 10, 1998. ++EP++

Page 6

18. Upon information and belief, Joint Meeting will not terminate dumping, or transportation for the purpose of dumping, of sewage sludge into ocean waters through the design, construction and full implementation of an alternative system for the management of sewage sludge, by December 31, 1991, as mandated by Section 104B of the MPRSA.

19. Because Joint Meeting will not achieve full implementation of an alternative system for the management of its sewage sludge, there is a continuing danger that, despite its expressed intent to employ interim measures for land-based disposal, Joint Meeting will continue to dump, or to transport for the purpose of dumping, sewage sludge into ocean waters after December 31, 1991, in violation of Section 104B(a)( 1)(B) of the MPRSA, unless enjoined by an order of this Court.

WHEREFORE, Plaintiff United States of America respectfully prays that this Court:

1. Approve and enter the agreement and consent decree filed herewith:

a. enjoining Joint Meeting from dumping any sewage sludge or industrial waste into ocean waters except in accordance with the agreement and consent decree with EPA and the State, as required by the MPRSA and filed herewith, and a permit issued by EPA, as required by the MPRSA;

b. requiring Joint Meeting to develop and implement interim measures for disposal of its sewage sludge that will ++EP++

allow Joint Meeting to terminate all ocean dumping of its sewage sludge as soon as practicable but in no event later than March 16, 1991;

Page 7

c. requiring Joint Meeting to develop and implement an alternative system for management of its sewage sludge by December 31, 1991, or as soon thereafter as practicable but in no event later than February 10, 1998; and

2. Grant the United States such other relief as the Court deems just and proper.

Respectfully submitted,

/s/ Donald Carr

DONALD A. CARR

Acting Assistant Attorney General

Land and Natural Resources

Division

/s/

BRUCE C. BUCKHEIT

WILLIAM D. BRIGHTON

LOUISE F. MILKMAN

Trial Attorneys

Land and Natural Resources

Division

United States Department of

Justice

P.O. Box 7611

Washington, D.C. 20044-7611

(202) 633-5250

SAMUEL A. ALITO, JR.

United States Attorney

District of New Jersey

/s/ (ILLEGIBLE)

VINCENT GENTILE

Chief, Civil Division

United States Attorney's Office

970 Broad Street

Newark, New Jersey

(201) 621-2947 ++EP++

OF COUNSEL:

CHARLES E. HOFFMANN

Assistant Branch Chief

Office of Regional Counsel

U.S. Environmental Protection

Agency - Region II

26 Federal Plaza

New York, New York 10278 ++EP++

ATTACHMENT A

DRAFT FINAL

MARINE PROTECTION, RESEARCH, & SANCTUARIES ACT OCEAN DUMPING PERMIT

PERMIT NO. AND TYPE: II-NJ-022-SPECIAL

EFFECTIVE DATE: AUGUST 14, 1989

EXPIRATION DATE: MARCH 17, 1991

PERMITTEE:

Mr. Michael J. Brinker, Jr.

Executive Director

Joint Meeting of Essex and Union Counties

500 South First Street

Elizabeth, New Jersey 07202

WASTE GENERATOR(S): Same as above

WASTE GENERATED AT: Same as above

PORT OF DEPARTURE: Port of New York and New Jersey

WASTE TRANSPORTERS: 106 Mile Transport Associates

TOWING CONVEYOR(S):

Weeks Stevedoring Co., Inc.

General Marine Transport Corp.

Moran Towing Transportation Co., Inc.

Turecamo Coastal and Harbor Towing Corp.

Eckloff Marine Corp.

Reinauar Transportation Co.

Bouchard Transportation Co., Inc.

or any other transporter or towing conveyor contracted by the permittee and authorized by the EPA to perform such services.

This permit authorizes the transportation and dumping into ocean waters of certain materials pursuant to the Marine Protection, Research, and Sanctuaries Act of 1972, as amended 33 U.S.C. 1401-1444, (hereinafter referred to as "the Act"), regulations promulgated thereunder, and the terms and conditions set forth below. ++EP++

Page 2 Conditions:

1. All transportation and dumping authorized herein shall at all times be undertaken in a manner consistent with the terms and conditions of this permit. The Permittee(s) named above shall hereafter be referred to as the permittee(s). The permittee, waste transporter, and towing conveyor designated above shall be liable for compliance with such terms and conditions. The liability of each is set forth in Condition No. 33. Compliance by any permittee, waste transporter, or towing conveyor with one or more but less than all of the conditions with which the permittee, waste transporter, or towing conveyor must comply shall not constitute a ground or grounds of defense in any proceeding against that permittee, waste transporter, or towing conveyor for violation of the provisions of this permit.

2. Any person who violates any provision of the Act, the Regulations issued thereunder, or any term or condition of this permit shall be liable for a civil penalty of not more than $50,000 per day for each violation. Additionally, any knowing violation of the Act, Regulations or permit may result in a criminal action being brought with penalties of not more than $50,000 or one year in prison, or both.

3. a. Transportation to and dumping of waste, or any residue of said waste that remains in the vessel after the dumping procedures described in Condition No. 24, at any location other than that authorized by this permit shall constitute a violation of the Act and the terms and conditions of this permit.

b. Transportation and dumping of any material or constituent not identified in this permit, or in excess of that identified in this permit, or in excess of the criteria identified in the Regulations, unless specifically authorized by a written modification hereto, shall constitute a violation of the Act and the terms and conditions of this permit.

4. Nothing contained herein shall be deemed to authorize, in any way, the transportation from the United States for the purpose of dumping into ocean waters, the territorial seas, or into the contiguous zone, of the following prohibited material:

a. High-level radioactive wastes.

b. Materials, in whatever form, produced for radiological, chemical, or biological warfare.

c. Persistent inert synthetic, or natural materials which may float or remain in suspension in the ocean. ++EP++

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d. Digester cleanout - defined as any material that is removed from a sludge digester through the cleaning of said digester.

e. Storage tank cleanout - defined as any material that is removed from a storage tank through the cleaning of said storage tank.

f. Medical wastes as defined in Section 3 (k) of the Act.

5. Any person who dumps medical wastes shall be liable for a civil penalty of not more than $125,000 per day for each violation. Additionally, anyone who knowingly dumps medical wastes may be subject to criminal action being brought with penalties of not more than $250,000 or not more than 5 years in prison, or both, in accordance with Section 105 of the Act.

6. After notice and opportunity for a hearing, this permit may be modified or revoked, in whole or in part, during its term for cause including, but not limited to, the following:

a. Violation of any term or condition of the permit.

b. Misrepresentation, inaccuracy, or failure by the permittee or waste transporter to disclose all relevant facts in the permit application.

c. A change in any condition or material fact upon which this permit is based that requires either a temporary or permanent addition to, reduction, or elimination of the authorized transportation or dumping including, but not limited to, changes in conditions at the designated dump site and newly discovered scientific data relative to the issuing of this permit.

d. Failure to keep records, engage in monitoring and reporting activities, or notify appropriate officials in a timely manner of the transportation and dumping activities as specified in any condition of this permit.

7. This permit shall be subject to suspension by the EPA Regional Administrator or his delegate if he determines that the authorized dumping has resulted, or is resulting, in imminent or substantial harm to human health or welfare or the marine environment. ++EP++

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8. The performance of any transportation or dumping authorized by this permit, by any person, firm, or corporation other than the named permittee shall not relieve the permittee from full responsibility for compliance herewith, nor shall the existence of any contractual or other agreement with such person, firm, or corporation operate to relieve either party from responsibility for compliance with this permit or the Act or both.

9. The authority conferred by this permit may, at the discretion of the EPA Regional Administrator or his delegate, be transferred to a waste transporter, or towing conveyor other than those named herein, provided that a request for such a transfer be made, in writing, by the permittee at least thirty (30) days prior to the requested transfer date.

10. If material which is regulated by this permit is discharged due to an accident or an emergency to safeguard life at sea, in locations or in a manner not in accordance with the terms or conditions of this permit, the permittee shall make a full written report within ten (10) days to the Regional Administrator detailing the conditions of this accident or emergency and the actions taken. The owner or operator of the vessel shall notify EPA and the Coast Guard of the incident by radio, telephone, or telegraph immediately but not later than one (1) hour after occurrence of said incident.

Within sixty (60) days of issuance of this permit, the permittee shall submit to EPA for approval a catastrophic spill contingency plan detailing steps to be taken for the prevention of and mitigation of environmental impacts from a catastrophic spill.

11. Unless otherwise provided for herein, all terms used in this permit shall have the meanings assigned to them by the Act or the Regulations issued thereunder.

12. The issuance of this permit does not convey any property rights in either real or personal property, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of rights, nor any infringement of federal, state, or local laws or regulations, nor does it obviate the necessity of obtaining State or local assent required by applicable law for the activity authorized.

13. This permit does not authorize or approve the construction of any onshore physical structures or facilities or the undertaking of any work in any navigable water.

14. Each waste transporter and towing conveyor shall at all times maintain in good working order and operate as efficiently and as safely as possible, all facilities, including vessels, used by the waste transporter or towing conveyor in achieving ++EP++ compliance with the terms and conditions of this permit.

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All vessels used in achieving such compliance shall be certified as meeting U.S. Coast Guard standards for seaworthiness and safety.

15. This permit, or a true copy thereof, shall be placed in a conspicuous place in each scow, boat, barge, towed vessel, self-propelled vessel or tugboat that will be used to transport, dump, or transfer the waste described in this permit.

16. Every scow, boat, barge, towed vessel, self-propelled vessel or tugboat, engaged in the transportation of wastes described in this permit shall have its name and number painted in letters and numbers at least fourteen (14) inches high on both sides of the scow, boat, barge, towed vessel, self-propelled vessel or tugboat. The name and number shall be distinctly legible at all times, and no scow, boat, barge, towed vessel, self-propelled vessel or tugboat not so marked shall be used to transport, dump, or transfer such material.

17. The permittee, waste transporter(s), and towing conveyor(s) shall allow the EPA Regional Administrator, the Commander of the U.S. Coast Guard Third District, appropriate State representatives and/or their authorized representatives including authorized contractors, the following:

a. To enter into, upon, or through the permittee's or waste transporter's premises, vessels, or other premises or vessels under the control of the permittee or waste transporter where, or in which, a source of material to be dumped is located or in which any records required to be kept under the terms and conditions of this permit or the Act. The vessels include any towed vessel, tugboat, barge, scow, boat, or self-propelled vessel.

b. To have access to and copy any records required to be kept under the terms and conditions of this permit or the Act.

c. To inspect any monitoring equipment or monitoring method required in this permit.

d. To sample or require that a sample be drawn of any of the materials discharged or to be discharged.

e. To inspect any dumping and navigation equipment installed on board any towing vessel, tugboat, barge, or self-propelled vessel utilized in ocean dumping activities authorized under this permit. ++EP++

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18. a. As part of the Ocean Dumping Surveillance System (ODSS) the waste transporter shall allow the Coast Guard to install on each towed vessel or self-propelled vessel departing port for ocean dumping activities under this permit, a remote unit (black box), hull transducers, hull inserts, antennas and all necessary cable and connections and any other equipment or devices used to facilitate the operation of the ODSS. The waste transporter(s) is required to coordinate installation of the ODSS with the Coast Guard and is responsible for arranging dry docking of the vessels.

The waste transporter(s) is also responsible for:

i. supplying and mounting the brackets for the cables and antennas.

ii. making all necessary waterproof bulkhead holes for cables.

iii. mounting the hull inserts in the hull into which the hull transducers are installed.

iv. routing the cable from the transducers and antenna to the remote unit.

v. providing an AC power source (Circuit Panel) to the remote unit.

b. The ODSS shall be installed and tested no later than 30 days before any dumping may occur. The permittee shall not use nor the waste transporter allow a towed vessel or self-propelled vessel to depart on a dumping mission without such equipment installed and tested unless a written authorization from the Regional Administrator or his delegate is first obtained.

c. The waste transporter shall maintain continuous AC electrical power to the remote units and dump sensors at all times, whether at sea or in port.

d. The waste transporter and towing conveyor shall not alter or remove the remote unit, hull transducers, connections, antennas or any other part of the ODSS, nor shall the waste transporter or towing conveyor in anyway interfere with the operation of said system.

19. Description of Waste - During the term of this permit, the type and quantity of waste permitted for transportation for the purpose of ocean dumping shall be in accordance with the following: ++EP++

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Type of Waste - Digested or otherwise stabilized municipal sewage sludge.

Permittee Dry Tons Annually of Wet Tons Annually of Waste Waste Joint Mtg. 13,293 400,400

No amount of waste in excess of either the wet tonnage or dry tonnage shown above shall be ocean dumped.

20. Disposal Site - Transportation for the purpose of ocean dumping shall terminate at, and waste disposal shall be confined to, the Deepwater Municipal Sludge Dump Site (DMSDS). The area of the DMSDS is described below and on each navigational overlay.

Latitude: 38 degrees 40'00"N to 39 degrees 00'00" N

Longitude: 72 degrees 00'00"W to 72 degrees 05'00" W

21. Authorized Transport - The waste transporter shall use only the following towed vessel(s)/self-propelled vessel(s) for dumping of wastes authorized under this permit unless additional vessel(s) are authorized by EPA in writing after receipt of a written request by the waste transporter. ++EP++

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106-Mile Transport

Weeks 701/*/

Weeks 702/*/

Eileen/*/

Kimberly Ann/*/

Lisa/*/

Maria/*/

Morris J. Berman

Leo Frank/*/

Princess B

((/*/ These vessels can discharge at the interim discharge rates listed in Table 2, based upon the location and number of discharge ports, wake characterization, and dispersion characteristics.))

22. The master of the ocean dumping vessel (ie., tugboat or self-propelled vessel) shall submit an Ocean Dumping Notification Form (ODNF) which shall contain a navigational overlay of the dumping vessel's trackline during the dumping operation and all other information required on the ODNF (see Attachment No. 1). The navigational overlay shall clearly show the times and positions of the vessel at critical points (i.e., entry and exit from the dump site; beginning and end of dump, and points every two (2) hours along the discharge path). The overlay shall be signed and dated by the vessel master. The master of the vessel shall also be required to certify whether or not discharge requirements found in Condition No. 24 were met. The original ODNF along with the original Manifest form (s) (see Condition No. 27 b.) shall be forwarded within 72 hours after completion of the voyage to the EPA. Copies of the ODNF shall also be sent to the Coast Guard, waste transporter, and the permittee(s) whose waste was dumped, at the same time that the original is forwarded to the EPA.

23. The waste transporter shall install and utilize during the course of each nighttime dumping operation a spotlight, which shall be of sufficient intensity to illuminate the discharge immediately astern of the dumping vessel. The spotlight shall be sufficiently elevated so as to give ample coverage to the wake of the vessel, while at the same time maintaining the direction of the light beam vertically into the water column. The spotlight shall be fixed firmly into position and shall be installed on the vessel so as not to interfere with or to be confused with any other required navigational lights.

24. Discharge Rates - Discharge rates for the sewage sludge are based on the dilution required to meet the limiting permissible concentration (LPC) at the 4 hour initial mixing period. The required dilution is based on the LC50 of the most sensitive marine species tested and an application factor of 0.01. Dilutions that will occur are proportional to vessel speed. The nomographs shown in Figures 1 and 2 will be used to determine the discharge rate of the sewage sludge.

Required dilutions and discharge ratess for each permittee using the DMSDS are initially established as listed in Tables 1 and 2 and dependent upon vessel. ++EP++

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TABLE 1. MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 Kn

Discharge Rate (gal/min) Required Authority Dilution 3kn 4kn 5kn 6kn PVSC 58,800 210 280 350 420 MCUA 4,740 4,359 5,812 7265 8,719 BCUA 6,450 2,684 3,579 4,473 5,368 LRSA 166,700 73 97 122 145 RVSA 11,360 1,276 1,701 2,127 2,552 JMEUC 5,950 3,024 4,032 5040 6,048 NYCDEP 6,290 2,784 3,712 4,640 5,568 NCDPW 10,870 1,347 1,796 2,245 2,694 WCDEF 10,990 1,329 1,772 2,215 2,658 Authority 7kn 8kn 9kn 10kn PVSC 490 560 630 700 MCUA 10,171 11,624 13,078 14,530 BCUA 6,263 7,157 8,052 8,947 LRSA 170 195 218 243 RVSA 2,977 3,403 3,828 4,253 JMEUC 7,056 8,064 9,072 10,080 NYCDEP 6,496 7,424 8,352 9,280 NCDPW 3,143 3,592 4,041 4,490 WCDEF 3,101 3,544 3,987 4,430

TABLE 2. INTERIM MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 kn

Discharge Rate (gal/min) Required Authority Dilution 3kn 4kn 5kn 6kn PVSC 58,800 420 560 700 840 MCUA 4,740 8,718 11,624 14,530 15,500 BCUA 6,450 5,368 7,157 8,947 10,736 LRSA 166,700 146 195 243 292 RVSA 11,360 2,552 3,402 4,253 5,104 JMEUC 5,950 6,048 8,064 10,080 12,096 NYCDEP 6,290 5,568 7,424 9,280 11,136 NCDPW 10,870 2,694 3,592 4,490 5,388 WCDEF 10,990 2,658 3,544 4,430 5,316 Authority 7kn 8kn 9kn 10kn PVSC 980 1,120 1,260 1,400 MCUA 15,500 15,500 15,500 15,500 BCUA 12,525 14,315 15,500 15,500 LRSA 341 389 438 487 RVSA 5,955 6,805 7,656 8,507 JMEUC 14,112 15,500 15,500 15,500 NYCDEP 12,992 14,848 15,500 15,500 NCDPW 6,286 7,184 8,082 8,980 WCDEF 6,202 7,088 7,974 8,860

PVSC = Passaic Valley Sewerage Commissioners

MCUA = Middlesex County Utilities Authority

BCUA = Bergen County Utilities Authority

LRSA = Linden-Roselle Sewerage Authority

RVSA = Rahway Valley Sewerage Authority

JMEUC = Joint Meeting of Essex and Union Counties

NYCDEP = New York City Department of Environmental Protection

NCDPW = Nassau County department of Public Works

WCDEF = Westchester County Department of Environmental Facilities ++EP++

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FIGURE 1. NOMOGRAPH FOR DISCHARGE RATES GRAPH/CHART OMITTED ++EP++

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FIGURE 2. NOMOGRAPH FOR INTERIM DISCHARGE RATES GRAPH/CHART OMITTED ++EP++

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Based upon EPA's evaluation of the sludge characterization data required to be submitted by the permittee under permit Condition No. 25, discharge rate revisions may be issued on a quarterly basis. For toxicity based LPCs, the test species with the lowest LC50 and an application factor of 0.01 will be used to determine the required dilution. Chemical compounds in the liquid phase of the sludge may also be evaluated for establishing the required dilutions.

EPA will permit certain vessels (See Condition No. 21) to utilize the interim discharge rates specified in Table 2 until August 14, 1990, provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurements of the wake-induced initial mixing (0-5 min.) under an EPA approved protocol by May 14, 1990 to confirm the dispersion characteristics inherent in the rates. Failure to submit such a report by May 14, 1990 shall preclude the use of the interim discharge rates specified in Table 2 beyond that date. Upon EPA's analysis and written acceptance of such field measurements, Figure 2 (or an appropriate adjustment) may continue to be used to determine the discharge rates for such vessels beyond August 14, 1990. Under no circumstances shall a maximum discharge rate of 15,500 gallons per minute be exceeded.

Permittees may combine sludges from different treatment plants or from different sewerage authorities into single vessel loads. The discharge rate for such a vessel is established by the most toxic sludge loaded into the vessel. However, if the permittee(s) demonstrates to EPA that vessel loads are homogeneously mixed, the discharge rate for such combined vessel loads may be based on a weighted-average required dilution for the sludges in such vessels upon written approval from EPA.

Dumping Procedures

Sewage sludge shall be discharged within the DMSDS. Discharge shall occur while the dumping vessel is moving at a speed of not less than 3 knots over the ground along the appropriate discharge tracklines as shown in Figure 3. The first trackline, delineated by lanes A-B in Table 3, and as shown on Figure 3 shall be utilized by NYCDEP and NCDPW. The second trackline, delineated by lanes C-D in Table 3, and as shown on Figure 3 shall be utilized by the remaining permittees. Any vessel that can not ++EP++

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Deepwater Municipal Sludge Dump Site GRAPH/CHART OMITTED ++EP++ enter its own designated trackline because of traffic congestion within its trackline, may enter into the other designated trackline only under the following conditions:

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1. The vessel can not enter its own designated trackline without violating the permit provisions on allowable vessel spacing.

2. There is no more than one vessel in the other trackline.

3. The vessel in no way inhibits the movement or progress of any other vessel inside the trackline or causes any other vessel to wait before entering the trackline.

4. The vessel shall at all times yield right-of-way to all other vessels in the trackline.

5. Should the vessel in any way or at any time inhibit the progress or movement of any other vessel, including but not limited to; causing another vessel to discharge at a slower vessel speed than it would have otherwise traveled at, or by causing another vessel to wait outside of its own designated trackline, then said vessel shall immediately cease discharging and shall exit the site as soon as possible.

The track of the dumping vessel during discharge shall be limited to within one-quarter nautical mile of either side of the discharge trackline. No discharge shall occur within one-half nautical mile of the DMSDS's boundaries.

TABLE 3. DESIGNATED DISCHARGE TRACKLINES

HEADING START END LANE T LAT. (N) LONG. (W) LAT. (N) LONG. (W) A 180* 38* 59' 72* 04' 38* 41' 72* 04' B 000* 38* 41' 72* 03' 38* 58' 72* 03' C 180* 38* 58' 72* 02' 38* 41' 72* 02' D 000* 38* 41' 72* 01' 38* 59' 72* 01'

((/*/ degrees))

The turns at the end of each trackline shall not begin until the dumping vessel has reached the end of the trackline. During the turn, the track of the dumping vessel shall not extend more than one-half mile beyond the end of the trackline.

After dumping is completed and the vessel discharge valves are secured, the vessels may exit the dumpsite using any convenient route. The exiting vessel must yield right of way to all vessels dumping or about to enter the dumpsite. ++EP++

Vessels which are discharging must maintain a minimum 2 hour separation between them.

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They may not follow any discharge trackline any sooner than 2 hours after the trackline was made.

Allowable Discharge Rates during High Energy Conditions

Permittees will be allowed to discharge at five times their normal rates while sustained wind conditions within the designated site are at or above "Beaufort Force 5", as listed in Appendix No. 7, provided that in no case shall discharge rates exceed 15,500 gallons per minute.

In order to utilize this provision the towing vessel or self propelled vessel shall have installed and maintain appropriate wind speed instrumentation. A description of such instrumentation shall be submitted by the permittee to EPA within 30 days of permit issuance.

EPA will permit all vessels to utilize the allowable discharge rates during high energy conditions until August 14, 1990 provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurements of dispersion at "Beaufort Force 5" wind conditions under an EPA approved protocol by May 14, 1990 to confirm such increased dispersion. Failure to submit such a report by May 14, 1990 shall preclude the use of the above-mentioned five-fold increase in discharge rates beyond that date. Upon EPA's analysis and written acceptance of such field measurements, the five-fold increase (or an appropriate adjustment) may continue to be used beyond August 14, 1990.

25. MONITORING REQUIREMENTS - Several monitoring activities, as prescribed by the EPA Monitoring Plan for the Deepwater Municipal Sludge Dump Site are required of the permittee. Monitoring activities will be conducted under Tier 1, Tier 2, and Tier 3 of the disposal site monitoring plan. Sewage sludge characterization data required under Tier 1 of the monitoring plan shall be submitted to EPA on a regular basis by each permittee. Monitoring activities required under Tier 2 and Tier 3 shall be implemented by the permittee. Monitoring activities are described in the EPA document "Permittee Monitoring Requirements: 106-Mile Deepwater Municipal Sludge Disposal Monitoring Program".

Under Tier 1 of the monitoring plan, the permittee is required to submit sewage sludge characterization data. Tier 2 monitoring plan activities will include measurement of upper ocean currents and water column structure to characterize sludge dispersion at and near the disposal site. Activities under Tier 3 will include monitoring of water mass movement from the disposal site for evaluation of large scale water movement.

Within 45 days of permit issuance, the permittee shall submit to ++EP++

EPA a written quality assurance plan for implementation of Tier 2 and 3 activities.

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The permittee shall initiate Tier 2 and 3 activities within two and three months respectively of EPA approval of said quality assurance plan.

TIER 1 MONITORING REQUIREMENTS

Sludge characterization

Sample collection: For all characterization studies, representative sludge samples will be collected during vessel loading. Samples will be collected from a point on the discharge side of the pump delivering sludge from a digester or holding tank to a vessel being loaded for disposal at the disposal site. A flow-weighted composite sample, collected during the entire loading procedure, is required.

Permittees using an individual vessel to dispose of sludge from more than one treatment plant are required to characterize a sample composited from samples drawn from each compartment of the barge. Analysis of individual compartments shall be required to demonstrate the homogeneity of the sludge in the vessel, if the permittee chooses to request EPA approval to calculate disposal rates on the weighted-average required dilution of sludge entering the vessel.

Sample collection frequency: Samples shall be collected and analyzed at the following frequency:

Monthly - Parameters required to evaluate and set discharge rates.

1. 96-hour acute bioassay tests. The permittee may conduct quarterly bioassay tests at its option. Discharge rates shall be reduced based upon one quarterly sample, however test results from two consecutive quarters shall be required in order for discharge rates to become less restrictive.

2. Conventional parameters.

3. The following conventional pollutants: copper, lead, cadmium, and mercury in both the suspended particulate phase and the liquid phase of the sludge.

4. Chemical analysis and solid phase toxicity tests may be required on settleable solids, if settleable solids are found in the sludge.

Quarterly - Parameters required for evaluating loadings at the ++EP++ disposal site.

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1. Organic Priority pollutant compounds for which marine water quality criteria exist.

2. Conventional and nonconventional pollutants.

3. Both the suspended particulate and liquid phase shall be analyzed.

4. Floatable materials.

5. Volume of sludge generated and transported to the designated disposal site.

Semi-annually - Compounds excluded by the London Dumping Convention and organic priority pollutants.

1. Radioactivity.

2. Full organic priority pollutant scan.

3. These tests shall be conducted only on the suspended particulate phase unless settleable solids are found in the sludge. Chemical analysis on settleable solids may be required, if settleable solids are found in the sludge.

Analytical requirements: The Chemical, physical, and microbiological parameters that shall be reported by the permittee for samples collected shall include the following:

Parameters:

Conventional Parameters Biological Oxygen Demand Chemical Oxygen Demand Total Residue Total Organic Carbon Total Filterable Residue Specific Gravity Total Nonfilterable Residue pH Settleable Solids * Conventional and Nonconventional Pollutants Total Coliform Bacteria Arsenic Fecal Coliform Bacteria Cadmium Clostridium perfringens Chromium, hexavalent Fecal streptococcal Chromium, total Total Phosphate-Phosphorus Copper Total Kjeldahl-Nitrogen Lead Ammonia-Nitrogen Mercury Nitrate-Nitrogen Nickle ++EP++ Page 18 Oil and Grease Selenium Total Petroleum Hydrocarbons Vanadium Cyanide Phenols Zinc * Radioactivity Gross Alpha Gross Beta Radium-226 Radium-228 * Priority Pollutants

Sample analysis: All toxicity testing, physical characterization, and chemical characterization will be performed on the same sample.

All tests shall be completed within EPA approved holding times.

Tests of the suspended particulate phase and liquid phase of the sludge are required as defined in the Sample Collection Frequency section above.

Toxicity tests: 96-hour bioassay tests shall be conducted on the suspended particulate phase of the sludge using the test organisms Menidia menidia and Mysidopsis bahia and/or any substitute organism designated by EPA to be more appropriate. LC50 and 95 percent confidence interval shall be calculated by one of the following methods: binomial method, trimmed Spearman-Karber method, moving average method, or probit method. Justification for method selection must be included with each data package submitted to EPA. The LC50 shall be reported in mg/L of sludge and as the percentage of the whole sludge. Toxicity test shall be conducted under the guidance and procedures established by:

APHA, 1985, Standard Methods for the Examination of Water and Wastewater, 16th Edition. American Public Health Association, Washington, D.C.,

EPA, 1985. Methods for Measuring the Acute Toxicity of Effluents to Freshwater and Marine Organisms, 3rd Edition, (EPA/ 600/4-85-013),

EPA. 1987. Bioassay Procedures for the Ocean Disposal Permit Program. EPA 600/9-78-010. U.S. Environmental Protection Agency, Washington, D.C., or

in documents otherwise specified by EPA.

Physical and chemical characterizations: Analysis of conventional parameters and conventional pollutants shall be ++EP++ conducted by;

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1) Analytical procedures specified in EPA's Permittee Monitoring Requirements document or,

2) Test procedures selected by the permittee and approved by EPA.

Method detection limits and reporting units: Method detection limits required for the physical and chemical characterization listed in the following publications shall be required:

ASTM. 1985. Standard Methods for the Examination of Wastewater. American Public Health Association. 16th edition, Washington DC.

Test Methods for Evaluating Solid Waste. 1986. United States Environmental Protection Agency Office of Solid Waste and Emergency Responses, SW 846, 3rd Edition, Washington, DC.

Methods for chemical Analysis of Water and wastes. 1979. United States Environmental Protection Agency.

Environmental Monitoring and Support Laboratory. EPA-600/ 4-79-020.

Specific detection limits are summarized in EPA's Permittee Monitoring Requirements document.

Reporting units for all physical and chemical characteristics shall be in mg/L of sludge or as appropriate to the specific test. Conversion factors for calculating results on dry weight basis shall be included with all data.

Methods for floatable material will be specified by EPA.

Sample replication: Replicate analysis of the quarterly chemical monitoring data is required. Replication of the monthly data is required on at least two of the twelve samples analyzed each year.

Reporting requirements: All data shall be submitted to EPA no later than 45 days following sample collection. Laboratory quality control data shall be submitted with all analytical and toxicity data. A statement verifying that the data has been audited and found to be accurate shall be included with each data package.

Quality assurance plan: The permittee shall file with EPA a written quality assurance plan covering all sampling and testing procedures. The quality assurance plan shall follow the format described in EPA 556/2-88-001, "Guide for Preparation of Quality Assurance Project Plans for the National Estuarine Program". The ++EP++

quality assurance plan must be filed with EPA within 45 days of permit issuance.

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Monitoring may not begin before the quality assurance plan is submitted and approved by EPA.

Any change requested from the testing or analytical procedures listed in the approved quality assurance plan shall be submitted to EPA. Changes in approved testing procedures must be approved by EPA in writing prior to implementing the changes.

Testing laboratories: Within 45 days of permit issuance the permittee shall file, for approval by EPA, the name and address of the laboratory(s) designated to conduct testing.

Any change in the approved testing laboratory shall be immediately reported to EPA in writing.

Any laboratory employed for the purpose of performing the analyses and testing shall maintain a viable analytical quality control program. This program shall include:

1) Use of EPA Approved Methodologies as described in the Permittee Monitoring Requirements Document.

2) Use of EPA approved sample preservation techniques and holding times specified in the analytical and testing methods as prescribed in the EPA manual Test Methods for Evaluating Solid Waste. 1965 (SW-846).

3) Routine use and documentation of intra-laboratory quality control practices as recommended by the EPA manual Handbook for Analytical Quality Control in Water and Wastewater Laboratories. These practices shall include use and documentation of internal quality control samples, conduct audits, and data/report audits.

4) The laboratory facilities, data, records, and quality control records are subject to periodic inspection by EPA personnel.

5) EPA may require analysis of quality control samples by any laboratory employed for the purpose of compliance with this condition. Upon request, the permittee generator shall provide EPA with the analytical results from such samples.

TIER 2 MONITORING REQUIREMENTS

Permittee(s) shall be responsible for collecting information on water column structure and currents. Specifications for the deployment positions and navigational requirements for these measurements are included in EPA's Permittee Monitoring Requirements document. ++EP++

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Surface current shear in the ocean at the disposal site shall be obtained from expendable current meter (XCP) profiles.

XCP equipment shall be provided to one transport company. Acquisition of data from this probe need not be performed off the same barge.

XCP deployments shall be from a manned barge on a weekly basis.

Data acquired by this measurement shall be sent to EPA within 7 working days from collection.

Meteorological observations shall be required for each deployment of the XCP.

Permittees shall be required to perform additional Tier 2 monitoring to determine the nearfield fate and short-term effects of sludge dumping at the Deepwater Municipal Sludge Dump Site at the direction of EPA.

TIER 3 MONITORING REQUIREMENTS

Permittees shall be responsible for acquisition of data required to determine:

Water mass movement from the Deepwater Municipal Sludge Dump Site.

Evaluation of large-scale water movements.

Determine settling of sludge particles in the field.

Surface drifters:

Permittees shall launch one surface drifter per week from a manned vessel dumping sludge within the designated disposal site for tracking by ARGOS satellite.

Data shall be submitted to EPA for analysis.

The technical activity involved in deploying drifters shall be conducted by vessel crews upon training by EPA.

EPA may modify the drifter program based upon the data received.

26. In the event that any dump site monitoring, or plant inspection, or any surveillance activities reveal that floatables ++EP++ are being ocean dumped, or that a likely probability exists that floatables are being ocean dumped, the Regional Administrator or his delegate may require the permittee to screen each vessel load of waste for floatables before any dumping of said waste shall be allowed.

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27. Waste Manifest System a. Inspection - The permittee is required to maintain inspectors and is required to have one or more inspectors present before any of the permittee's waste is loaded onto a vessel. If a transfer of the permittee's waste occurs at a point other than at dock side of a permittee, the waste transporter shall provide an independent inspector, approved by EPA, to observe and record the transfer operation. Responsibilities and duties of the inspectors, for the purposes and terms of this permit condition, are described in Attachment No. 2.

All vessels shall be maintained with a system of sequentially numbered EPA seals which will be provided to the permittee by EPA. This system shall require that all discharge valves on all feeder vessels, with the following exception, be permanently sealed with approved EPA seals. Those valves that cannot be permanently sealed, due to their use for loading and unloading operations, shall be re-sealed by the inspector immediately upon completion of each transfer (loading or unloading). When ocean going vessels receive waste, all discharge valves shall be sealed prior to loading and all other valves shall be sealed immediately upon completion of each loading operation.

For the purposes and terms of this permit condition a feeder vessel is defined as any vessel that is used to transfer waste from one location to another. An ocean going vessel is defined as any vessel that is authorized to dispose of waste at the DMSDS. Any vessel that can be used as both a feeder vessel and an ocean going vessel shall at all times be considered an ocean going vessel.

No transfer of waste shall occur between a permittee and feeder vessel or ocean going vessel, or feeder vessel and ocean going vessel, if any seal is broken or missing, unless broken by the inspector to allow for such transfer or unless broken by the waste transporter on an ocean going vessel as described in the following paragraph. If any seal(s) is broken or missing, the vessel shall remain at dock side or transfer point and the inspector shall immediately notify EPA and/or the Coast Guard, and the permittee.

Prior to leaving for the DMSDS, all ocean going vessels shall have all of their valves sealed. Thereafter, no seal on the ocean going vessel shall be broken until said vessel enters the DMSDS, at which time the waste transporter shall break only those seal(s) necessary for the discharge operation. If it is ++EP++

determined that any seal(s) has been broken prior to such time, the vessel shall not be permitted to discharge any waste and shall immediately return to port unless permitted by the Coast Guard or EPA to proceed.

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The waste transporter shall provide for safe access (i.e., gangplank with safety rails, mechanically secured to either the dock or barge) to the barge from dock side. When two or more barges are moored side-by-side at dock side the waste transporter shall provide for safe at dock side the waste transporter shall provide for safe access (i.e., gangway with safety rails, mechanically secured to either of the barges) from barge to barge.

b. Waste Manifest Forms - Each time a waste transfer occurs a record of the transfer must be maintained by the permittee's inspector (when transfer occurs at dock side) and as applicable the independent waste transporter's inspector. The time of loading/unloading, location, arrival and departure time, and quantity of waste transferred as well as other required information shall be clearly indicated on the Inspector form (see Attachment No. 3). Such forms shall be submitted to EPA (original form) and the Coast Guard within 3 business days after completion of each loading or transfer operation.

In addition, the inspector shall record information on the transfer operation on the Manifest Form Attachment No. 4, retain a copy for his records and pass on such form to the vessel operator. The vessel operator shall surrender such form to the inspector at the next transfer point for the inspector's use. This procedure shall be repeated until the last transfer point, at which time the inspector recording the last transfer shall return the form to the vessel operator, who shall surrender the form to the master of the vessel on the ocean going vessel. Said form(s) (i.e., Attachment No. 4) shall then be attached to the ODNF and submitted to the EPA at the same time as the ODNF. Additionally, the waste transporter (vessel operator) shall also maintain a monthly log of the seal numbers and other information on the attached EPA form. This form (see Attachment No. 50 shall be maintained on each vessel and submitted to EPA (original form) and the Coast Guard within 10 calendar days of the end of each month.

c. Accountability - Each permittee and each waste transporter shall maintain a record that shows the date upon which each of the required forms, under this condition, was mailed by said permittee and said waste transporter to the EPA and the Coast Guard. Said record will be maintained on a monthly basis and shall be submitted to the EPA and the Coast Guard within 15 calendar days of the end of each month. All broken seals shall be returned to the EPA at the same time as the above mentioned record along with a listing of the seal identification numbers for the returned seals. ++EP++

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28. Notice to Regulatory Agencies - The waste transporter shall provide telephone notification of sailing to the Captain of the Port (COTP) at 212-668-7936 not later than two (2) hours prior to the estimated time of departure for the dump site designated in Condition No. 20. The waste transporter shall confirm the exact time of departure within thirty (30) minutes of the actual departure time, and shall immediately notify the COTP upon any changes in the estimated time of departure greater than one (1) hour.

The following information shall be provided in the notification of sailing.

(1) Permit number.

(2) Name of the towed vessel and tugboat, or self-propelled vessel.

(3) Name of the transporter.

(4) Type and quantity of waste being transported.

(5) Place of departure.

(6) Location of dump site.

(7) Time of departure.

(8) Estimated time of arrival at the dump site.

(9) Estimated time of departure from the dump site.

(10) Estimated time of return to port.

29. a. No vessel shall transport waste to the DMSDS for the purpose of dumping said waste unless a shiprider is on board, unless waived by the EPA Regional Administrator or his delegate. Said shipriders shall be approved by EPA and shall be supplied by the permittee.

b. The shiprider shall be provided with quarters including, at least, a bunk solely for his use plus access to sanitary toilet facilities. These quarters, as well as the shiprider's subsistence while on board, shall be provided by and shall be at the expense of the waste transporter. Further, should the return port be different from that of the port of departure, the shiprider shall be provided transportation to the port of departure at the expense of the waste transporter. The shiprider shall be treated courteously and afforded free and immediate access to all navigational capabilities on the vessel which can provide information on position, course speed, depth of water, bearing, etc., and to communications equipment.

c. The attached shiprider form (see Attachment No. 6) shall be completely filled out, signed and dated by the shiprider and shall be mailed to EPA within 72 hours after the completion of the voyage.

30. a. The waste transporter shall maintain and submit to EPA, the Captain of the Port (COTP) and the permittee(s) on a ++EP++

monthly basis Attachment No. 8 which identifies the following information:

Page 25

(1) Name of each vessel that departed port during the month and dumped waste at the designated dump site. Any vessel that commenced discharge operations at anytime during the month shall be reported in that month, regardless of when said discharge operation was completed.

(2) Date and time of departure of each vessel.

(3) COTP reference number for each vessel mission.

(4) Quantity of waste (gallons, wet tons) from each permittee (s) dumped by each vessel during each vessel mission.

(5) Date and time upon which each vessel commenced discharge operations.

(6) Date upon which each ODNF was mailed to EPA.

b. The permittee shall submit to EPA, on a monthly basis Attachment No. 9 which identifies the following information:

(1) Name of each vessel upon which any waste generated from permittee's facility was transferred to, at anytime during the month.

(2) Date and time that permittee commenced transferring waste to each vessel. Any waste transfer that commenced at anytime during the month, shall be reported in that month, regardless of when said waste transfer was completed.

(3) Date and time that permittee completed transfer of waste to each vessel.

(4) Quantity of waste (gallons, wet tons, dry tons) loaded onto each vessel.

c. Each report required by this condition shall be received by EPA and all other named parties, within 10 days of the end of the reporting period. First reporting period begins August 15, 1989, and ends on August 31, 1989. The first report shall be received by EPA on or before September 10, 1989, and ends on September 30, 1989. The second report shall be received by EPA on or before October 10, 1989 and such reporting shall continue monthly thereafter.

31. Reports and Correspondence - All reports and related correspondence required by the permit to be submitted to EPA shall be addressed as follows:

U.S. Environmental Protection Agency

Water Management Division ++EP++

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All reports and related correspondence required by the permit to be submitted to the U.S. Coast Guard shall be addressed as follows:

U.S. Coast Guard

Captain of the Port

Governors Island

New York, New York 10004

32. Liability - The permittee is liable for compliance with all Conditions, including Attachments, contained in this permit.

a. The permittee and waste transporter shall be jointly and severally liable for compliance with all Conditions, including Attachments of this permit with the exception of the following: Condition Nos. 25 and 30 (b).

b. Any person owning or operating a towing vessel employed for the purposes of the activities authorized by this permit, shall be jointly and severally liable together with the permittee and waste transporter for compliance with all Conditions including Attachments of this permit with the exception of the following: Condition Nos. 23, 25, 26, 29 (c), and 30.

By authority of Administrator

United States Environmental Protection Agency:

William J. Muszynski

Acting Regional Administrator

Signed this day of , 1989: ++EP++

Page ATT-1-1 ATTACHMENT No. 1 OCEAN DUMPING NOTIFICATION FORM (PLEASE PRINT OR TYPE)

I. COTP REFERENCE NUMBER:

NAME OF BARGE:

DATE AND TIME OF DEPARTURE FROM PORT:

DATE AND TIME OF RETURN TO PORT:

POINT OF DEPARTURE:

NAME OF TOWING COMPANY:

NAME OF TUGBOAT:

NAME AF WASTE TRANSPORTER:

II. TYPE OF MATERIAL DUMPED:

QUANTITY DUMPED (GALLONS and WET TONS):

III.

DATE TIME LATITUDE LONGITUDE

ARRIVED AT DUMPSITE: STARTED DUMP:

ENDED DUMP:

DEPARTED DUMPSITE:

IV.

SHOW ALL ORIGINS AND QUANTITIES.

QUANTITY PERMITTEE(S)

ALLONS WET TONS

TOTAL

NOTE: TOTAL SHOWN HERE MUST EQUAL THE QUANTITY DUMPED SHOWN IN SECTION II ABOVE.

REQUIRED DISCHARGE RATE

ACTUAL DISCHARGE RATE DURING DUMPING ++EP++

Page ATT-1-2

BARGE NAME

COTP REFERENCE NUMBER

V.

1. WHAT WAS THE MINIMUM VESSEL SPEED DURING THE DISCHARGE OPERATION?

NAUTICAL MILES PER HOUR.

2. WHAT WAS THE MAXIMUM VESSEL SPEED DURING THE DISCHARGE OPERATION?

NAUTICAL MILES PER HOUR.

4. WERE THE SLUDGE TANKS AT ANYTIME CLEANSED AND FLUSHED WITH SEA WATER? YES NO

IF YES COMPLETE THE FOLLOWING:

DATE TIME LATITUDE LONGITUDE START FLUSHING: END FLUSHING:

5. DESCRIBE WEATHER CONDITIONS DURING THE DISCHARGE OPERATION.

If Beaufort Force 5 (or greater) Wind Conditions:

Wind Wind Average Allowable Actual Sea Speed Dir. Vessel Discharge Discharge State (Knots) Speed Rate Rate Time Start Time End

6. GENERAL COMMENTS:

VI. TO THE BEST OF MY KNOWLEDGE, ALL APPLICABLE CONDITIONS OF THE U.S. ENVIRONMENTAL PROTECTION AGENCY'S OCEAN DUMPING PERMIT WERE MET.

SIGNATURE:

DATE:

PRINT NAME: ++EP++

Page ATT-1-3

This document contains a navigational overlay of the above named vessel's trackline during a dumping operation under the conditions of U.S. Environmental Protection Agency Permit Number . The overlay represents an accurate description of the time and position at critical points of the dumping operation, including entry and exit from the dump site; beginning and end of dump; and points every two (2) hours along the discharge trackline. As master of the vessel, I further certify that the dumping conditions of the applicable permit were met.

Date:

Signed:

COTP No.

Barge Name:

Deepwater Municipal Sludge Dump Site

THIS COLLECTION OF INFORMATION HAS BEEN SUBMITTED TO MINE OR FEWER PERSONS (PERMITTEES) AND THEREFORE IS NOT SUBJECT TO THE PAPERWORK REDUCTION ACT.

NAIL WITHIN 72 HOURS AFTER RETURN TO PORT TO THE FOLLOWING:

U.S. ENVIRONMENTAL PROTECTION AGENCY

WATER MANAGEMENT DIVISION

26 FEDERAL PLAZA

ROOM 805

NEW YORK, NEW YORK 20278

U.S. COAST GUARD

CAPTAIN OF THE PORT

GOVERNORS ISLAND

NEW YORK, NEW YORK 10004

(212) 668-7936

PICTURE/DIAGRAM/ILLUSTRATION OMITTED ++EP++

Page ATT-2-1 ATTACHMENT No. 2 RESPONSIBILITIES AND DUTIES OF INSPECTION PERSONNEL

1) All inspection personnel or their supervisor(s) shall be instructed in their duties and responsibilities by the EPA.

2) All inspection personnel must be approved by EPA.

3) An inspector may be an employee of a permittee.

4) The number of inspectors shall be limited to a reasonable number for each permittee.

5) During transfer operations the inspector shall not have any other responsibilities or duties other than those that are involved in the transfer operation with the exception of the following:

If there is a discontinuation in the transfer operation the inspector(s) may leave after sealing all un-sealed valves. Thereafter, the transfer operation shall not resume until an inspector(s) is present to break the seal(s).

6) An inspector shall be required to physically inspect each seal and record or verify the seal identification number.

7) An inspector is responsible for immediately notifying EPA and the Coast Guard of any permit violation.

AT LEAST ONE OF THE PHONE NUMBERS SHOWN BELOW CAN BE REACHED 24 HOURS A DAY 7 DAYS A WEEK.

U.S. ENVIRONMENTAL PROTECTION AGENCY (212) 264-5692

U.S. COAST GUARD (212) 668-7936 ++EP++

Page ATT-3-1 ATTACHMENT No. 3

Control No.

INSPECTOR FORM

Barge Name

Permittee(s)

NPDES Permit No.(s)

MPRSA Permit No.

Arrival Date

What location did barge come from

Departure Date

Full Name of Inspector

Full Name of Barge Operators

Name of Towing Vessel

Full Name of Vessel Master

Destination

1. Broken seals discovered prior to transfer?

2. Loss/discharge of sludge during transfer?

3. Any inconsistency between seal 's & barge leg?

Draft Date Time Fore Aft

Arrive Dock/Barge Start Loading End Loading Departure

Note: Indicate whether draft readings were taken port or starboard. All times are to be expressed in military time.

THIS COLLECTION OF INFORMATION HAS BEEN SUBMITTED TO MINE OR FEWER PERSONS (PERMITTEES) AND THEREFORE IS NOT SUBJECT TO THE PAPERWORK REDUCTION ACT. ++EP++

Page ATT-3-3 ATTACHMENT No.3

Control No.

Large Name

Date

IV.

Seals Broken Replacement Seals Valve Seal Value Seal

V.1. Were any of the seals broken or missing?

List value number(s) under "Comment"

If yes, was EPA or COTF and Permittee notified by the Inspector?

2. Do all seal numbers prior to transfer match the seal numbers maintained on the barge's log of seals?

If no, explain under "Comments"

3. Were there any disruptions in the loading/litering operation?

Specify under "Comments" ++EP++

Page ATT-3-4 ATTACHMENT No. 3

Control No.

Barge Name

Date

4. Were there any spills during the loading/litering operation?

If yes, explain under "Comments" and describe actions taken to mitigate harm to the environment.

Comments:

VI. I certify under penalty of law that I have personally examined and am familiar with the information submitted herein. I certify the submitted information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information; including the possibility of fine and imprisonment see 18 USC (ILLEGIBLE)1001. (Penalties under this statute may include fines up to $10,000 and maximum imprisonment of between 6 months and 5 years.)

Signature

Date

AT LEAST ONE OF THE PHONE NUMBERS SHOWN BELOW CAN BE REACHED 24 HOURS A DAY 7 DAYS A WEEK.

U.S. ENVIRONMENTAL PROTECTION AGENCY (212) 264-5692

U.S. COAST GUARD (212) 668-7936

Submit to the following within 72 hours of completion of transfer.

U.S. Environmental Protection

Agency

Water Management Division

Room 805

26 Federal Plaza

New York, New York 10278

U.S. Coast Guard

Governors Island

New York, New York 10004 ++EP++

Page ATT-4-1 ATTACHMENT No. 4 MANIFEST FORM

PICTURE/DIAGRAM/ILLUSTRATION OMITTED ++EP++

Page ATT-5-1 ATTACHMENT No. 5

(ILLEGIBLE)

THIS COLLECTION OF INFORMATION HAS BEEN SUBMITTED TO NINE OR FEWER PERSONS (PERMITTEES) AND THIREFORE IS NOT SUBJECT TO THE PAPERWORK REDUCTION ACT.

MONTHLY BARGE LOG

BARGE NAME:

SLUDGE VOLUMES (GALLONS)

Transfer Transfer Prior Control Transfer Begin End To Number Location Date/Time Date/Time Transfer Control Total After Next Number Transferred Transferred Destination

All times to be expressed in military time.

Signature: ++EP++

Page ATT-5-2

PICTURE/DIAGRAM/ILLUSTRATION OMITTED ++EP++

Page ATT-6-1 ATTACHMENT No. 6 SHIPRIDER FORM (PLEASE PRINT OR TYPE)

To: Environmental Protection Agency

Water Management Division

Room 805

New York, New York 10278 MPRSA

COTP Reference No.

Date of Departure

Permit No.

I. Full Name of Shiprider

Name of Employer

Name of Vessel Master

Name of Tugboat

Name of Barge

Departure Location

Time & Date of Departure

Quantity of Sludge Loaded onto Barge

(Gallons and Wet Tons)

Return Location

Time & Date of Return

II. Date Time Latitude Longitude :At Point of Departure :2 Hours after Leaving Port :10 Hours after Leaving Port :Arrival at Dump Site :Start of Discharge :End of Discharge :Exit Dump Site :Return to Port

All times to be expressed in military time

III.

1) Were there any disruptions (i.e., start/stop/start discharge) in the discharge operation? Yes No

if yes explain

2) What was the minimum vessel speed that you observed during the dumping operation? Nautical Miles Per Hour.

3) What was the maximum vessel speed that you observed during the dumping operation? Nautical Miles Per Hour.

4) Were you able to observed a sludge plume? Yes No

If no explain ++EP++

Page ATT-6-2 ATTACHMENT No. 6

5) Were the sludge tanks at anytime cleansed and flushed with Sea Water? Yes No

If yes complete the following:

Date Time Latitude Longitude Start Flushing: End Flushing:

6) Describe weather conditions during the discharge operation.

If Beaufort Force 5 (or greater) Wind Conditions:

Wind Wind Sea Speed Dir. State (knots) Time Start Time End

7) Did you see any other barge(s) inside the dump site? Yes No

If yes give date(s) and time(s) of sighting(s) and name(s) of barge( s0

General Comments:

V.

(ILLEGIBLE)

Signature

Print Name

Date

Submit to the following within 72 hours after return to port:

To: U.S. Environmental Protection Agency

Water Management Division

Room 805

26 Federal Plaza

New York, New York 10278

Att: Ocean Dumping Program ++EP++

Page ATT-7-1 ATTACHMENT No. 7 Beaufort Wind Scale Table Omitted ++EP++ Page ATT-8-1 ATTACHMENT No. 8

MONTHLY TRANSPORTATION AND DUMPING LOG

Waste Transporter:

Month/Year:

Departure Barge COTP Reference Volume Volume (By Permittee) Date/Time Name Name Gallons Wet Tons Gallons Monthly Totals Departure Start of Dis. Date ODNF Date/Time Date/Time Mailed to EPA Monthly Totals ++EP++ Page ATT-9-1 ATTACHMENT No. 9 MONTHLY SLUDGE VOLUME LOG

Permittee:

Month/Year:

Loading Started Barge Loading Completed Quantity Date/Time Name Date/Time Gallons Wet Tons Dry

Tons

Monthly Totals ++EP++ TRUST AGREEMENT

Trust Agreement, the "Agreement," entered into as of August 2, 1989 by and between Joint Meeting of Essex and Union Countries a New Jersey municipal corporations organized in Joint Meeting, the "Grantor," and Harry Stevenson, Certified Public Accountant the "Trustee."

Whereas, the Ocean Dumping Ban Act of 1988, "the Act," establishes certain requirements applicable to the Grantor, including payment of fees and/or penalties into a trust account to fund certain projects to attain the public purpose of terminating the Grantor's ocean dumping,

Whereas, the United States Environmental Protection Agency, "EPA," exercising its authority under the Act, has determined that this Trust Agreement provides for a satisfactory trust account to implement the public purpose of the Ocean Dumping Ban Act of 1988,

Whereas, the Grantor, acting through its duly authorized officers, has selected the Trustee to be the trustee under this Agreement, and EPA has approved this selection of trustee, and the Trustee is willing to act as trustee,

Now, Therefore, the Grantor and the Trustee agree as follows:

Section 1. Definitions. As used in this Agreement:

(a) The term "Grantor" means the Joint Meeting of Essex and Union Counties the person dumping sewage sludge into ocean waters, who enters into this Agreement, and any successors or assigns of the Grantor,

(b) The term "Trustee" means the Trustee who enters into this Agreement and any successor Trustee.

(c) The term "Regional Administrator" means the Regional Administrator of Region II of the United States Environmental Protection Agency.

Section 2. Purpose and Restrictions on Use of Trust Fund. It is the intent of the Grantor and the Trustee that this Fund be established for the benefit of the Grantor to assist it in attaining the purposes of the Ocean Dumping Ban Act of 1988 and that the trust fund and the income thereof shall be used only for costs incurred after August 14, 1989, for projects which will identify, develop, and implement:

(a) an alternative system, and any interim measures, for the management of sewage sludge, including but not limited to any such system or measures utilizing resource recovery, recycling, thermal reduction, or composting techniques; or ++EP++

(b) improvements in pretreatment, treatment, and storage techniques for sewage sludge to facilitate the implementation of such alternative system or interim measures.

Section 3. Establishment and Extent of Fund. The Grantor hereby establishes a trust fund, the "Fund," for the uses and purposes set forth in this Agreement. The Fund is established initially as consisting of cash, which is acceptable to the Trustee. Such cash and any other cash subsequently transferred to the Trustee is referred to as the Fund, together with all earnings and profits thereon, less any payments or distributions made by the Trustee pursuant to this Agreement. The Fund shall be held by the Trustee, IN TRUST, as hereinafter provided. The Trustee shall not be responsible nor shall it undertake any responsibility for the amount or adequacy of, nor any duty to collect from the Grantor, any payments necessary to discharge any liabilities of the Grantor established by EPA. Notwithstanding the fact that the Grantor may have deposited sums in excess of those required by the Consent Decree, attached hereto, into the Fund, the EPA and the State's interest in the Fund is limited to the amounts set forth in the Consent Decree.

Section 4. Payments Comprising the Fund. Payments made to the Trustee for the Fund shall consist of checks or wire transfers.

Section 5. Instructions to the Trustee. Except as provided in Sections 6, 7, and 17 of this Agreement, all orders, requests, and instructions to the Trustee shall be in writing, signed by the Grantor or his representative as designated in the attached Exhibit A and the EPA Regional Administrator or his representative as designated in the attached Exhibit B. The Trustee shall act and shall be fully protected in acting in accordance with such orders, requests, and instructions. The Trustee shall have the right to assume, in the absence of written notice to the contrary, that no event constituting a change or a termination of the authority of any person to act on behalf of the Grantor or the EPA Regional Administrator hereunder has occurred. The Trustee shall have no duty to act in the absence of such orders, requests, and instructions from the Grantor and the EPA Regional Administrator, except as provided for herein.

Section 6. Payment for Authorized Costs. Upon the written request of the Grantor, the Trustee shall disburse funds from the Trust Fund to the Grantor for the payment of costs related to projects qualifying under Section 2 of this Agreement in accordance with the scope of work and payment schedule approved by the EPA Regional Administrator according to the procedures established by Paragraph VIII. I., J., and K. of the Consent Decree attached as Exhibit C to this Agreement. The Grantor may submit payment requests no more frequently than monthly. The Trustee's disbursement of funds shall not exceed the cumulative amounts associated with the scope of work and payment schedule approved by the Regional Administrator. The Trustee shall not be obligated to dispense amounts in excess of the amounts currently available in the trust fund.

Section 7. Trustee Management. The Trustee shall invest and reinvest the principal and income of the Fund and keep the Fund invested as a single fund, without distinction between principal and income, in accordance with general investment policies and guidelines which the Grantor may communicate in writing to the Trustee from time to time, subject, however, to the provisions ++EP++ of Section 5 and this Section.

Page 3

In investing, reinvesting, exchanging, selling, and managing the Fund, the Trustee shall discharge his duties with respect to the trust fund solely in the interest of the public purpose for which the trust was established and with the care, skill, prudence, and diligence under the circumstances then prevailing which persons of prudence, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of a like character and with like aims; except that:

(a) Securities or other obligations of the Grantor, or any other entity conducting or contracting to carry out the dumping of sewage sludge into ocean waters or any alternatives to ocean dumping, or any of their affiliates as defined in the Investment Company Act of 1940, as amended, 15 U.S.C. 80a-2(a), shall not be acquired or held, unless they are securities or other obligations of the Federal or a State government;

(b) The Trustee is authorized to invest the Fund in time or demand deposits, to the extent insured by an agency of the Federal government; and

(c) The Trustee is authorized to hold cash awaiting investment or distribution uninvested for a reasonable time and without liability for the payment of interest thereon.

Section 8. Commingling and Investment. The Trustee is expressly authorized in its discretion:

(a) To transfer from time to time any or all of the assets of the Fund to any common, commingled, or collective trust fund created by the Trustee in which the Fund is eligible to participate, subject to all of the provisions thereof, to be commingled with the assets of other trusts participating therein; and

(b) To purchase shares in any investment company registered under the Investment Company Act of 1940, 15 U.S.C. 80a-1 et seq., including investment companies which may be created, managed, underwritten, or to which investment advice is rendered or the shares of which are sold by the Trustee. The Trustee may vote such shares in its discretion.

Section 9. Express Powers of Trustee. Without in any way limiting the powers and discretions conferred upon the Trustee by the other provisions of this Agreement or by law, the Trustee is expressly authorized and empowered:

(a) To sell, exchange, convey, transfer, or otherwise dispose of any property held by it, by public or private sale. No person dealing with the Trustee shall be bound to see to the application of the purchase money or to inquire into the validity or expediency of any such sale or other disposition;

(b) To make, execute, acknowledge, and deliver any and all documents of transfer and conveyance and any and all other instruments that may be necessary or appropriate to carry out the powers herein granted;

(c) register any securities held in the Fund in its own name or in the name of nominee and to hold any security in bearer form or in book entry, ++EP++

or to combine certificates representing such securities with certificates of the same issue held by the Trustee in other fiduciary capacities, or to deposit or arrange for the deposit of such securities in a qualified central depositary even though, when so deposited, such securities may be mered and held in bulg i the name of the nominee of such depositary with other securities deposited therein by another person, or to deposit or arrange for the deposit of any securities issued by the United States Government, or any agency or instrumentally thereof, with a Federal Reserve Bank, but the books and records of the Trustee shall at all times show that all such securities are part of the Fund; and

Page 4

(d) To deposit any cash in the Fund in interest-bearing accounts maintained in or savings certificates of any banking institution, to the extent insured by an agency of the Federal or State government.

Section 10. Taxes and Expenses. All taxes of any kind that may be assessed or levied against or in respect of the Fund and all brokerage commissions incurred by the Fund shall be paid from the Fund.

Section 11. Annual Audit and valuation. The Trustee shall annually obtain an independently conducted audit and accounting of Trustee's management of the Fund, which shall list and describe all payments into the Fund and all investments of and disbursements from the Fund, including both payments to the Grantor for the public purposes for which the Fund was established and all expenses and fees paid to or by the trustee. The Trustee shall furnish to the Grantor and to the EPA Regional Administrator a copy of the annual audit and accounting and a statement confirming the value of the Trust. Any securities in the Fund shall be valued at market value as of the end of a calendar year. Such audit report shall be submitted to the Grantor and to the EPA Regional Administrator within 90 days after the end of each calendar year and within 90 days of termination of this agreement. Expenses incurred by the Trustee for fees for obtaining the independently conducted audit and accounting of the Trust, to the extent not paid directly by the Grantor, shall be paid from the Fund.

Section 12. Advice of Counsel. The Trustee may from time to time consult with counsel with respect to any question arising as to the construction of this Agreement or any action to be taken hereunder. The Trustee shall be fully protected, to the extent permitted by law, in acting upon the advice of counsel. Expenses incurred by the Trustee for fees for legal services rendered to the Trustee in connection with the administration of this Trust, to the extent not paid directly by the grantor, shall be paid from the Fund.

Section 13. Trustee Compensation. The Trustee shall be entitled to reasonable compensation for its services as agreed upon in writing from time to time with the Grantor.

Section 14. Successor Trustee. The Trustee may resign or the Grantor may replace the Trustee, but such resignation or replacement shall not be effective until the Grantor has appointed a successor trustee, the successor trustee has been approved in writing by the EPA Regional Administrator (such approval shall not be unreasonably withheld) and this successor accepts the appointment. The successor trustee shall have the same powers and duties as those conferred upon the Trustee hereunder. Upon the successor trustee's ++EP++ acceptance of the appointment, the Trustee shall assign, transfer, and pay over to the successor trustee the funds and properties then constituting the Fund.

Page 5

If for any reason the Grantor cannot or does not act in the event of the resignation of the Trustee, the Trustee may apply to a court of competent jurisdiction for the appointment of a successor trustee or for instructions and shall notify the EPA Regional Administrator in writing of such application. The successor trustee shall specify the date on which it assumes administration of the trust in a writing sent to the Grantor, the EPA Regional Administrator and the present Trustee by certified mail 10 days before such change becomes effective. Any expenses incurred by the Trustee as a result of any of the acts contemplated by this Section shall be paid as provided in Section 10.

Section 15. Payment and Notice of Payment or Nonpayment. The Grantor shall make payments to the Fund on a quarterly basis on the last day of the month following a calendar quarter, if necessary, should previous payments into the fund, less cumulative expenditures, be less than amounts due under Paragraph VIII.E of the Consent Decree. The Trustee shall notify the EPA Regional Administrator of the receipt and the amount of any payment from the Grantor, by certified mail within 10 days of receiving such payment. The Trustee shall notify the Grantor and the EPA Regional Administrator, by certified mail within 10 days following the date any quarterly payment is due, if no payment is received from the Grantor during that period.

Section 16. Amendment of Agreement. This Agreement may be amended by an instrument in writing executed by the Grantor, the Trustee, and the EPA Regional Administrator, or by the Trustee and the EPA Regional Administrator if the Grantor ceases to exist.

Section 17. Forfeiture of the Fund. In accordance with Paragraph VIII.G of the Consent Decree attached as Exhibit C to this Agreement, the Trustee shall, if directed in writing by the EPA Regional Administrator, pay the balance of the amounts in the Fund, less trust administration expenses, to the State of New Jersey for deposit into the State's water pollution control revolving fund, established under title VI of the Federal Water Pollution Control Act. Pursuant to Paragraph VIII.G. of the Consent Decree, the EPA Regional Administrator may direct the Trustee to stop further payments to the Grantor by withdrawing approval to the scope of work or payment schedule required under Section 6. In the event of a forfeiture, the EPA and the State shall not be entitled to any amounts the Grantor may have deposited into the trust account that are greater than the statutory amounts (i. e., amounts greater than the statutory assessments pursuant to 33 U.S. C. Sub-Section1414b(b)(2) and 1414b(d)(2) less any authorized expenditures).

Section 18. Irrevocability and Termination. Subject to the right of the parties to amend this Agreement as provided in Section 16, this Trust shall be irrevocable and shall continue until terminated at the written agreement of the Grantor, the Trustee, and the EPA Regional Administrator, or by the Trustee and the EPA Regional Administrator, if the Grantor ceases to exist. Except as provided under Section 17, upon termination of the Trust, all remaining trust property, less final trust administration expenses, shall be paid to the Grantor for use: ++EP++

Page 6

(a) for debts incurred by the Grantor in complying with the Act or the Federal Water Pollution Control Act;

(b) in meeting the requirements of the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.) which apply to the Grantor, including operations and maintenance; and

(c) for matching Federal grants.

Section 19. Immunity and Indemnification. The Trustee shall not incur personal liability of any nature in connection with any act or omission, made in good faith, in the administration of this Trust, or in carrying out any directions by the Grantor and the EPA Regional Administrator issued in accordance with this Agreement. The Trustee shall be indemnified and saved harmless by the Grantor or from the Trust Fund, or both, from and against any personal liability to which the Trustee may be subjected by reason of any act or conduct in its official capacity, including all expenses reasonably incurred in its defense in the event the Grantor fails to provide such defense.

Section 20. Choice of Law. This Agreement shall be administered, construed, and enforced according to the laws of the State of New Jersey.

Section 21. Interpretation. As used in this Agreement, words in the singular include the plural and words in the plural include the singular. The descriptive headings for each Section of this Agreement shall not affect the interpretation of the legal efficacy of this Agreement.

In Witness Whereof the parties have caused this Agreement to be executed by their respective officers duly authorized and their corporate seals to be hereunto affixed and attested as of the date first above written.

(Signature of Grantor)

(Title)

/s/ Robert H. Grasmere

Robert H. Grasmere, Chairman

Attest:

(Title)

(Seal)

(Signature of Trustee)

/s/ Michael J. Brinker Jr.

Michael J. Brinker, Jr., Executive Director

/s/ Harry Stevenson

Harry Stevenson, CPA

Attest:

(Title)

(Seal) ++EP++

Page 7 FORM OF ACKNOWLEDGEMENT

State of New Jersey County of Union, ss.

Be It Remembered that on this 2nd day of August, 1989, in the County and State aforesaid, before me, the subscriber, a Notary Public authorized to take acknowledgements and proofs in said county and State, personally appeared Michael J. Brinker, Jr., to me known, who being by me duly sworn he is Executive Director of the Joint Meeting of Essex and Union Counties the grantor of the foregoing trust fund, who executed the foregoing instrument and he did acknowledge that he signed, sealed, and delivered the same by his act and deed for the uses and purposes therein expressed. ++EP++

Page 8 EXHIBIT A

AUTHORIZED SIGNATURES OF AUTHORIZED REPRESENTATIVE(S) OF GRANTOR

Grantor: Joint Meeting of Essex & Union Counties

500 South First Street

Elizabeth, NJ 07202

Tel: 201-353-1313

Authorized Representative(s):

Name Position Signature Robert H. Grasmere Chairman /s/ Michael J. Brinker, Jr. Executive Director /s/ ++EP++ Page 9 EXHIBIT B

SIGNATURES OF EPA's AUTHORIZED REPRESENTATIVE(S)

Authorized Representative(s):

Effective Date Name Position of Authorization Signature ++EP++

PASSAIC VALLEY (PVSC)

DOC 02 OF 02

Consent Decree

02-89-C028

MPRSA

MUNI

19890907

19890907

NJD065816969

PASSAIC VALLEY SEWERAGE COMMISSION

NEWARK, NJ

89-3340

02

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA, and STATE OF NEW JERSEY, Plaintiffs,

v.

PASSAIC VALLEY SEWERAGE COMMISSIONERS, Defendant.

CIVIL ACTION NO. 89-3340

CONSENT DECREE

WHEREAS, the United States and the Environmental Protection Agency ("EPA"), the State of New Jersey ("the State"), on behalf of the New Jersey Department of Environmental Protection ("NJDEP") and the Passaic Valley Sewerage Commissioners ("PVSC" or "the Defendant") enter into this Consent Decree to ensure the phasing out and termination of ocean dumping and the transportation for the purpose of ocean dumping, of sewage sludge pursuant to the Ocean Dumping Ban Act of 1988 ("the Ban Act"), P.L. 100-688; and

WHEREAS, the New Jersey Ocean Sludge Dumping Elimination Act, L. 1988, C.57 supplementing the New Jersey Water Pollution Control Act, N. J.S.A. 58 10A-1 et seq. ("the New Jersey Ban Act") ++EP++

requires that ocean dumping of sludge by New Jersey municipal treatment works be terminated by March 17, 1991; and

Page 2

WHEREAS, the United States, EPA, the State and the Defendant have each consented to the making and entering of this Consent Decree, without trial or adjudication of any issues of fact or law and without this Decree constituting any admission by any party with respect to any such issues, and the Court having considered the matter and being duly advised, and it being in the public interest, it is hereby ORDERED and DECREED as follows:

JURISDICTION

I. This Court has jurisdiction over the subject matter and over the parties hereto under 28 U.S.C. Section 1345, and 33 U.S.C. Section 1415. The Court finds that it has jurisdiction and that Plaintiffs' complaint states a claim upon which relief may be granted.

APPLICATION AND BINDING EFFECT

II. The provisions of this Consent Decree ("Decree") shall apply to and be binding upon all parties to this Decree, their officers, directors, agents, servants, employees, successors, assigns, contractors, and all persons, firms and corporations in active concert or participation with them. Prior to any transfer of ownership or operation of the Defendant's publicly owned treatment works, the Defendant shall give written notice of this Decree to any successor(s) in interest and shall simultaneously notify, in writing, EPA and the State that such notice has been given to each successor in interest. ++EP++

Page 3 PHASE OUT OF OCEAN DUMPING

III. The Defendant shall cease ocean dumping of sewage sludge by March 17, 1991. Until cessation of ocean dumping and final implementation of the alternative system of sewage sludge management, the Defendant shall comply with all requirements of this Decree and of any final ocean dumping permit that may be issued under the Marine Protection, Research, and Sanctuaries Act of 1972, as amended, 33 U.S. C. 1401 et seq. ("MPRSA" or "the Act"). No ocean dumping or transportation for the purpose of ocean dumping of sewage sludge shall be conducted after August 14, 1989, unless prior to such activity the Defendant has obtained a new, effective, final ocean dumping permit under Section 102 of the MPRSA, 33 U.S.C. 1412. Defendant shall comply with all terms and conditions of any final permit issued pursuant to the MPRSA during the pendency of this Decree. In the event that any part of the final permit is challenged or stayed, the Defendant shall comply with all terms and conditions of the draft final permit, attached hereto and incorporated herein as Attachment A, during the pendency of such challenge. In any permit enforcement proceeding Defendant reserves all defenses available to it at law, other than defenses relating to the lawfulness of the permit and of its terms and conditions. Should ocean dumping continue under this Decree beyond the effective term of the permit, and no new permit be issued, the terms and conditions of the most recent permit issued to the Defendant ++EP++

after May 31, 1989, shall continue to be complied with as conditions of this Decree.

Page 4 IV. SCHEDULES FOR IMPLEMENTATION

OF AN ALTERNATATE SYSTEM

IV.A. The PVSC shall implement the following plan for an alternate system for the management and disposal of sewage sludge transported or dumped by the PVSC: on site dewatering and to landfill its sludge on an interim basis and to incinerate sludge on a long term basis as described in its April, 1989 submission to the State and as determined by the State to be acceptable.

IV.B. In implementing its plan for an alternative system of sewage sludge management and disposal, PVSC shall comply with the following schedule:

1. Completion of detailed sludge management plan and submittal of plan for selected alternative system by April 30, 1989.

2. Receive determination from New Jersey Department of Environmental Protection for the selected alternative system identified in the sludge management plan by July 15, 1989.

3./*/ Submission of complete air permit application by December 31, 1989.

((/*/ The State will determine within 30 days of a permit application, whether a permit application is satisfactory for purposes of determining compliance with the milestones set forth in paragraph IV of this Decree. Notwithstanding the fact that the permit application was satisfactory at the time it was submitted, the State reserves the right to require additional information while reviewing the permit application in order to develop a draft determination on the permit or a draft permit with appropriate extensions to subsequent milestones being made in accordance with paragraph X of this Decree, where defendant's application was satisfactory.))

4. Receive draft determination on air permit from New Jersey Department of Environmental Protection by June 30, 1990 and final determination by November 30, 1990.

5. Establishment of local pretreatment limits as necessary for the long term alternative system by July 1, 1993.

6. Advertise or solicit proposals for preparation of final engineering designs and related specifications for the selected alternative system by November 20, 1990.

7. Award contract for preparation of final engineering designs and related specifications for the selected alternative system by January 31, 1991. ++EP++

Page 5

8. Complete preparation of final engineering designs and related specifications for the alternative system selected by December 31, 1992.

9. Submit application for the Treatment Works Approval Stage II for the alternative system selected by January 2, 1993.

10. Receive determination on Treatment Works Approval Stage II from New Jersey Department of Environmental Protection for the alternative system selected by April 2, 1993.

11. Advertise for bids for procurement of necessary equipment and construction of necessary facilities for the alternative system by April 1, 1993.

12. Award contracts for procurement of necessary equipment and construction of necessary facilities for the alternative system by July 1, 1993.

13. Commence onsite construction activities for the alternative system selected by October 1, 1993.

14. Complete all construction related activities necessary for operation by June 30, 1996.

15. Commence testing of the alternative system by July 1, 1996.

16. Achieve compliance with all sludge quality criteria requirements for the selected long term sludge management alternative by July 1, 1996.

17. Complete testing of alternative system and commence full operation of alternative system by December 31, 1996.

IV.C. The PVSC shall shall implement interim alternative measures to ensure that its ocean disposal of sewage sludge is ++EP++ terminated by March 17, 1991 in accordance with the following schedule:

Page 6

1. Complete final design of sludge dewatering facilities by November 1, 1989.

2. Receive determination for the Treatment Works Approval Stage II from New Jersey Department of Environmental Protection by October 15, 1989.

3. Advertise for bids for sludge dewatering facilities by December 1, 1989.

4. Award contracts for sludge dewatering facilities by January 2, 1990.

5. Issue notice to proceed for construction activities of sludge dewatering facilities by February 2, 1990.

6. Secure contracts for interim management of sewage sludge which shall include sufficient back-up capacity for the period of time from March 17, 1991 to date upon which alternative system of systems become operational by October 31, 1990.

7. Complete all construction related activities necessary for operation, including shakedown, and initiate operation of sludge dewatering facilities and cease ocean disposal by March 17, 1991.

V. REPORTS AND CERTIFICATIONS

A. Beginning with the second calendar month after entry of this Decree, and continuing monthly thereafter until Defendant ceases ocean disposal of sewage sludge, the Defendant shall submit in writing to EPA and the State a report and certification detailing the status and progress of the interim measures under paragraph IV for phasing out and terminating ocean dumping of sewage sludge and for implementing its interim system of land based sludge management.

B. Commencing with the second calendar month after entry of this Decree, the Defendant shall submit quarterly ++EP++

reports and certifications concerning its progress in implementing its long term alternative land-based system of sludge management.

Page 7

C. The reports required by this paragraph shall include a description of the work performed in the previous period and a projection of the work to be performed during the following twelve month period pursuant to this Decree. The duly authorized representative ("representative") is the person with knowledge and authority to make the reports and to certify as to their accuracy as follows. The representative shall certify in the form for certifications of Discharge Monitoring Reports under the Clean Water Act, as set out at 40 C.F.R. 122.22(d), that the Defendant has met all schedule milestone in the prior period, and that the Defendant continues to be on schedule to meet all schedule milestones as set forth in paragraph IV of this Decree. Where the representative is unable to certify compliance, he or she shall identify the noncompliance, the reasons for such noncompliance, and the measures being taken to remedy the noncompliance. The Defendant shall submit such reports and certifications of compliance by certified mail, return receipt requested within 15 days of the end of the reporting period. Reports and certifications indicating that the Defendant is not in compliance with the Decree shall also be submitted by either telefax or express mail.

D. Within 15 days of each milestone date specified in the schedules in paragraph IV, the Defendant shall submit in ++EP++

writing to EPA and the State a report setting forth in detail whether or not the Defendant has complied in full with the requirement and if not, the work remaining to be done to achieve full compliance and a schedule for completion of such work.

Page 8

If a schedule milestone date is not met, the representative shall state what impact, if any, there will be on compliance with the final schedule dates in paragraph IV, and subsequently prepare and submit an acceleration plan to ensure that schedule dates in paragraph IV will be complied with to the extent possible. Defendant may incorporate this information in monthly or quarterly reports required by subparagraph A of this paragraph, provided that the Defendant does so within 31 days of a milestone if the milestone is timely achieved or within 15 days of a milestone if such milestone is not met.

E. The EPA and the State shall confer quarterly to evaluate the compliance of the Defendant with the schedules established in paragraph IV above. Upon 15 days notice from either EPA or the State, the Defendant shall provide a properly informed and authorized representative for such conference to discuss progress and problems in the planning, design and construction of the alternative systems for sludge management and the interim measures needed to eliminate the ocean disposal of sewage sludge.

F. The Defendant shall submit to EPA and the State a quarterly report detailing the following: (1) the volume of sludge disposed of in the ocean during the preceding quarter; (2) ++EP++

the dollar amounts pursuant to paragraph VIII of this Decree for the volume of sludge disposed of in the ocean; (3) the date and amounts of payments made in accordance with paragraph VIII of this Decree by Defendant; and (4) verification of payment and sufficient documentation of payments by defendant's auditors (including documentation that appropriate payments were made) for all payments due in the reporting period.

Page 9

This report shall be submitted by the fifteenth day of the second month following the end of the calendar quarter. The first report shall be submitted by November 15, 1989.

G. The Governor of the State shall submit to the Administrator of EPA on September 30 of each year, commencing with 1989, a progress report as required by Section 104B(h) of the MPRSA, 33 U.S.C. 1414b(h). Failure to submit such a report shall result in a withholding of funds from the State pursuant to Section 104B(h)(2) of the MPRSA, 33 U.S.C. 1414(h)(2).

VI. PROGRAM OVERSIGHT BY DEFENDANT

A. Within 30 days of the date of entry of this Decree the Defendant shall designate a duly authorized representative whose responsibility shall be to oversee the Defendant's program for construction of the interim and alternative sludge management facilities and to file the reports required by this Decree.

B. Such representative shall have, at a minimum, the following responsibilities:

(1) facilitating the coordination of the Defendant's activities among its various departments and agencies ++EP++

in order to expedite and facilitate compliance with the terms of this Decree;

Page 10

(2) attending quarterly progress meetings (as described in paragraph V.E above) among the parties or designating an acceptable representative to do so; and

(3) timely filing all reports required by this Decree.

VII. STIPULATED PENALTIES

The amounts set forth herein shall be the stipulated civil penalties under the Act and the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for the following specifically enumerated violations of paragraphs IV and V.

A. If the Defendant fails to comply with the specified deadlines and requirements of paragraph IV of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Non-compliance Violation or Violation Per Day 1-30 $ 5,000 31-60 $ 10,000 Beyond 60 Days $ 25,000

Payments shall commence within thirty days of demand and shall become due and payable monthly thereafter.

B. If the Defendant fails to comply with any applicable requirements of paragraph V of this Decree, the Defendant shall pay stipulated penalties in the ++EP++ following amounts for each day of each and every violation of said requirements:

Page 11 Days of Penalty Noncompliance Violation or Violation Per Day 1-30 $100 31-60 $200 Beyond 60 Days $500

Payments shall commence not later than thirty days from the date of the violation and shall become due and payable monthly thereafter.

C. The stipulated penalties set forth in subparagraphs A and B above shall begin to accrue on the day that performance is due or the non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance. Each separate violation of this Decree shall constitute a separate penalty event, and nothing herein shall prevent the simultaneous accrual of separate penalties for separate violations of this Decree. In the event that stipulated penalties are payable to the Plaintiffs under this Decree and subject to subparagraph D and E, herein, fifty (50) percent of such penalty shall be paid to the United States and fifty (50) percent of such penalty shall be paid to the State. Penalties due to the United States shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the United States," to the United States Attorney for the District of New Jersey with a copy to EPA and to New Jersey DEP. Penalties due to the State ++EP++

shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the State of New Jersey," to the New Jersey Department of Environmental Protection, Bureau of Revenue, CN 402, Trenton, New Jersey 08625 with a copy to EPA.

Page 12

Interest shall accrue on any stipulated penalty not paid when due at the rate established by the Department of the Treasury under 31 U.S.C. Section 3717.

D. 1. Stipulated penalties for failure to meet milestone events for its interim measures (schedule elements IV.C.) shall be forgiven if the Defendant ceases ocean disposal of all of its sewage sludge by March 17, 1991, provided that Defendant has paid in the time frames provided for herein, all amounts demanded for alleged violations of those provisions of the Decree into an escrow account acceptable to the Court and to the Plaintiffs. If the Defendant for any reason fails to pay into escrow any amounts demanded, either pending adjudication of the claimed noncompliance or pending its ceasing of ocean disposal on or before March 17, 1991, this forgiveness provision shall be of no effect and such stipulated penalties as are due and owing because of Defendant's failure to meet an earlier milestone event shall be paid to the Plaintiffs. The interest earned on stipulated penalties paid into escrow shall be paid over to whichever party is entitled to the principal.

2. Except for stipulated penalties resulting from Defendant's failure to comply with the milestone event set forth in paragraph IV.B. 12, any stipulated penalties incurred by ++EP++

Defendant for failure to achieve any other milestone date in the schedules set forth in paragraph IV.B shall be forgiven upon the Defendant's timely achievement of the next subsequent milestone date in that schedule, provided that the conditions of this paragraph are met.

Page 13

Such stipulated penalties shall be paid within thirty days of demand by EPA or the State by tendering a check in the appropriate sum to the agent of an escrow account to be established by the Defendant. If Defendant thereafter demonstrates compliance with the next subsequent milestone event set forth in the schedule, then all stipulated penalties paid and held in escrow for violation of the preceding missed milestone event shall be returned to the Defendant. If, however, the Defendant fails to comply with the next subsequent milestone event set forth in the schedule, then the escrow agent shall pay such amounts of the escrow account for that schedule, including all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph. Nothing contained herein shall relieve the Defendant of any obligation to pay any stipulated penalties hereunder that the Defendant fails to pay into the escrow account or which the escrow agent fails to pay to the United States and the State.

E. In the event that Defendant claims that a Force Majeure event, as defined in paragraph XI of this Decree has occurred such that no stipulated penalty is due for a missed milestone date, Defendant shall pay the stipulated penalty into ++EP++

an escrow account and such payment shall be held by the escrow agent pending resolution of the Defendant's claim of Force Majeure pursuant to paragraphs XI and XII.

Page 14

If it is determined that no stipulated penalty is due, then all stipulated penalties paid and held in escrow for the violation of the milestone dates at issue shall be returned to the Defendant promptly. If, however, it is determined that the stipulated penalty is due because the delay was not caused by a Force Majeure event, then the escrow agent shall pay such amounts of the principal and interest that are not entitled to further escrow pursuant to subparagraph D, herein, and all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph.

F. In addition to the stipulated penalties set forth above and the fees and other statutory assessments established by the Ban Act: (1) the civil penalties and other relief provided by the MPRSA at 33 U.S.C. Section 1415 for violations of the Act for which stipulated penalties are not provided for herein, for violations of regulations issued thereunder, for violations of permits issued thereunder, and for violations of this Decree for which stipulated penalties are not provided for herein, shall apply and remain in effect; and (2) the civil penalties and civil administrative penalties and other relief provided by the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for violations of the Acts, for violations of regulations ++EP++

promulgated pursuant thereto, and for violations of permits issue pursuant thereto, for which stipulated penalties are not provided for herein, shall apply and remain in effect.

Page 15

Notwithstanding any other provision of this Decree, New Jersey specifically reserves the right to seek injunctive relief and the maximum penalties pursuant to the New Jersey Water Pollution Control Act, including the New Jersey Ban Act for failure to cease ocean dumping of sewage sludge by March 17, 1991.

G. In the event of failure to pay stipulated penalties, as set out above, this matter may be referred to the United States Attorney and the State Attorney General for collection. Defendant shall be liable for plaintiffs' post-demand expenses, including attorney's fees, in such collection action.

VIII. STATUTORY ASSESSMENTS AND ESCROW REQUIREMENTS

A. In satisfaction of Defendant's obligations under 33 U.S.C. 1414b(b) (1) and 1414b(d) (1), the Defendant shall pay the amounts set forth herein for each day for the sewage sludge it disposes of in the ocean. Such payments are separate and apart from any penalties the Defendant may be liable for under paragraph VII. The quantity of dry tons shall be based upon the monthly average of percent solids for the sludge transported for the purpose of ocean disposal or disposed of in the ocean. Penalties for disposing of sewage sludge or transporting sewage sludge for the purpose of disposing of it in the ocean shall be calculated for any such disposal after December 31, 1991, as set ++EP++ out in Section 1414(b)(1) of the MPRSA.

Page 16

Such penalties are mandatory and independent of any civil penalties assessed or collected pursuant to Section 105 of the MPRSA and of any stipulated penalties assessed or collected pursuant to this Decree.

For the purpose of determining the applicable per-dry-ton fee or penalty, the date and time of initiation of transportation for the purpose of ocean disposal, to be reported as the time of loading sludge onto a barge (as required by condition 30.b. of the draft final permit), shall be used.

B. Payments of amounts assessed under paragraph VIII shall be made no later than on a quarterly basis, on the last day of the month following the end of a calendar quarter, if necessary should previous cumulative expenditures from the trust account described in C, below, be less than amounts due. The first payment, for sewage sludge dumped or for dumping initiated during the calendar quarter ending September 30, 1989 shall be made by October 31, 1989. For the purpose of determining the calendar quarter in which sludge was dumped, the date and time of initiation of transportation for the purpose of ocean disposal as the time of loading of sludge onto a barge (to be reported as required by condition 30.b. of the draft final permit) shall be used.

C. Prior to any ocean dumping of sewage sludge after August 14, 1989, the Defendant shall establish and maintain a trust account, as approved by EPA, pursuant to 33 U.S.C. 1414b(e) in the form attached to this Decree for the payment and use of ++EP++

that portion of the statutory assessments and penalties established by the Ban Act that are to be deposited in this trust account.

Page 17

Nothing herein is intended to preclude defendants from utilizing funds raised for facilities to enable them to cease ocean disposal of sewage sludge to satisfy their escrow obligations under this Decree.

D. Defendant shall pay fees and penalties in accordance with 33 U. S.C. Sub-Section 1414b(b) (2) (c) and 1414b(d) (2) (c) (i) into the Clean Oceans Fund established under 33 U.S.C. 1414b(c) (5) and the Water Pollution Control Revolving Fund established under Title VI of the Federal Water Pollution Control Act. In the event that the State has not established a Clean Oceans Fund or water pollution control revolving fund by February 28, 1990, fees and penalties required to be paid to the Clean Oceans Fund or revolving fund by Defendant shall be paid to EPA pursuant to 33 U.S.C. 1414b(b) (5).

E. In satisfaction of Defendant's obligations under 33 U.S.C. Sub-Section 1414b(b) (2) and 1414b(b) (2), the following amounts shall be paid by Defendant as set forth below to the following recipients for each dry ton of sewage sludge dumped in the ocean:

Payments Per Dry Ton Dumped

Recipients

State Water

Year in Clean Pollution Which Sludge Trust Oceans Control Re- Was Dumped EPA Account Fund/1/ volving Fund/1/ 1989 $15.00 $85.00 -- -- 1990 15.00 127.50 $3.75 $3.75 1991 15.00 170.00 7.50 7.50

((/1/ If established; if not established, to EPA pursuant to paragraph VIII.D.)) ++EP++

Page 18

After December 31, 1991, payment and distribution of penalties shall be computed and paid in accordance with 33 U.S.C. 1414b(d) (2).

F. Amounts paid to EPA under paragraph VIII.E shall be paid by a check made payable to the "Treasurer of the United States," and delivered by certified mail, return receipt requested, to EPA. Statutory assessments paid to the Clean Oceans Fund, state water pollution control revolving fund, or State shall be paid by a check made payable to the Treasurer, State of New Jersey, and delivered by certified mail, return receipt requested, to the State. Amounts paid into the trust account shall be paid by a check made payable to the trustee for said account. Whenever any payment is due under this Decree, if such payment is not received on or before the day in which payment is to be made pursuant to paragraph VIII.B., interest on the amount due will be assessed without further demand against Defendant at the annual rate established by the Secretary of the Treasury pursuant to 31 U.S.C. Section 3717, on the overdue amount from the day on which it was due through the date of payment. Failure to pay the amounts in full according to the above provisions will result in referral of this matter to the United States Attorney and the State Attorney General for collection. Interest on late payments shall be paid to EPA for untimely payments to EPA or the Defendant's trust account and to the State for untimely payments to it or to its revolving fund or Clean Oceans Fund. Interest on ++EP++

late payments shall be deposited in the U.S. Treasury or State Treasury as appropriate as general funds.

Page 19

Defendant shall be liable for Plaintiffs' necessary and reasonable expenses, including attorneys' fees, in such collection action.

G. In the event of Defendant's failure to make full payment to the trust account in accordance with paragraph VIII of this Decree within thirty days of the date on which it was due or Defendant's failure to use amounts withdrawn or received from the account in accordance with 33 U.S.C. 1414b(e) and this Decree, EPA shall provide notice to the Defendant and an opportunity for informal dispute resolution. If, thereafter, EPA finds that such a failure has occurred, it may direct the trustee of the trust account to pay the balance of the amounts in the trust account to the State for use in accordance with 33 U.S.C. 1414b(e) (2) (C). Pending final resolution of any district court challenge, the trustee shall continue to hold the funds in the trust account.

H. Amounts paid to the trust account, the State, the Clean Oceans Fund, or the state water pollution control revolving fund shall be used subject to the restrictions of 33 U.S.C. Sub-Section 1414b(c) (5), (e) and (f). The Defendant shall conduct audits on an annual basis to establish that such statutory assessments and penalties were properly deposited and paid out. The Defendant shall utilize the services of an auditor to conduct separate audits, on an annual basis of Defendant's expenditures from the trust account and from funds provided to it from the Clean Oceans Fund, to demonstrate compliance with 33 U.S.C. ++EP++ 1414b(c)(5) and (e).

Page 20

Costs incurred by the Defendant pursuant to this Decree and paid from the trust account and from funds provided to Defendant from the Clean Oceans Fund shall be necessary and reasonable, and allocable to the projects allowed by 33 U.S.C. 1414b(c)(5) and (e). The Defendant may look to the applicable cost principles of OMB Circular A-87 (46 Federal Register 9548 (1981)) for guidance in determining allowable costs. Such audit reports required of the Defendant shall be submitted to EPA and the State within 90 days after the end of each calendar year.

I. The Defendant shall submit to the EPA and the State, a scope of work for each project for which it expects to seek to withdraw funds from the trust account in the following six-month period. The first report shall be due by August 30, 1989 and shall cover the period from August 15, 1989 through December 31, 1989. Subsequent submissions shall be due 60 days prior to commencement of the next six-month period (e.g., October 30, 1989, for the period of January 1 through June 30, 1990). Each scope of work will consist of a description of the major activities to be funded in each project, the required level of funding for each such activity and a cumulative six-month payment schedule based upon projected costs to be incurred.

J. EPA will approve or disapprove the projected work and estimated costs for the major activities for the following six month period and will notify the trustee of the trust account and the State of EPA's approval or disapproval of the projected ++EP++

work and estimated cost and will provide the trustee with a list of the approved activities, funding levels and associated payment schedule.

Page 21

If EPA fails to act on the Defendant's proposed scope of work and payment schedule within 60 days of its receipt, the Defendant may submit the scope of work and payment schedule to the Trustee together with a certification that EPA has failed to disapprove use of the trust account as required in 33 U.S.C. 1414b(e)(2)(A).

K. The Defendant may request funds from the Trustee for immediate cash disbursements based upon the approved payment schedule costs incurred. The Trustee will authorize the expenditure of funds in accordance with the scope of work and approved payment schedule. If the Defendant anticipates that funding for the authorized activities will exceed the amounts in the approved scope of work, the Defendant may seek approval for the release from its trust account from EPA for such additional needs.

L. This Decree specifies only the minimum amounts that must be placed in the trust account. Nothing in this Decree is intended to prevent the Defendant from depositing into the trust account, as a matter of administrative convenience, sums greater than those specified herein, or to preclude them from depositing additional amounts for any lawful purpose, provided that the minimum amounts required to be in such account are at all times present. Notwithstanding the fact that the Defendant may have deposited in the Trust Fund sums greater than the statutorily ++EP++

prescribed amounts, for its convenience or for any other good reason, the Plaintiffs' interest in the Trust Fund is limited to the amounts established by the Ban Act and as set out herein.

Page 22 IX. NOTIFICATIONS

A. Except as specified otherwise, when written notification to or communication with the United States or the State is required by the terms of this Decree or when payment of a statutory assessment or penalty is to be made, it shall be sent by certified mail, return receipt requested, and addressed as follows:

As to the United States of America:

United States Attorney's Office

Federal Building

970 Broade Street

Newark, New Jersey 07102

United States Department of Justice

Land and Natural Resources Division

10th & Constitution Ave., N.W.

Washington, D.C. 20530

Attn: Chief, Environmental Enforcement Section

As to the Environmental Protection Agency:

U.S. Environmental Protection Agency

Region II

Office of Regional Counsel

26 Federal Plaza

New York, New York 10278

U.S. Environmental Protection Agency

Financial Management Branch, Policy and

Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278 ++EP++

Page 23

Water Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

As to State:

Chief, Environmental Protection Section

Division of Law

CN 112

Hughes Justice Complex

Trenton, New Jersey 08625

Director

Division of Water Resources

Department of Environmental Protection

CN 029

401 E. State Street

Trenton, New Jersey 08625

As to Defendant:

Carmine T. Perrapato

Executive Director

Passaic Valley Sewerage Commissioners

600 Wilson Avenue

Newark, New Jersey 07105

Notifications to or communications with the United States, EPA or the State shall be deemed submitted on the date they are telefaxed or postmarked and sent by certified mail, return receipt requested, whichever occurs later.

B. Reports required to be submitted pursuant to paragraph V shall be signed by the responsible official of the Defendant designated pursuant to paragraph VI and shall include a certification under penalty of law that the responsible official is in a position to know the facts contained in the report, has made sufficient inquiry to determine the accuracy of the ++EP++

information contained in the submission and that he or she certifies that to the best of his knowledge the information contained in or accompanying the submission is true, accurate and complete.

Page 24

(See 40 C.F.R. 122.22 for form of certification.)

X. MODIFICATIONS

Except as provided for herein, there shall be no modification of this Decree without written approval of all of the parties to this Decree, subject to the approval of the Court, or Order of the Court. Nothing herein shall be construed to limit any party's rights pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.

XI. FORCE MAJEURE

A. A Force Majeure event is any event that is beyond the control and without the fault of the Defendants and/or its contractors and which causes a delay in implementing any of the measures required by this Decree. Such Force Majeure events may be occasioned by, among other things, Act of God; contractor or supplier default; failure of a federal or state regulatory agency to issue any necessary permit or approval in a timely fashion (where, in accordance with all applicable laws and regulations, the Defendant timely submitted an application, has done all it can do to ensure that such application is complete, has provided all necessary supporting information and is otherwise entitled to such permit or approval); inability to secure responsible bids; or a judicial injunction (where such injunction is issued by a court of competent jurisdiction directed against work actually ++EP++ being performed in furtherance of construction of sludge treatment and disposal facilities and provided that the Defendant has exercised due diligence and best efforts in seeking removal to this court and in resisting such injunction, including appeals, and further provided that the Defendant has acted in accordance with applicable statutes and regulations).

Page 25

If a Force Majeure event occurs, Defendant shall be entitled to a modification of the schedule milestones to the extent that such event was beyond the control of the Defendant. The Defendant bears the burden of establishing that the event was beyond its control and of demonstrating the amount of delay that is necessary because of the Force Majeure event. As a condition precedent to obtaining any relief under this provision, Defendant shall notify the Court and all the parties in writing that a Force Majeure event has occurred, no later than 90 days after the date Defendant knew or should have known of the occurrence of any Force Majeure event.

B. The notice to EPA and the State, required above, shall include, to the extent such information is available at the time of such notification:

1. The anticipated length of time of the delay;

2. The cause of the Force Majeure event;

3. Measures taken to minimize the delay including a time table for implementation of any such measures;

4. Proposed date by which subsequent schedule milestones will be achieved; and ++EP++

Page 26

5. Activities that can be taken to minimize the impact of the Force Majeure event on the overall schedule.

C. If all the parties agree that a failure to comply with any requirement of this Decree, including a schedule milestone in paragraph IV, was caused by a force majeure event, the parties shall seek an amendment to this Decree containing such proposed modifications, including revised schedule milestones as may be necessary, and no stipulated penalties shall be incurred. If the parties agree that an extension is necessary, the schedule of milestone dates under paragraph IV shall be extended for the period of time caused by the Force Majeure event. However, it is the State's intention to oppose any extension of the disposal of sludge beyond March 16, 1991 because it is the State's position that it has no authority to extend the statutorily imposed deadline. In the event that revision of the schedule milestones is necessary, the Defendant agrees to make every effort to ensure that the milestone events set forth in paragraph IV are not extended.

D. If the parties cannot agree that a failure to achieve milestone dates was beyond the control of the Defendant, the Defendant may, within 90 days following the missed milestone event, apply to the Court for a determination as to whether all or part of the delay was excusable due to a Force Majeure event.

E. If, for any reason, the Defendant fails to achieve any schedule milestone established in paragraph IV and the parties cannot agree that the remainder of the schedule ++EP++

milestones will be affected, or how they will be affected, then the Defendant may, within 90 days following the missed schedule milestone, petition the Court for a determination concerning whether the failure to actieve the milestone date(s) requires a revision of all or part of the remainder of the schedule milestones as established in paragraph IV.

Page 27

Whenever a milestone is missed, the Defendant shall exercise its best efforts to recoup all lost time, including, where appropriate, the payment of additional costs for overtime, double shifts or additional contractors or consultants.

XII. DISPUTE RESOLUTION

A. Any dispute between two or more parties to this Decree which arises under this Decree shall in the first instance be the subject of informal negotiations between the parties to the dispute for a period of up to twenty (20) days from the time notice of the dispute is given. Both the EPA and the State shall be considered parties to any dispute. The period for negotiations may be extended by agreement of the parties to the dispute.

B. In the event that the parties cannot resolve the dispute by informal negotiations under the preceding paragraph, then the position advanced by EPA and the State, after consultation, will be considered binding unless, within fifteen (15) days after the end of the informal negotiations period, the Defendant files a petition with this Court setting forth the matter in dispute, the efforts of the parties to resolve it, and ++EP++

the relief requested which may include a request that a master be appointed by the court.

Page 28

Any party to the dispute may present a disputed matter to the Court before the end of the negotiations period if the matter concerns stipulated penalties or otherwise requires early resolution. The dispute resolution procedures of this paragraph shall be the exclusive mechanism to resolve disputes arising under this Decree and in connection with the draft final permit incorporated herein.

If, for any reason, the Defendant fails to achieve any milestone date(s) established in paragraph IV and the parties cannot agree that the remainder of the schedule will be affected, or how it will be affected, and the Defendant petitions the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule for such project as established in this Decree, in the interim the Defendant shall exercise its best efforts to recoup all lost time. In any proceeding convened under this paragraph, the Defendant shall bear the burden of proof to demonstrate that a change in the schedule is required. The Court shall determine whether and to what extent future milestones will be affected and, if the Court so finds, shall direct that appropriate schedules be submitted. Prior to the recommendation of any schedule further extending the end dates for completion of the tasks enumerated in paragraph IV, the Defendant shall demonstrate to the Court that alternative methods ++EP++

to recoup time lost in the delays have been explored and that no practicable means exist to do so.

Page 29

C. The filing of a petition asking the Court to resolve a dispute shall not of itself extend or postpone any obligation of the Defendant under this Decree, provided further that nothing herein shall prevent an affected party from applying to the Court, upon notice to all parties, for a stay of relief authorized or directed by this Decree.

D. In proceedings on any dispute regarding a delay in performance or other noncompliance, the Defendant shall have the burdens of proving (1) that the delay or other noncompliance is or was caused by circumstances beyond the Defendant's control and without fault of the Defendant, and (2) that the amount of any additional time requested is necessary to compensate for such circumstances.

XIII. COMPLIANCE WITH OTHER LAWS

A. Except as otherwise provided in this Decree, the Defendant shall not be relieved of its responsibility to comply with any other Federal, State, or local law or regulation.

B. This Decree constitutes an agreement pursuant to the Ban Act, 33 U.S.C. 1414b(c)(3) and satisfies the requirements of 33 U.S.C. 1414b( a)(1)(A)(i). A violation of this Decree is a violation of the MPRSA. The United States and the State do not, by their entry into this Decree, warrant or aver in any manner that the Defendant's complete compliance with this Decree will result in compliance with the Act, the State Ban Act or any other ++EP++ Federal or State law.

Page 30

Notwithstanding the EPA's and the State's review of any plans formulated by the Defendant pursuant to this Decree, Defendant is solely responsible for compliance with all Federal and State laws and regulations. The United States and State do not waive any rights or remedies available to them for any violation by Defendant of Federal or State laws or regulations occurring after termination of this Decree. This Decree in no way affects or relieves the Defendant of its responsibility to comply with any Federal or State law or regulation. Nothing in the Decree shall be construed to limit the Plaintiffs' right to seek contempt sanctions for violations of this Decree or to seek penalties or injunctive relief under any Federal or State statute or regulation for violations for which stipulated penalties are not provided for by this Decree.

C. The Defendant, EPA and the State will take all possible steps to expedite, to the extent practicable, submission and review, as appropriate, of any permits, applications or approvals needed for completion of the interim measures and long-term alternative system(s), setforth herein.

XIV. RETENTION OF JURISDICTION

This Court shall retain jurisdiction to enforce the terms and conditions of this Decree and to resolve disputes arising hereunder as may be necessary or appropriate for its implementation. ++EP++

Page 31 XV. TERMINATION

This Decree shall terminate when the Defendant has complied with all applicable requirements of this Decree and the United States and the State have so certified.

The parties consent to entry of this Decree without further notice.

Respectfully submitted,

/s/ Donald Carr

DONALD A. CARR

Acting Assistant Attorney General

Land and Natural Resources

Division

United States Department of

Justice

/s/ Bruce C. Buckheit

BRUCE C. BUCKHEIT

Senior Counsel

Environmental Enforcement Section

Land and Natural Resources

Division

United States Department of

Justice

Washington, D.C. 20530

SAMUEL A. ALITO, JR.

United States Attorney

for the District of New Jersey

By: /s/ Vincent Gentile

VINCENT GENTILE

Assistant United States Attorney

Federal Building (Rm. 502)

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 32

FOR THE ENVIRONMENTAL PROTECTION

AGENCY

/s/ William J. Muszynski

WILLIAM J. MUSZYNSKI

Acting Regional Administrator

U.S. Environmental Protection

Agency

Region II

/s/

EDWARD E. REICH

Acting Assistant Administrator

for Enforcement and

Compliance Monitoring

/s/ Charles E. Hoffmann

CHARLES E. HOFFMANN

Assistant Regional Counsel

Environmental Protection Agency

26 Federal Plaza

New York, New York 10278 ++EP++

Page 33

FOR THE STATE

/s/ Christopher J. Daggett

CHRISTOPHER J. DAGGETT

Commissioner, New Jersey

Department of Environmental

Protection

/s/ Anthony J. Parrillo

ANTHONY J. PARRILLO

Executive Assistant Attorney

General of the State

of New Jersey

/s/ Robert G. Hoyt

ROBERT G. HOYT

Deputy Attorney General

State of New Jersey

New Jersey Division of Law

Hughes Justice Complex

Trenton, New Jersey 08625 ++EP++

Page 34

FOR THE PASSAIC VALLEY SEWERAGE

COMMISSIONERS

/s/ Charles A. Lagos

CHARLES A. LAGOS

Chairman

Passaic Valley Sewerage

Commissioners

Attest:

/s/ Norman E. Darmstatter

NORMAN E. DARMSTATTER

Clerk

Passaic Valley Sewerage

Commissioners ++EP++

Page 35

SO ORDERED:

DATE

UNITED STATES DISTRICT JUDGE

++EP++

Page ATT-A-1 ATTACHMENT A DRAFT FINAL MARINE PROTECTION, RESEARCH, & SANCTUARIES ACT OCEAN DUMPING PERMIT

PERMIT NO. AND TYPE: II-NJ-003-SPECIAL

EFFECTIVE DATE: AUGUST 14, 1989

EXPIRATION DATE: MARCH 17, 1991

PERMITTEE:

Mr. Carmine T. Perrapato

Executive Director

Passaic Valley Sewerage Commissioners

600 Wilson Avenue

Newark, New Jersey 07105

WASTE GENERATOR(S): Same as above

WASTE GENERATED AT: Same as above.

PORT OF DEPARTURE: Port of New York and New Jersey

WASTE TRANSPORTERS: 106 Mile Transport Associates

TOWING CONVEYOR(S):

Weeks Stevedoring Co., Inc.

General Marine Transport Corp.

Moran Towing Transportation Co., Inc.

Turecamo Coastal and Harbor Towing Corp.

Eckloff Marine Corp.

Reinauar Transportation Co.

Bouchard Transportation Co., Inc.

or any other transporter or towing conveyor contracted by the permittee and authorized by the EPA to perform such services.

This permit authorizes the transportation and dumping into ocean waters of certain materials pursuant to the Marine Protection, Research, and Sanctuaries Act of 1972, as amended 33 U.S.C. 1401-1444, (hereinafter referred to as "the Act"), regulations promulgated thereunder, and the terms and conditions set forth below. ++EP++

Page ATT-A-2

Conditions:

1. All transportation and dumping authorized herein shall at all times be undertaken in a manner consistent with the terms and conditions of this permit. The Permittee(s) named above shall hereafter be referred to as the permittee(s). The permittee, waste transporter, and towing conveyor designated above shall be liable for compliance with such terms and conditions. The liability of each is set forth in Condition No. 33. Compliance by any permittee, waste transporter, or towing conveyor with one or more but less than all of the conditions with which the permittee, waste transporter, or towing conveyor must comply shall not constitute a ground or grounds of defense in any proceeding against that permittee, waste transporter, or towing conveyor for violation of the provisions of this permit.

2. Any person who violates any provision of the Act, the Regulations issued thereunder, or any term or condition of this permit shall be liable for a civil penalty of not more than $ 50,000 per day for each violation. Additionally, any knowing violation of the Act, Regulations or permit may result in a criminal action being brought with penalties of not more than $ 50,000 or one year in prison, or both.

3. a. Transportation to and dumping of waste, or any residue of said waste that remains in the vessel after the dumping procedures described in Condition No. 24, at any location other than that authorized by this permit shall constitute a violation of the Act and the terms and conditions of this permit.

b. Transportation and dumping of any material or constituent not identified in this permit, or in excess of that identified in this permit, or in excess of the criteria identified in the Regulations, unless specifically authorized by a written modification hereto, shall constitute a violation of the Act and the terms and conditions of this permit.

4. Nothing contained herein shall be deemed to authorize, in any way, the transportation from the United States for the purpose of dumping into ocean waters, the territorial seas, or into the contiguous zone, of the following prohibited material:

a. High-level radioactive wastes.

b. Materials, in whatever form, produced for radiological, chemical, or biological warfare.

c. Persistent inert synthetic, or natural materials which may float or remain in suspension in the ocean. ++EP++

Page ATT-A-3W

d. Digester cleanout - defined as any material that is removed from a sludge digester through the cleaning of said digester.

e. Storage tank cleanout - defined as any material that is removed from a storage tank through the cleaning of said storage tank.

f. Medical wastes as defined in Section 3 (k) of the Act.

5. Any person who dumps medical wastes shall be liable for a civil penalty of not more than $125,000 per day for each violation. Additionally, anyone who knowingly dumps medical wastes may be subject to criminal action being brought with penalties of not more than $250,000 or not more than 5 years in prison, or both, in accordance with Section 105 of the Act.

6. After notice and opportunity for a hearing, this permit may be modified or revoked, in whole or in part, during its term for cause including, but not limited to, the following:

a. Violation of any term or condition of the permit.

b. Misrepresentation, inaccuracy, or failure by the permittee or waste transporter to disclose all relevant facts in the permit application.

c. A change in any condition or material fact upon which this permit is based that requires either a temporary or permanent addition to, reduction, or elimination of the authorized transportation or dumping including, but not limited to, changes in conditions at the designated dump site and newly discovered scientific data relative to the issuing of this permit.

d. Failure to keep records, engage in monitoring and reporting activities, or notify appropriate officials in a timely manner of the transportation and dumping activities as specified in any condition of this permit.

7. This permit shall be subject to suspension by the EPA Regional Administrator or his delegate if he determines that the authorized dumping has resulted, or is resulting, in imminent or substantial harm to human health or welfare or the marine environment. ++EP++

ATT-A-4N

8. The performance of any transportation or dumping authorized by this permit, by any person, firm, or corporation other than the named permittee shall not relieve the permittee from full responsibility for compliance herewith, nor shall the existence of any contractual or other agreement with such person, firm, or corporation operate to relieve either party from responsibility for compliance with this permit or the Act or both.

9. The authority conferred by this permit may, at the discretion of the EPA Regional Administrator or his delegate, be transferred to a waste transporter, or towing conveyor other than those named herein, provided that a request for such a transfer be made, in writing, by the permittee at least thirty (30) days prior to the requested transfer date.

10. If material which is regulated by this permit is discharged due to an accident or an emergency to safeguard life at sea, in locations or in a manner not in accordance with the terms or conditions of this permit, the permittee shall make a full written report within ten (10) days to the Regional Administrator detailing the conditions of this accident or emergency and the actions taken. The owner or operator of the vessel shall notify EPA and the Coast Guard of the incident by radio, telephone, or telegraph immediately but not later than one (1) hour after occurrence of said incident.

Within sixty (60) days of issuance of this permit, the permittee shall submit to EPA for approval a catastrophic spill contingency plan detailing steps to be taken for the prevention of and mitigation of environmental impacts from a catastrophic spill.

11. Unless otherwise provided for herein, all terms used in this permit shall have the meanings assigned to them by the Act or the Regulations issued thereunder.

12. The issuance of this permit does not convey any property rights in either real or personal property, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of rights, nor any infringement of federal, state, or local laws or regulations, nor does it obviate the necessity of obtaining State or local assent required by applicable law for the activity authorized.

13. This permit does not authorize or approve the construction of any onshore physical structures or facilities or the undertaking of any work in any navigable water.

14. Each waste transporter and towing conveyor shall at all times maintain in good working order and operate as efficiently and as safely as possible, all facilities, including vessels, used by the waste transporter or towing conveyor in achieving ++EP++ compliance with the terms and conditions of this permit.

Page ATT-A-5

All vessels used in achieving such compliance shall be certified as meeting U.S. Coast Guard standards for seaworthiness and safety.

15. This permit, or a true copy thereof, shall be placed in a conspicuous place in each scow, boat, barge, towed vessel, self-propelled vessel or tugboat that will be used to transport, dump, or transfer the waste described in this permit.

16. Every scow, boat, barge, towed vessel, self-propelled vessel or tugboat, engaged in the transportation of wastes described in this permit shall have its name and number painted in letters and numbers at least fourteen (14) inches high on both sides of the scow, boat, barge, towed vessel, self-propelled vessel or tugboat. The name and number shall be distinctly legible at all times, and no scow, boat, barge, towed vessel, self-propelled vessel or tugboat not so marked shall be used to transport, dump, or transfer such material.

17. The permittee, waste transporter(s), and towing conveyor(s) shall allow the EPA Regional Administrator, the Commander of the U.S. Coast Guard Third District, appropriate State representatives and/or their authorized representatives including authorized contractors, the following:

a. To enter into, upon, or through the permittee's or waste transporter's premises, vessels, or other premises or vessels under the control of the permittee or waste transporter where, or in which, a source of material to be dumped is located or in which any records required to be kept under the terms and conditions of this permit or the Act. The vessels include any towed vessel, tugboat, barge, scow, boat, or self-propelled vessel.

b. To have access to and copy any records required to be kept under the terms and conditions of this permit or the Act.

c. To inspect any monitoring equipment or monitoring method required in this permit.

d. To sample or require that a sample be drawn of any of the materials discharged or to be discharged.

e. To inspect any dumping and navigation equipment installed on board any towing vessel, tugboat, barge, or self-propelled vessel utilized in ocean dumping activities authorized under this permit. ++EP++

Page ATT-A-6

18. a. As part of the Ocean Dumping Surveillance System (ODSS) the waste transporter shall allow the Coast Guard to install on each towed vessel or self-propelled vessel departing port for ocean dumping activities under this permit, a remote unit (black box), hull transducers, hull inserts, antennas and all necessary cable and connections and any other equipment or devices used to facilitate the operation of the ODSS. The waste transporter(s) is required to coordinate installation of the ODSS with the Coast Guard and is responsible for arranging dry docking of the vessels.

The waste transporter(s) is also responsible for:

i. supplying and mounting the brackets for the cables and antennas.

ii. making all necessary waterproof bulkhead holes for cables.

iii. mounting the hull inserts in the hull into which the hull transducers are installed.

iv. routing the cable from the transducers and antenna to the remote unit.

v. providing an AC power source (Circuit Panel) to the remote unit.

b. The ODSS shall be installed and tested no later than 30 days before any dumping may occur. The permittee shall not use nor the waste transporter allow a towed vessel or self-propelled vessel to depart on a dumping mission without such equipment installed and tested unless a written authorization from the Regional Administrator or his delegate is first obtained.

c. The waste transporter shall maintain continuous AC electrical power to the remote units and dump sensors at all times, whether at sea or in port.

d. The waste transporter and towing conveyor shall not alter or remove the remote unit, hull transducers, connections, antennas or any other part of the ODSS, nor shall the waste transporter or towing conveyor in anyway interfere with the operation of said system.

19. Description of Waste - During the term of this permit, the type and quantity of waste permitted for transportation for the purpose of ocean dumping shall be in accordance with the following: ++EP++

Page ATT-A-7

Type of Waste - Digested or otherwise stabilized municipal sewage sludge.

Permittee Dry Tons Annually of Wet Tons Annually of Waste Waste PVSC 96,016 1,400,000

No amount of waste in excess of either the wet tonnage or dry tonnage shown above shall be ocean dumped.

In the event of unavoidable breakdown of Passaic Valley Sewerage Commissioners sludge stabilization process (Zimpro), unstabilized sewage sludge may be disposed under the terms and conditions of this permit. PVSC shall utilize all necessary preventive maintenance procedures to ensure that its sludge stabilization process attains maximum utilization and shall submit to EPA monthly status reports (within 15 calendar days of the end of each month) on the operation of said process.

20. Disposal Site - Transportation for the purpose of ocean dumping shall terminate at, and waste disposal shall be confined to, the Deepwater Municipal Sludge Dump Site (DMSDS). The area of the DMSDS is described below and on each navigational overlay.

Latitude: 38 degrees 40'00"N to 39 degrees 00'00" N

Longitude: 72 degrees 00'00"W to 72 degrees 05'00" W

21. Authorized Transport - The waste transporter shall use only the following towed vessel(s)/self-propelled vessel(s) for dumping of wastes authorized under this permit unless additional vessel(s) are authorized by EPA in writing after receipt of a written request by the waste transporter. ++EP++

Page ATT-A-8

106-Mile Transport

Weeks 701/*/

Weeks 702/*/

Eileen/*/

Kimberly Ann/*/

Lisa/*/

Maria/*/

Morris J. Berman

Leo Frank/*/

Princess B

((/*/ These vessels can discharge at the interim discharge rates listed in Table 2, based upon the location and number of discharge ports, wake characterization, and dispersion characteristics.))

22. The master of the ocean dumping vessel (ie., tugboat or self-propelled vessel) shall submit an Ocean Dumping Notification Form (ODNF) which shall contain a navigational overlay of the dumping vessel's trackline during the dumping operation and all other information required on the ODNF (see Attachment No. 1). The navigational overlay shall clearly show the times and positions of the vessel at critical points (i.e., entry and exit from the dump site; beginning and end of dump, and points every two (2) hours along the discharge path). The overlay shall be signed and dated by the vessel master. The master of the vessel shall also be required to certify whether or not discharge requirements found in Condition No. 24 were met. The original ODNF along with the original Manifest form (s) (see Condition No. 27 b.) shall be forwarded within 72 hours after completion of the voyage to the EPA. Copies of the ODNF shall also be sent to the Coast Guard, waste transporter, and the permittee(s) whose waste was dumped, at the same time that the original is forwarded to the EPA.

23. The waste transporter shall install and utilize during the course of each nighttime dumping operation a spotlight, which shall be of sufficient intensity to illuminate the discharge immediately astern of the dumping vessel. The spotlight shall be sufficiently elevated so as to give ample coverage to the wake of the vessel, while at the same time maintaining the direction of the light beam vertically into the water column. The spotlight shall be fixed firmly into position and shall be installed on the vessel so as not to interfere with or to be confused with any other required navigational lights.

24. Discharge Rates - Discharge rates for the sewage sludge are based on the dilution required to meet the limiting permissible concentration (LPC) at the 4 hour initial mixing period. The required dilution is based on the LC50 of the most sensitive marine species tested and an application factor of 0.01. Dilutions that will occur are proportional to vessel speed. The nomographs shown in Figures 1 and 2 will be used to determine the discharge rate of the sewage sludge.

Required dilutions and discharge rates for each permittee using the DMSDS are initially established as listed in Tables 1 and 2 and dependent upon vessel. ++EP++

Page ATT-A-9

TABLE 1. MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 Kn Discharge Rate (gal/min)

Required Authority Dilution 3kn 4kn 5kn PVSC 58,800 210 280 350 MCUA 4,740 4,359 5,812 7265 BCUA 6,450 2,684 3,579 4,473 LRSA 166,700 73 97 122 RVSA 11,360 1,276 1,701 2,127 JMEUC 5,950 3,024 4,032 5040 NYCDEP 6,290 2,784 3,712 4,640 NCDPW 10,870 1,347 1,796 2,245 WCDEF 10,990 1,329 1,772 2,215 Discharge Rate (gal/min) Authority 6kn 7kn 8kn 9kn 10kn PVSC 420 490 560 630 700 MCUA 8,719 10,171 11,624 13,078 14,530 BCUA 5,368 6,263 7,157 8,052 8,947 LRSA 145 170 195 218 243 RVSA 2,552 2,977 3,403 3,828 4,253 JMEUC 6,048 7,056 8,064 9,072 10,080 NYCDEP 5,568 6,496 7,424 8,352 9,280 NCDPW 2,694 3,143 3,592 4,041 4,490 WCDEF 2,658 3,101 3,544 3,987 4,430

TABLE 2. INTERIM MUNICIPAL SEWAGE SLUDGE DISCHARGE RATES FOR VESSELS AT SPEEDS OF 3 TO 10 kn

Discharge Rate (gal/min) Required Authority Dilution 3kn 4kn 5kn PVSC 58,800 420 560 700 MCUA 4,740 8,718 11,624 14,530 BCUA 6,450 5,368 7,157 8,947 LRSA 166,700 146 195 243 RVSA 11,360 2,552 3,402 4,253 JMEUC 5,950 6,048 8,064 10,080 NYCDEP 6,290 5,568 7,424 9,280 NCDPW 10,870 2,694 3,592 4,490 WCDEF 10,990 2,658 3,544 4,430 Discharge Rate (gal/min) Authority 6kn 7kn 8kn 9kn 10kn PVSC 840 980 1,120 1,260 1,400 MCUA 15,500 15,500 15,500 15,500 15,500 BCUA 10,736 12,525 14,315 15,500 15,500 LRSA 292 341 389 438 487 RVSA 5,104 5,955 6,805 7,656 8,507 JMEUC 12,096 14,112 15,500 15,500 15,500 NYCDEP 11,136 12,992 14,848 15,500 15,500 NCDPW 5,388 6,286 7,184 8,082 8,980 WCDEF 5,316 6,202 7,088 7,974 8,860

PVSC = Passaic Valley Sewerage Commissioners

MCUA = Middlesex County Utilities Authority

BCUA = Bergen County Utilities Authority

LRSA = Linden-Roselle Sewerage Authority

RVSA = Rahway Valley Sewerage Authority

JMEUC = Joint Meeting of Essex and Union Counties

NYCDEP = New York City Department of Environmental Protection

NCDPW = Nassau County department of Public Works

WCDEF = Westchester County Department of Environmental Facilities ++EP++

Page ATT-A-10

FIGURE 1. NOMOGRAPH FOR DISCHARGE RATES PICTURE/DIAGRAM/ ILLUSTRATION OMITTED ++EP++

Page ATT-A-11

FIGURE 2. NOMOGRAPH FOR INTERIM DISCHARGE RATES PICTURE/DIAGRAM/ ILLUSTRATION OMITTED ++EP++

Page ATT-A-12

Based upon EPA's evaluation of the sludge characterization data required to be submitted by the permittee under permit Condition No. 25, discharge rate revisions may be issued on a quarterly basis. For toxicity based LPCs, the test species with the lowest LC50 and an application factor of 0.01 will be used to determine the required dilution. Chemical compounds in the liquid phase of the sludge may also be evaluated for establishing the required dilutions.

EPA will permit certain vessels (See Condition No. 21) to utilize the interim discharge rates specified in Table 2 until August 14, 1990, provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurements of the wake-induced initial mixing (0-5 min.) under an EPA approved protocol by May 14, 1990 to confirm the dispersion characteristics inherent in the rates. Failure to submit such a report by May 14, 1990 shall preclude the use of the interim discharge rates specified in Table 2 beyond that date. Upon EPA's analysis and written acceptance of such field measurements, Figure 2 (or an appropriate adjustment) may continue to be used to determine the discharge rates for such vessels beyond August 14, 1990. Under no circumstances shall a maximum discharge rate of 15,500 gallons per minute be exceeded.

Permittees may combine sludges from different treatment plants or from different sewerage authorities into single vessel loads. The discharge rate for such a vessel is established by the most toxic sludge loaded into the vessel. However, if the permittee(s) demonstrates to EPA that vessel loads are homogeneously mixed, the discharge rate for such combined vessel loads may be based on a weighted-average required dilution for the sludges in such vessels upon written approval from EPA.

PVSC is required to submit to EPA a detailed report of the causes of the toxicity of their sludges (Toxic Trackdown) as well as a full analysis of steps that will be taken to reduce the toxicity of their sludge to the lowest extent possible (Toxicity Reduction Program). Such report shall be submitted within six months of permit issuance and shall provide an expedited toxicity reduction program with steps to be taken immediately and in three-month increments thereafter through the life of the permit.

Dumping Procedures

Sewage sludge shall be discharged within the DMSDS. Discharge shall occur while the dumping vessel is moving at a speed of not less than 3 knots over the ground along the appropriate discharge tracklines as shown in Figure 3. The first trackline, delineated by lanes A-B in Table 3, and as shown on Figure 3 shall be utilized by NYCDEP and NCDPW. The second trackline, delineated by lanes C-D in Table 3, and as shown on Figure 3 shall be utilized by the remaining permittees. Any vessel that can not ++EP++

Page ATT-A-13

Deepwater Municipal Sludge Dump Site PICTURE/DIAGRAM/ILLUSTRATION OMITTED

Figure 3. Discharge Track lines ++EP++ enter its own designated trackline because of traffic congestion within its trackline, may enter into the other designated trackline only under the following conditions:

Page ATT-A-14

1. The vessel can not enter its own designated trackline without violating the permit provisions on allowable vessel spacing.

2. There is no more than one vessel in the other trackline.

3. The vessel in no way inhibits the movement or progress of any other vessel inside the trackline or causes any other vessel to wait before entering the trackline.

4. The vessel shall at all times yield right-of-way to all other vessels in the trackline.

5. Should the vessel in any way or at any time inhibit the progress or movement of any other vessel, including but not limited to; causing another vessel to discharge at a slower vessel speed than it would have otherwise traveled at, or by causing another vessel to wait outside of its own designated trackline, then said vessel shall immediately cease discharging and shall exit the site as soon as possible.

The track of the dumping vessel during discharge shall be limited to within one-quarter nautical mile of either side of the discharge trackline. No discharge shall occur within one-half nautical mile of the DMSDS's boundaries.

TABLE 3. DESIGNATED DISCHARGE TRACKLINES

HEADING START END LANE T LAT. (N) LONG. (W) LAT. (N) LONG. (W) A 180* 38* 59' 72* 04' 38* 41' 72* 04' B 000* 38* 41' 72* 03' 38* 58' 72* 03' C 180* 38* 58' 72* 02' 38* 41' 72* 02' D 000* 38* 41' 72* 01' 38* 59' 72* 01'

The turns at the end of each trackline shall not begin until the dumping vessel has reached the end of the trackline. During the turn, the track of the dumping vessel shall not extend more than one-half mile beyond the end of the trackline.

After dumping is completed and the vessel discharge valves are secured, the vessels may exit the dumpsite using any convenient route. The exiting vessel must yield right of way to all vessels dumping or about to enter the dumpsite. ++EP++

Page ATT-A-15

Vessels which are discharging must maintain a minimum 2 hour separation between them. They may not follow any discharge trackline any sooner than 2 hours after the trackline was made.

Allowable Discharge Rates during High Energy Conditions

Permittees will be allowed to discharge at five times their normal rates while sustained wind conditions within the designated site are at or above "Beaufort Force 5", as listed in Appendix No. 7, provided that in no case shall discharge rates exceed 15,500 gallons per minute.

In order to utilize this provision the towing vessel or self propelled vessel shall have installed and maintain appropriate wind speed instrumentation. A description of such instrumentation shall be submitted by the permittee to EPA within 30 days of permit issuance.

EPA will permit all vessels to utilize the allowable discharge rates during high energy conditions until August 14, 1990 provided the permittees conduct and submit to EPA for approval (in report format), sufficient field measurements of dispersion at "Beaufort Force 5" wind conditions under an EPA approved protocol by May 14, 1990 to confirm such increased dispersion. Failure to submit such a report by May 14, 1990 shall preclude the use of the above-mentioned five-fold increase in discharge rates beyond that date. Upon EPA's analysis and written acceptance of such field measurements, the five-fold increase (or an appropriate adjustment) may continue to be used beyond August 14, 1990.

25. MONITORING REQUIREMENTS - Several monitoring activities, as prescribed by the EPA Monitoring Plan for the Deepwater Municipal Sludge Dump Site are required of the permittee. Monitoring activities will be conducted under Tier 1, Tier 2, and Tier 3 of the disposal site monitoring plan. Sewage sludge characterization data required under Tier 1 of the monitoring plan shall be submitted to EPA on a regular basis by each permittee. Monitoring activities required under Tier 2 and Tier 3 shall be implemented by the permittee. Monitoring activities are described in the EPA document "Permittee Monitoring Requirements: 106-Mile Deepwater Municipal Sludge Disposal Monitoring Program".

Under Tier 1 of the monitoring plan, the permittee is required to submit sewage sludge characterization data. Tier 2 monitoring plan activities will include measurement of upper ocean currents and water column structure to characterize sludge dispersion at and near the disposal site. Activities under Tier 3 will include monitoring of water mass movement from the disposal site for evaluation of large scale water movement.

Within 45 days of permit issuance, the permittee shall submit to ++EP++

EPA a written quality assurance plan for implementation of Tier 2 and 3 activities.

Page ATT-A-16

The permittee shall initiate Tier 2 and 3 activities within two and three months respectively of EPA approval of said quality assurance plan.

TIER 1 MONITORING REQUIREMENTS

Sludge characterization

Sample collection: For all characterization studies, representative sludge samples will be collected during vessel loading. Samples will be collected from a point on the discharge side of the pump delivering sludge from a digester or holding tank to a vessel being loaded for disposal at the disposal site. A flow-weighted composite sample, collected during the entire loading procedure, is required.

Permittees using an individual vessel to dispose of sludge from more than one treatment plant are required to characterize a sample composited from samples drawn from each compartment of the barge. Analysis of individual compartments shall be required to demonstrate the homogeneity of the sludge in the vessel, if the permittee chooses to request EPA approval to calculate disposal rates on the weighted-average required dilution of sludge entering the vessel.

Sample collection frequency: Samples shall be collected and analyzed at the following frequency:

Monthly - Parameters required to evaluate and set discharge rates.

1. 96-hour acute bioassay tests. The permittee may conduct quarterly bioassay tests at its option. Discharge rates shall be reduced based upon one quarterly sample, however test results from two consecutive quarters shall be required in order for discharge rates to become less restrictive.

2. Conventional parameters.

3. The following conventional pollutants: copper, lead, cadmium, and mercury in both the suspended particulate phase and the liquid phase of the sludge.

4. Chemical analysis and solid phase toxicity tests may be required on settleable solids, if settleable solids are found in the sludge.

Quarterly - Parameters required for evaluating loadings at the ++EP++ disposal site.

Page ATT-A-17

1. Organic Priority pollutant compounds for which marine water quality criteria exist.

2. Conventional and nonconventional pollutants.

3. Both the suspended particulate and liquid phase shall be analyzed.

4. Floatable materials.

5. Volume of sludge generated and transported to the designated disposal site.

Semi-annually - Compounds excluded by the London Dumping Convention and organic priority pollutants.

1. Radioactivity.

2. Full organic priority pollutant scan.

3. These tests shall be conducted only on the suspended particulate phase unless settleable solids are found in the sludge. Chemical analysis on settleable solids may be required, if settleable solids are found in the sludge.

Analytical requirements: The chemical, physical, and microbiological parameters that shall be reported by the permittee for samples collected shall include the following:

Parameters:

* Conventional Parameters

Biological Oxygen Demand

Total Residue

Total Filterable Residue

Total Nonfilterable Residue

Settleable Solids

Chemical Oxygen Demand

Total Organic Carbon

Specific Gravity

pH

* Conventional and Nonconventional Pollutants

Total Coliform Bacteria

Fecal Coliform Bacteria

Clostridium perfringens

Fecal streptococcal

Total Phosphate-Phosphorus

Total Kjeldahl-Nitrogen

Ammonia-Nitrogen

Nitrate-Nitrogen

Arsenic

Cadmium

Chromium, hexavalent

Chromium, total

Copper

Lead

Mercury

Nickle ++EP++

Page ATT-A-18

Oil and Grease

Total Petroleum Hydrocarbons

Cyanide Phenols

Selenium

Vanadium

Zinc

* Radioactivity

Gross Alpha

Gross Beta

Radium-226

Radium-228

* Priority Pollutants

Sample analysis: All toxicity testing, physical characterization, and chemical characterization will be performed on the same sample.

All tests shall be completed within EPA approved holding times.

Tests of the suspended particulate phase and liquid phase of the sludge are required as defined in the Sample Collection Frequency section above.

Toxicity tests: 96-hour bioassay tests shall be conducted on the suspended particulate phase of the sludge using the test organisms Menidia menidia and Mysidopsis bahia and/or any substitute organism designated by EPA to be more appropriate. LC50 and 95 percent confidence interval shall be calculated by one of the following methods: binomial method, trimmed Spearman-Karber method, moving average method, or probit method. Justification for method selection must be included with each data package submitted to EPA. The LC50 shall be reported in mg/L of sludge and as the percentage of the whole sludge. Toxicity test shall be conducted under the guidance and procedures established by:

APHA, 1985, Standard Methods for the Examination of Water and Wastewater, 16th Edition. American Public Health Association, Washington, D.C.,

EPA, 1985. Methods for Measuring the Acute Toxicity of Effluents to Freshwater and Marine Organisms, 3rd Edition, (EPA/600/4-85-013),

EPA. 1987. Bioassay Procedures for the Ocean Disposal Permit Program. EPA 600/9-78-010. U.S. Environmental Protection Agency, Washington, D.C., or

in documents otherwise specified by EPA.

Physical and chemical characterizations: Analysis of conventional parameters and conventional pollutants shall be ++EP++ conducted by;

Page ATT-A-19

1) Analytical procedures specified in EPA's Permittee Monitoring Requirements document or,

2) Test procedures selected by the permittee and approved by EPA.

Method detection limits and reporting units: Method detection limits required for the physical and chemical characterization listed in the following publications shall be required:

ASTM. 1985. Standard Methods for the Examination of Wastewater. American Public Health Association. 16th edition, Washington, D.C.

Test Methods for Evaluating Solid Waste. 1986. United States Environmental Protection Agency Office of Solid Waste and Emergency Responses, SW 846, 3rd Edition, Washington, DC.

Methods for chemical Analysis of Water and wastes. 1979. United States Environmental Protection Agency. Environmental Monitoring and Support Laboratory. EPA-600/4-79-020.

Specific detection limits are summarized in EPA's Permittee Monitoring Requirements document.

Reporting units for all physical and chemical characteristics shall be in mg/L of sludge or as appropriate to the specific test. Conversion factors for calculating results on dry weight basis shall be included with all data.

Methods for floatable material will be specified by EPA.

Sample replication: Replicate analysis of the quarterly chemical monitoring data is required. Replication of the monthly data is required on at least two of the twelve samples analyzed each year.

Reporting requirements: All data shall be submitted to EPA no later than 45 days following sample collection. Laboratory quality control data shall be submitted with all analytical and toxicity data. A statement verifying that the data has been audited and found to be accurate shall be included with each data package.

Quality assurance plan: The permittee shall file with EPA a written quality assurance plan covering all sampling and testing procedures. The quality assurance plan shall follow the format described in EPA 556/2-88-001, "Guide for Preparation of Quality Assurance Project Plans for the National Estuarine Program". The ++EP++

quality assurance plan must be filed with EPA within 45 days of permit issuance.

Page ATT-A-20

Monitoring may not begin before the quality assurance plan is submitted and approved by EPA.

Any change requested from the testing or analytical procedures listed in the approved quality assurance plan shall be submitted to EPA. Changes in approved testing procedures must be approved by EPA in writing prior to implementing the changes.

Testing laboratories: Within 45 days of permit issuance the permittee shall file, for approval by EPA, the name and address of the laboratory(s) designated to conduct testing.

Any change in the approved testing laboratory shall be immediately reported to EPA in writing.

Any laboratory employed for the purpose of performing the analyses and testing shall maintain a viable analytical quality control program. This program shall include:

1) Use of EPA Approved Methodologies as described in the Permittee Monitoring Requirements Document.

2) Use of EPA approved sample preservation techniques and holding times specified in the analytical and testing methods as prescribed in the EPA manual Test Methods for Evaluating Solid Waste. 1965 (SW-846).

3) Routine use and documentation of intra-laboratory quality control practices as recommended by the EPA manual Handbook for Analytical Quality Control in Water and Wastewater Laboratories. These practices shall include use and documentation of internal quality control samples, conduct audits, and data/report audits.

4) The laboratory facilities, data, records, and quality control records are subject to periodic inspection by EPA personnal.

5) EPA may require analysis of quality control samples by any laboratory employed for the purpose of compliance with this condition. Upon request, the permittee generator shall provide EPA with the analytical results from such samples.

TIER 2 MONITORING REQUIREMENTS

Permittee(s) shall be responsible for collecting information on water column structure and currents. Specifications for the deployment positions and navigational requirements for these measurements are included in EPA's Permittee Monitoring Requirements document. ++EP++

Page ATT-A-21

Surface current shear in the ocean at the disposal site shall be obtained from expendable current meter (XCP) profiles.

XCP equipment shall be provided to one transport company. Acquisition of data from this probe need not be performed off the same barge.

XCP deployments shall be from a manned barge on a weekly basis.

Data acquired by this measurement shall be sent to EPA within 7 working days from collection.

Meteorological observations shall be required for each deployment of the XCP.

Permittees shall be required to perform additional Tier 2 monitoring to determine the nearfield fate and short-term effects of sludge dumping at the Deepwater Municipal Sludge Dump Site at the direction of EPA.

TIER 3 MONITORING REQUIREMENTS

Permittees shall be responsible for acquisition of data required to determine:

Water mass movement from the Deepwater Municipal Sludge Dump Site.

Evaluation of large-scale water movements.

Determine settling of sludge particles in the field.

Surface drifters:

Permittees shall launch one surface drifter per week from a manned vessel dumping sludge within the designated disposal site for tracking by ARGOS satellite.

Data shall be submitted to EPA for analysis.

The technical activity involved in deploying drifters shall be conducted by vessel crews upon training by EPA.

EPA may modify the drifter program based upon the data received.

26. In the event that any dump site monitoring, or plant inspection, or any surveillance activities reveal that floatables ++EP++ are being ocean dumped, or that a likely probability exists that floatables are being ocean dumped, the Regional Administrator or his delegate may require the permittee to screen each vessel load of waste for floatables before any dumping of said waste shall be allowed.

Page ATT-A-22

27. Waste Manifest System a. Inspection - The permittee is required to maintain inspectors and is required to have one or more inspectors present before any of the permittee's waste is loaded onto a vessel. If a transfer of the permittee's waste occurs at a point other than at dock side of a permittee, the waste transporter shall provide an independent inspector, approved by EPA, to observe and record the transfer operation. Responsibilities and duties of the inspectors, for the purposes and terms of this permit condition, are described in Attachment No. 2.

All vessels shall be maintained with a system of sequentially numbered EPA seals which will be provided to the permittee by EPA. This system shall require that all discharge valves on all feeder vessels, with the following exception, be permanently sealed with approved EPA seals. Those valves that cannot be permanently sealed, due to their use for loading and unloading operations, shall be re-sealed by the inspector immediately upon completion of each transfer (loading or unloading). When ocean going vessels receive waste, all discharge valves shall be sealed prior to loading and all other valves shall be sealed immediately upon completion of each loading operation.

For the purposes and terms of this permit condition a feeder vessel is defined as any vessel that is used to transfer waste from one location to another. An ocean going vessel is defined as any vessel that is authorized to dispose of waste at the DMSDS. Any vessel that can be used as both a feeder vessel and an ocean going vessel shall at all times be considered an ocean going vessel.

No transfer of waste shall occur between a permittee and feeder vessel or ocean going vessel, or feeder vessel and ocean going vessel, if any seal is broken or missing, unless broken by the inspector to allow for such transfer or unless broken by the waste transporter on an ocean going vessel as described in the following paragraph. If any seal(s) is broken or missing, the vessel shall remain at dock side or transfer point and the inspector shall immediately notify EPA and/or the Coast Guard, and the permittee.

Prior to leaving for the DMSDS, all ocean going vessels shall have all of their valves sealed. Thereafter, no seal on the ocean going vessel shall be broken until said vessel enters the DMSDS, at which time the waste transporter shall break only those seal(s) necessary for the discharge operation. If it is ++EP++

determined that any seal(s) has been broken prior to such time, the vessel shall not be permitted to discharge any waste and shall immediately return to port unless permitted by the Coast Guard or EPA to proceed.

Page ATT-A-23

The waste transporter shall provide for safe access (i.e., gangplank with safety rails, mechanically secured to either the dock or barge) to the barge from dock side. When two or more barges are moored side-by-side at dock side the waste transporter shall provide for safe access (i.e., gangway with safety rails, mechanically secured to either of the barges) from barge to barge.

b. Waste Manifest Forms - Each time a waste transfer occurs a record of the transfer must be maintained by the permittee's inspector (when transfer occurs at dock side) and as applicable the independent waste transporter's inspector. The time of loading/unloading, location, arrival and departure time, and quantity of waste transferred as well as other required information shall be clearly indicated on the Inspector form (see Attachment No. 3). Such forms shall be submitted to EPA (original form) and the Coast Guard within 3 business days after completion of each loading or transfer operation.

In addition, the inspector shall record information on the transfer operation on the Manifest Form Attachment No. 4, retain a copy for his records and pass on such form to the vessel operator. The vessel operator shall surrender such form to the inspector at the next transfer point for the inspector's use. This procedure shall be repeated until the last transfer point, at which time the inspector recording the last transfer shall return the form to the vessel operator, who shall surrender the form to the master of the vessel on the ocean going vessel. Said form(s) (i.e., Attachment No. 4) shall then be attached to the ODNF and submitted to the EPA at the same time as the ODNF. Additionally, the waste transporter (vessel operator) shall also maintain a monthly log of the seal numbers and other information on the attached EPA form. This form (see Attachment No. 5) shall be maintained on each vessel and submitted to EPA (original form) and the Coast Guard within 10 calendar days of the end of each month.

c. Accountability - Each permittee and each waste transporter shall maintain a record that shows the date upon which each of the required forms, under this condition, was mailed by said permittee and said waste transporter to the EPA and the Coast Guard. Said record will be maintained on a monthly basis and shall be submitted to the EPA and the Coast Guard within 15 calendar days of the end of each month. All broken seals shall be returned to the EPA at the same time as the above mentioned record along with a listing of the seal identification numbers for the returned seals. ++EP++

Page ATT-A-24

28. Notice to Regulatory Agencies - The waste transporter shall provide telephone notification of sailing to the Captain of the Port (COTP) at 212-668-7936 not later than two (2) hours prior to the estimated time of departure for the dump site designated in Condition No. 20. The waste transporter shall confirm the exact time of departure within thirty (30) minutes of the actual departure time, and shall immediately notify the COTP upon any changes in the estimated time of departure greater than one (1) hour.

The following information shall be provided in the notification of sailing.

(1) Permit number.

(2) Name of the towed vessel and tugboat, or self-propelled vessel.

(3) Name of the transporter.

(4) Type and quantity of waste being transported.

(5) Place of departure.

(6) Location of dump site.

(7) Time of departure.

(8) Estimated time of arrival at the dump site.

(9) Estimated time of departure from the dump site.

(10) Estimated time of return to port.

29. a. No vessel shall transport waste to the DMSDS for the purpose of dumping said waste unless a shiprider is on board, unless waived by the EPA Regional Administrator or his delegate. Said shipriders shall be approved by EPA and shall be supplied by the permittee.

b. The shiprider shall be provided with quarters including, at least, a bunk solely for his use plus access to sanitary toilet facilities. These quarters, as well as the shiprider's subsistence while on board, shall be provided by and shall be at the expense of the waste transporter. Further, should the return port be different from that of the port of departure, the shiprider shall be provided transportation to the port of departure at the expense of the waste transporter. The shiprider shall be treated courteously and afforded free and immediate access to all navigational capabilities on the vessel which can provide information on position, course speed, depth of water, bearing, etc., and to communications equipment.

c. The attached shiprider form (see Attachment No. 6) shall be completely filled out, signed and dated by the shiprider and shall be mailed to EPA within 72 hours after the completion of the voyage.

30. a. The waste transporter shall maintain and submit to EPA, the Captain of the Port (COTP) and the permittee(s) on a ++EP++

monthly basis Attachment No. 8 which identifies the following information:

Page ATT-A-25

(1) Name of each vessel that departed port during the month and dumped waste at the designated dump site. Any vessel that commenced discharge operations at anytime during the month shall be reported in that month, regardless of when said discharge operation was completed.

(2) Date and time of departure of each vessel.

(3) COTP reference number for each vessel mission.

(4) Quantity of waste (gallons, wet tons) from each permittee (s) dumped by each vessel during each vessel mission.

(5) Date and time upon which each vessel commenced discharge operations.

(6) Date upon which each ONDF was mailed to EPA.

b. The permittee shall submit to EPA, on a monthly basis Attachment No. 9 which identifies the following information:

(1) Name of each vessel upon which any waste generated from permittee's facility was transferred to, at anytime during the month.

(2) Date and time that permittee commenced transferring waste to each vessel. Any waste transfer that commenced at anytime during the month, shall be reported in that month, regardless of when said waste transfer was completed.

(3) Date and time that permittee completed transfer of waste to each vessel.

(4) Quantity of waste (gallons, wet tons, dry tons) loaded onto each vessel.

c. Each report required by this condition shall be received by EPA and all other named parties, within 10 days of the end of the reporting period. First reporting period begins August 15, 1989, and ends on August 31, 1989. The first report shall be received by EPA on or before September 10, 1989. The second reporting period begins September 1, 1989, and ends on September 30, 1989. The second report shall be received by EPA on or before October 10, 1989 and such reporting shall continue monthly thereafter.

31. Reports and Correspondence - All reports and related correspondence required by the permit to be submitted to EPA shall be addressed as follows:

U.S. Environmental Protection Agency

Water Management Division ++EP++

Page ATT-A-26

All reports and related correspondence required by the permit to be submitted to the U.S. Coast Guard shall be addressed as follows:

U.S. Coast Guard

Captain of the Port

Governors Island

New York, New York 10004

32. Liability - The permittee is liable for compliance with all Conditions, including Attachments, contained in this permit.

a. The permittee and waste transporter shall be jointly and severally liable for compliance with all Conditions, including Attachments of this permit with the exception of the following: Condition Nos. 25 and 30 (b).

b. Any person owning or operating a towing vessel employed for the purposes of the activities authorized by this permit, shall be jointly and severally liable together with the permittee and waste transporter for compliance with all Conditions including Attachments of this permit with the exception of the following: Condition Nos. 23, 25, 26, 29 (c), and 30.

By authority of Administrator

United States Environmental Protection Agency:

William J. Muszynski

Acting Regional Administrator

Signed this day of , 1989: ++EP++

Page ATT-1-1 OCEAN DUMPING NOTIFICATION FORM (PLEASE PRINT OR TYPE)

I. COTP REFERENCE NUMBER:

NAME OF BARGE:

DATE AND TIME OF DEPARTURE FROM PORT:

DATE AND TIME OF RETURN TO PORT:

POINT OF DEPARTURE:

NAME OF TOWING COMPANY:

NAME OF TUGBOAT:

NAME OF WASTE TRANSPORTER:

II. TYPE OF MATERIAL DUMPED:

QUANTITY DUMPED (GALLONS and WET TONS):

III. DATE TIME LATITUDE LONGITUDE

ARRIVED AT DUMPSITE: STARTED DUMP: ENDED DUMP: DEPARTED DUMPSITE:

IV. SHOW ALL ORIGINS AND QUANTITIES.

QUANTITY PERMITTEE(S) GALLONS WET TONS TOTAL

NOTE: TOTAL SHOWN HERE MUST EQUAL THE QUANTITY DUMPED SHOWN IN SECTION II ABOVE.

REQUIRED DISCHARGE RATE

ACTUAL DISCHARGE RATE DURING DUMPING ++EP++

Page ATT-1-2

BARGE NAME

COTP REFERENCE NUMBER

V.

1. WHAT WAS THE MINIMUM VESSEL SPEED DURING THE DISCHARGE OPERATION?

NAUTICAL MILES PER HOUR.

2. WHAT WAS THE MAXIMUM VESSEL SPEED DURING THE DISCHARGE OPERATION?

NAUTICAL MILES PER HOUR.

3. WHAT WAS THE AVERAGE VESSEL SPEED DURING THE DISCHARGE OPERATION?

NAUTICAL MILES PER HOUR.

4. WERE THE SLUDGE TANKS AT ANYTIME CLEANSED AND FLUSHED WITH SEA WATER? YES NO

IF YES COMPLETE THE FOLLOWING:

DATE TIME LATITUDE LONGITUDE START FLUSHING: END FLUSHING:

5. DESCRIBE WEATHER CONDITIONS DURING THE DISCHARGE OPERATION.

If Beaufort Force 5 (or greater) Wind Conditions:

Wind Wind Average Allowable Actual Sea Speed Dir. Vessel Discharge Discharge State (knots) Speed Rate Rate Time Start Time End

6. GENERAL COMMENTS:

VI. TO THE BEST OF MY KNOWLEDGE, ALL APPLICABLE CONDITIONS OF THE U.S. ENVIRONMENTAL PROTECTION AGENCY'S OCEAN DUMPING PERMIT WERE MET.

SIGNATURE:

PRINT NAME:

DATE: ++EP++

Page ATT-1-3

This document contains a navigational overlay of the above named vessel's trackline during a dumping operation under the conditions of U.S. Environmental Protection Agency Permit Number . The overlay represents an accurate description of the time and position at critical points of the dumping operation, including entry and exit from the dump site; beginning and end of dump; and points every two (2) hours along the discharge trackline. As master of the vessel, I further certify that the dumping conditions of the applicable permit were met.

Date:

Signed:

COTP No.

Barge Name:

Deepwater Municipal Sludge Dump Site PICTURE/DIAGRAM/ILLUSTRATION OMITTED

THIS COLLECTION OF INFORMATION HAS BEEN SUBMITTED TO NINE OR FEWER PERSONS (PERMITTEES) AND THEREFORE IS NOT SUBJECT TO THE PAPERWORK REDUCTION ACT. (ILLEGIBLE) ++EP++

Page ATT-2-1 RESPONSIBILITIES AND DUTIES OF INSPECTION PERSONNEL

1) All inspection personnel or their supervisor(s) shall be instructed in their duties and responsibilities by the EPA.

2) All inspection personnel must be approved by EPA.

3) An inspector may be an employee of a permittee.

4) The number of inspectors shall be limited to a reasonable number for each permittee.

5) During transfer operations the inspector shall not have any other responsibilities or duties other than those that are involved in the transfer operation with the exception of the following:

If there is a discontinuation in the transfer operation the inspector(s) may leave after sealing all un-sealed valves. Thereafter, the transfer operation shall not resume until an inspector(s) is present to break the seal(s).

6) An inspector shall be required to physically inspect each seal and record or verify the seal identification number.

7) An inspector is responsible for immediately notifying EPA and the Coast Guard of any permit violation.

AT LEAST ONE OF THE PHONE NUMBERS SHOWN BELOW CAN BE REACHED 24 HOURS A DAY 7 DAYS A WEEK.

U.S. ENVIRONMENTAL PROTECTION AGENCY

(212) 264-5692

U.S. COAST GUARD

(212) 668-7936 ++EP++

Page ATT-3-1 INSPECTOR FORM

Barge Name

Permittee(s)

NPDES Permit No.(s)

MPRSA Permit No.

Arrival Date

What location did barge come from

Departure Date

Full Name of Inspector

Full Name of Barge Operators

Name of Towing Vessel

Full Name of Vessel Master

Destination

Control No.

1. Broken seals discovered prior to transfer?

2. Loss/discharge of sludge during transfer?

3. Any inconsistancy between seal 's & barge leg?

Draft Date Time Fora Aft

Arrive Dock/Barge Start Loading End Loading Departure

Note: Indicate whether draft readings were taken port or starboard. All times are to be expressed in military time. ++EP++

Page ATT-3-2

Table Omitted ++EP++

Page ATT-3-3

Barge Name

Date

IV.

Seals Broken Replacement Seals Valve Seal Valve Seal

V. 1. Were any of the seals broken or missing?

List valve number(s) under "Comments"

If yes, was EPA or COTF and Permittee notified by the Inspector?

2. Do all seal numbers prior to transfer match the seal numbers maintained on the barge's log of seals?

If no, explain under "Comments"

3. Were there any disruptions in the loading/litering operation? Specify under "Comments" ++EP++

Page ATT-3-4

Barge Name

Date

4. Were there any spills during the loading/litering operation?

If yes, explain under "Comments" and describe actions taken to mitigate harm to the environment.

Comments:

VI. I certify under penalty of law that I have personally examined and am familiar with the information submitted herein. I certify the submitted information is true, accurate, and complete. I am aware that there are significant penalties for submitting false information; including the possibility of fine and imprisonment see 18 USC Section1001. (Penalties under this statute may include fines up to $10,000 and maximum imprisonment of between 6 months and 5 years.)

Signature

Date

AT LEAST ONE OF THE PHONE NUMBERS SHOWN BELOW CAN BE REACHED 24 HOURS A DAY 7 DAYS A WEEK.

U.S. ENVIRONMENTAL PROTECTION AGENCY (212) 264-5692

U.S. COAST GUARD (212) 668-7936

Submit to the following within 72 hours of completion of transfer.

U.S. Environmental Protection Agency

Water Management Division

Room 805

26 Federal Plaza

New York, New York 10278

ATTN: Ocean Dumping Program

U.S. Coast Guard

Governors Island

New York, New York 10004

ATTN: Captain of the Port ++EP++

Page ATT-4-1 MANIFEST FORM

PICTURE/DIAGRAM/ILLUSTRATION OMITTED ++EP++

Page ATT-5-1 ATTACHMENT No. 5

(ILLEGIBLE)

THIS COLLECTION OF INFORMATION HAS BEEN SUBMITTED TO NINE OR FEWER PERSONS (PERMITTEES) AND THEREFORE IS NOT SUBJECT TO THE PAPERWORK REDUCTION ACT.

MONTHLY BARGE LOG

BARGE NAME:

SLUDGE VOLUMES (GALLONS)

Transfer Transfer Prior Control Transfer Begin End To Number Location Date/Time Date/Time Transfer Control Total After Next Number Transferred Transfer Destination

All times to be expressed in military time.

Signature:

Print Name: ++EP++

Page ATT-5-2 ATTACHMENT Table Omitted ++EP++ Page ATT-6-1 ATTACHMENT No. 6 SHIPRIDER FORM (PLEASE PRINT OR TYPE)

To:

Environmental Protection Agency

Water Management Division

COTP Reference No.

Room 805

Date of Departure

New York, New York 10278

MPRSA Permit No.

I. Full Name of Shiprider

Name of Employer

Name of Vessel Master

Name of Tugboat

Name of Barge

Departure Location

Time & Date of Departure

Quantity of Sludge Loaded onto Barge

(Gallons and Wet Tons)

Return Location

Time & Date of Return

II.

Date Time Latitude Longitude :At Point of Departure :2 Hours after Leaving Port

:10 Hours after Leaving Port

:Arrival at Dump Site :Start of Discharge :End of Discharge :Exit Dump Site :Return to Port

All times to be expressed in military time

III.

1) Were there any disruptions (i.e., start/stop/start discharge) in the discharge operation? Yes No

If yes explain .

2) What was the minimum vessel speed that you observed during the dumping operation? Nautical Miles Per Hour.

3) What was the maximum vessel speed that you observed during the dumping operation? Nautical Miles Per Hour.

4) Were you able to observe a sludge plume? Yes No

If no explain . ++EP++

Page ATT-6-2 ATTACHMENT No. 6

5) Were the sludge tanks at anytime cleansed and flushed with Sea Water? Yes No

If yes complete the following:

Date Time Latitude Longitude Start Flushing: End Flushing:

6) Describe weather conditions during the discharge operation.

If Beaufort Force 5 (or greater) Wind Conditions:

Wind Wind Sea Speed Dir. State (knots) Time Start Time End

7) Did you see any other barge(s) inside the dump site? Yes No

If yes give date(s) and time(s) of sighting(s) and name(s) of barge( s)

General Comments:

V. (ILLEGIBLE)

Signature

Print Name

Date

Submit to the following within 72 hours after return to port:

To:

U.S. Environmental Protection Agency

Water Management Division

Room 805

26 Federal Plaza

New York, New York 10278

Att: Ocean Dumping Program ++EP++

Page ATT-7-1 ATTACHMENT No. 7 Beaufort Wind Scale Table Omitted ++EP++ Page ATT-8-1 ATTACHMENT No. 8 MONTHLY TRANSPORTATION AND DUMPING LOG

Waste Transporter:

Month/Year:

Departure Barge COTP Reference Volume Volume (By Permittee) Date/Time Name Name Gallons Wet Tons Gallons Monthly Totals Departure Start of Dis. Date ODNF Date/Time Date/Time Mailed to EPA Monthly Totals ++EP++ Page ATT-9-1 MONTHLY SLUDGE VOLUME LOG

Permittee:

Month/Year: Loading Started Barge Loading Completed Quantity Date/ Time Name Date/Time Gallons Wet Tons Dry Tons

Monthly Totals ++EP++

PASSAIC VALLEY (PVSC)

DOC 01 OF 02

Complaint

02-89-C028

MPRSA

MUNI

19890907

19890804

NJD065816969

PASSAIC VALLEY SEWERAGE COMMISSION

NEWARK, NJ

89-3340

02

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA and STATE OF NEW JERSEY, Plaintiffs,

v.

PASSAIC VALLEY SEWERAGE COMMISSIONERS, Defendant.

Civil Action No. 89-3340

COMPLAINT

Plaintiff, the United States of America, through its undersigned attorneys, at the request and on behalf of the Administrator of the United States Environmental Protection Agency ("EPA"), alleges as follows:

NATURE OF ACTION

1. This is a civil action pursuant to Section 105(d) of the Marine Protection, Research and Sanctuaries Act ("MPRSA"), 33 U.S.C. Section 1415(d), as amended, for injunctive relief against the Passaic Valley Sewerage Commissioners ("PVSC"), to abate imminent violations of Section 104B of the Act, 33 U.S.C. Section 1414b.

JURISDICTION AND VENUE

2. This Court has jurisdiction over the subject matter of this action and over the parties herein pursuant to Section 105(d) of the Act, 33 U.S.C. Section 1415(d), and 28 U.S.C. Sub-Section 1331 and 1345. ++EP++

Page 2

3. Venue is proper in this judicial district pursuant to 28 U.S.C. Section 1391(b) and (c), because this is the district in which PVSC is located and has its principal place of business.

PARTIES

4. The United States of America, acting on behalf of the Environmental Protection Agency, is a plaintiff in this action.

5. The State of New Jersey is listed as a plaintiff herein. Section 104B(c) of the Act, 33 U.S.C. Section 1414b(c), requires that the State be a party to any agreement which permits ocean dumping after August 14, 1989. The State has signed such an agreement in the form of the consent decree filed with this complaint. The State has an interest in enforcing this agreement and is a necessary party to this action. Accordingly, the State is designated as a party plaintiff in the caption herein. The State will file the appropriate motion to join this action as a party plaintiff.

6. Defendant PVSC is a public corporation and political unit of the State of New Jersey with its principal place of business at 600 Wilson Avenue, Newark, New Jersey. PVSC was created by an Act of the New Jersey legislature for the purpose of "relieving the streams and rivers in the Passaic Valley from pollution, and to provide a plan for the prevention thereof and providing for the raising, expenditure and payment of moneys necessary for this purpose." See Act of March 27, 1902; N.J.S.A. 58:14-2. PVSC operates a secondary wastewater treatment plant, which serves portions of Essex, Bergen, Passaic and Hudson ++EP++ Counties.

Page 3

PVSC is a "person" within the meaning of the MPRSA, 33 U.S.C. Sub-Section 1402, 1414b.

STATUTORY BACKGROUND

7. Congress enacted the MPRSA in 1972 to regulate the dumping of materials into ocean waters and to "prevent or strictly limit the dumping into ocean waters of any material which would adversely affect human health, welfare, or amenities, or the marine environment, ecological systems, or economic potentialities." 33 U.S.C. Section 1401(a).

8. The MPRSA prohibits, inter alia, any dumping of industrial wastes or sewage sludge into ocean waters except as authorized by a permit issued by EPA. 33 U.S.C. Sub-Section 1411, 1412, 1412a.

9. In 1988, Congress enacted the Ocean Dumping Ban Act of 1988 (the "Ban Act"), Title I of Pub. L. 100-688, which amended the MPRSA to ensure the phasing out and termination of all ocean dumping of sewage sludge and industrial waste. As amended, the MPRSA makes it unlawful, on and after the 270th day after the enactment of the Ban Act, or August 14, 1989, for any person to dump sewage sludge or industrial waste, or to transport sewage sludge or industrial waste for the purpose of dumping it, into ocean waters unless such person has (1) entered into a compliance agreement or enforcement agreement which meets the requirements of Section 104B of the MPRSA, and (2) obtained a permit issued by EPA authorizing such dumping or transportation. 33 U. S.C. Sub-Section 1414b(a)(1). ++EP++

Page 4

10. Under Section 104B(c) of the MPRSA, as amended by the Ban Act, EPA may issue a permit for the dumping and transportation of sewage sludge or industrial waste into the ocean only after, and conditioned upon, the permittee's entering into a compliance agreement, where permitted by law, or an enforcement agreement, either of which must meet the requirements of that section.

11. The amended MPRSA further makes it unlawful for any person to dump into ocean waters, or to transport for the purpose of dumping into ocean waters, sewage sludge or industrial waste after December 31, 1991. 33 U.S.C. Section 1414b(a)(1)(B).

12. Under Section 104B(c) of the MPRSA, as amended by the Ban Act, the phasing out and termination of ocean dumping, or the transportation for the purpose of ocean dumping, of sewage sludge and industrial waste, must be achieved through the design, construction and full implementation of an alternative system for the management of sewage sludge and industrial waste. 33 U.S.C. 1414b(c).

13. The MPRSA defines "sewage sludge" as "any solid, semisolid or liquid waste generated by a wastewater treatment plant, other than an excluded material". 33 U.S.C. Section 1414b(k)(6).

14. Section 105(d) of the MPRSA authorizes the Attorney General or his delegate to "bring actions for equitable relief to enjoin an imminent or continuing violation" of the Act, of regulations promulgated under the Act, or of regulations promulgated under the Act, or of permits issued under the Act. 33 U.S.C. Section 1415(d). ++EP++

Page 5 CLAIM FOR RELIEF

15. Paragraphs 1 through 14 are realleged and incorporated herein by reference.

16. PVSC currently generates sewage sludge, as defined by the MPRSA, at a rate of approximately 1,354,694 wet tons per year. PVSC transports its sewage sludge by barge and dumps it into the water of the Deepwater Municipal Sludge Dump Site ("106-Mile Site"). The 106-Mile Site is located on the edge of the continental shelf, 115 nautical miles from Atlantic City, New Jersey, a location that is in "ocean waters" as defined by the MPRSA. 33 U.S.C. Section 1402(b).

17. Section 104B of the MPRSA requires PVSC to phase out and terminate dumping, or transportation for the purpose of dumping, of sewage sludge into ocean waters through the design, construction and full implementation of an alternative system for the management of sewage sludge, by not later than December 31, 1991. PVSC has agreed to employ interim, land-based measures for sewage sludge disposal not later than March 17, 1991 and to design, construct, and fully implement an alternative system for the management of its sewage sludge by December 31, 1996.

18. Upon information and belief, PVSC will not terminate dumping, or transportation for the purpose of dumping, of sewage sludge into ocean waters through the design, construction and full implementation of an alternative system for the management of sewage sludge, by December 31, 1991, as mandated by Section 104B of the MPRSA. ++EP++

Page 6

19. Because PVSC will not achieve full implementation of an alternative system for the management of its sewage sludge, there is a continuing danger that, despite its expressed intent to employ interim measures for land-based disposal, PVSC will continue to dump, or to transport for the purpose of dumping, sewage sludge into ocean waters after December 31, 1991, in violation of Section 104B(a)(1)(B) of the MPRSA, unless enjoined by an order of this Court.

WHEREFORE, Plaintiff United States of America respectfully prays that this Court:

1. Approve and enter the agreement and Consent Decree filed herewith:

a. enjoining PVSC from dumping any sewage sludge or industrial waste into ocean waters except in accordance with the agreement and consent decree with EPA and the State, as required by the MPRSA and filed herewith, and a permit issued by EPA, as required by the MPRSA;

b. requiring PVSC to develop and implement interim measures for disposal of its sewage sludge that will allow PVSC to terminate all ocean dumping of its sewage sludge as soon as practicable but in no event later than March 16, 1991;

c. requiring PVSC to develop and implement an alternative system for management of its sewage sludge by December 31, 1991 or as soon thereafter as practicable, but in no event later than December 31, 1996; and ++EP++

Page 7

2. Grant the United States such other relief as the Court deems just and proper.

Respectfully submitted,

/s/ Donald Carr

DONALD A. CARR

Acting Assistant Attorney General

Land and Natural Resources

Division

/s/ Louise F. Milkman

BRUCE C. BUCKHEIT

WILLIAM D. BRIGHTON

LOUISE F. MILKMAN

Trial Attorneys

Land and Natural Resources

Division

United States Department of

Justice

P.O. Box 7611

Washington, D.C. 20044-7611

(202) 633-5250

SAMUEL A. ALITO, JR.

United States Attorney

District of New Jersey

/s/

VINCENT GENTILE

Chief, Civil Division

United States Attorney's Office

970 Broad Street

Newark, New Jersey

(201) 621-2947

OF COUNSEL:

CHARLES E. HOFFMANN

Assistant Branch Chief

Office of Regional Counsel

U.S. Environmental Protection

Agency - Region II

26 Federal Plaza

26 Federal Plaza

New York, New York 10278 ++EP++

BERGEN COUNTY UTILITIES AUTHORITY

DOC 02 of 02

CONSENT DECREE AND TRUST AGREEMENT

02-89-C018

MPRSA

MUNI

19890822

19890822

NJD092732569

BERGEN COUNTY UTILITIES AUTHORITY

LITTLE FERRY, NJ

89-3344

02

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

UNITED STATES OF AMERICA, and STATE OF NEW JERSEY, Plaintiffs,

v.

BERGEN COUNTY UTILITIES AUTHORITY, Defendant.

CIVIL ACTION NO. 89-3344

CONSENT DECREE

WHEREAS, the United States and the Environmental Protection Agency ("EPA"), the State of New Jersey ("the State"), on behalf of the New Jersey Department of Environmental Protection ("NJDEP") and the Bergen County Utilities Authority ("the BCUA" or "Defendant") enter into this Consent Decree to ensure the phasing out and termination of ocean dumping and the transportation for the purpose of ocean dumping, of sewage sludge pursuant to the Ocean Dumping Ban Act of 1988 ("the Ban Act"), P.L. 100-688; and

WHEREAS, the New Jersey Ocean Sludge Dumping Elimination Act, L. 1988, C.57 supplementing the New Jersey Water Pollution Control Act, N. J.S.A. 58 10A-1 et seq. ("the New Jersey Ban Act") ++EP++

requires that ocean dumping of sludge by New Jersey municipal treatment works be terminated by March 17, 1991; and

Page 2

WHEREAS, the United States, EPA, the State and the Defendant have each consented to the making and entering of this Consent Decree, without trial or adjudication of any issues of fact or law and without this Decree constituting any admission by any party with respect to any such issues, and the Court having considered the matter and being duly advised, and it being in the public interest, it is hereby ORDERED and DECREED as follows:

JURISDICTION

1. This Court has jurisdiction over the subject matter and over the parties hereto under 28 U.S.C.Section1345, and 33 U.S.C. Section1415. The Court finds that it has jurisdiction and that Plaintiffs' complaint states a claim upon which relief may be granted.

APPLICATION AND BINDING EFFECT

II. The provisions of this Consent Decree ("Decree") shall apply to and be binding upon all parties to this Decree, their officers, directors, agents, servants, employees, successors, assigns, contractors, and all persons, firms and corporations in active concert or participation with them. Prior to any transfer of ownership or operation of the Defendant's publicly owned treatment works, the Defendant shall give written notice of this Decree to any successor(s) in interest and shall simultaneously notify, in writing, EPA and the State that such notice has been given to each successor in interest. ++EP++

Page 3 PHASE OUT OF OCEAN DUMPING

III. The Defendant shall cease ocean dumping of sewage sludge by March 17, 1991. Until cessation of ocean dumping and final implementation of the alternative system of sewage sludge management, the Defendant shall comply with all requirements of this Decree and of any final ocean dumping permit that may be issued under the Marine Protection, Research, and Sanctuaries Act of 1972, as amended, 33 U.S. C. 1401 et seq. ("MPRSA" or "the Act"). No ocean dumping or transportation for the purpose of ocean dumping of sewage sludge shall be conducted after August 14, 1989, unless prior to such activity the Defendant has obtained a new, effective, final ocean dumping permit under Section 102 of the MPRSA, 33 U.S.C. 1412. Defendant shall comply with all terms and conditions of any final permit issued pursuant to the MPRSA during the pendency of this Decree. In the event that any part of the final permit is challenged or stayed, the Defendant shall comply with all terms and conditions of the draft final permit, attached herto and incorporated herein as Attachment A, during the pendency of such challenge. In any permit enforcement proceeding Defendant reserves all defenses available to it at law, other than defenses relating to the lawfulness of the permit and of its terms and conditions. Should ocean dumping continue under this Decree beyond the effective term of the permit, and no new permit be issued, the terms and conditions of the most recent permit issued to the Defendant ++EP++

after May 31, 1989, shall continue to be complied with as conditions of this Decree.

Page 4 IV. SCHEDULES FOR IMPLEMENTATION OF AN ALTERNATATE SYSTEM

IV.A. The BCUA shall implement the following plan for an alternative system for the management and disposal of sewage sludge transported or dumped by the BCUA: on site dewatering of its sewage sludge, plus operation of an individual thermal reduction facility, ash handling system, and ash vitrification facility, as described in April 30, 1989 submittal to NJDEP, and as determined by the state to be acceptable.

IV.B. In implementing its plan for an alternative system sludge management and disposal, BCUA shall comply with the following schedule:

1. Complete and submit of Sludge Management Plan with a selected alternative system (or alternative systems if more than one method of sludge management will be used as part of the plan) by April 30, 1989.

2. Establish local pretreatment limits as necessary for the long term alternative system by January 1, 1992.

3. Receive detailed technical determination from New Jersey Department of Environmental Protection for the selected alternative system identified in the sludge management plan by July 7, 1989.

4. Issue Request for Qualifications (RFQ) to Design/Construct contractors and prepare list of qualified contractors by December 1, 1989.

5. Issue Request for Proposals (RFP) to qualified Design/Construct Contractors by February 1, 1990.

6. Select and award contract to Design/Construct Contractor by September 1, 1991.

7. Initiate preliminary engineering necessary for submission of permit applications by September 15, 1991. ++EP++

Page 5

8./ Submit complete application to NJDEP for Air Pollution Control Permit by March 1, 1992.

((// The State will determine within 30 days of permit application, whether a permit application is satisfactory for purposes of determining compliance with the milestones set forth in paragraph IV of this Decree. Notwithstanding the fact that the permit application was satisfactory at the time it was submitted, the State reserves the right to require additional information while reviewing the permit application in order to develop a draft determination on the permit or a draft permit with appropriate extensions to subsequent milestones being made in accordance with paragraph X of this Decree, where defendant's application was satisfactory.))

9. Receive draft determination on air permit from New Jersey Department of Environmental Protection by September 1, 1992 and final determination by February 1, 1993.

10. Acquire sites, if necessary, for the alternative system or systems selected by July 1, 1992.

11. Commence construction of facilities for the alternative system or systems selected by July 1, 1993.

12. Commence testing of the alternative system or system, by June 1, 1995.

13. Complete all construction related activities necessary for operation by July 1, 1995.

14. Complete testing of alternative system or systems and commence full operation of said system or systems by January 1, 1996.

15. Achieve compliance with all sludge quality criteria requirements for the selected long term sludge management alternative by January 1, 1995.

IV.C. The BCUA shall implement interim measures to cease ocean disposal of sewage sludge by March 17 in accordance with the following schedule:

1. Complete final design of sludge dewatering equipment and facilities by September 1, 1989.

2. Satisfy all TWA Stage II application deficiencies for chemical stabilization equipment and facilities by October 1, 1989.

3. Advertise for bids for sludge dewatering equipment and facilities by October 1, 1989.

4. Receive determination for Treatment Works Approval Stage II for dewatering facility by August 14, 1989 and for the chemical stabilization facility from NJDEP by November 15, 1989.

5. Award contracts for sludge dewatering equipment and facilities by December 1, 1989.

6. Commence on-site construction of sludge dewatering equipment and facilities by December 31, 1989.

Page 6

7. Advertise for bids for chemical stabilization facilities by January 1, 1990.

8. Award contracts for chemical stabilization facilities by February 1, 1990.

9. Commence on-site construction of chemical stabilization facilities by March 1, 1990.

10. Secure contracts for interim management of sewage sludge for period of time from March 17, 1991 to date upon which alternative system or systems referred in paragraph IV above become operational by October 31, 1990.

11. Secure contracts for a contingent interim management method for use if the primary interim management method becomes unavailable, by October 31, 1990.

12. Complete all construction related activities necessary for operation, including shakedown, and initiate operation of sludge dewatering and chemical stabilization facilities and cease ocean disposal by March 17, 1991.

V. REPORTS AND CERTIFICATIONS

A. Beginning with the second calendar month after entry of this Decree, and continuing monthly thereafter until Defendant ceases ocean disposal of sewage sludge, the Defendant shall submit in writing to EPA and the State a report and certification detailing the status and progress of the interim measures under paragraph IV for phasing out and terminating ocean dumping of sewage sludge and for implementing its interim system of land based sludge management. ++EP++

Page 7

B. Commencing with the second calendar month after entry of this Decree, the Defendant shall submit quarterly reports and certifications concerning its progress in implementing its long term alternative land-based system of sludge management.

c. The reports required by this paragraph shall include a description of the work performed in the previous period and a projection of the work to be performed during the following twelve month period pursuant to this Decree. The duly authorized representative ("representative") is the person with knowledge and authority to make the reports and to certify as to their accuracy as follows. The representative shall certify in the form for certifications of Discharge Monitoring Reports under the Clean Water Act, as set out at 40 C.F.R. 122.22(d), that the Defendant has met all schedule milestones in the prior period, and that the Defendant continues to be on schedule to meet all schedule milestones as set forth in paragraph IV of this Decree. Where the representative is unable to certify compliance, he or she shall identify the noncompliance, the reasons for such noncompliance, and the measures being taken to remedy the noncompliance. The Defendant shall submit such reports and certifications of compliance by certified mail, return receipt requested within 15 days of the end of the reporting period. Reports and certifications indicating that the Defendant is not in compliance with the Decree shall also be submitted by either telefax or express mail. ++EP++

Page 8

D. Within 15 days of each milestone date specified in the schedules in paragraph IV, the Defendant shall submit in writing to EPA and the State a report setting forth in detail whether or not the Defendant has complied in full with the requirement and if not, the work remaining to be done to achieve full compliance and a schedule for completion of such work. If a schedule milestone date is not met, the representative shall state what impact, if any, there will be on compliance with the final schedule dates in paragraph IV, and subsequently prepare and submit an acceleration plan to ensure that schedule dates in paragraph IV will be complied with to the extent possible. Defendant may incorporate this information in monthly or quarterly reports required by subparagraph A of this paragraph, provided that the Defendant does so within 31 days of a milestone if the milestone is timely achieved or within 15 days of a milestone if such milestone is not met.

E. The EPA and the State shall confer quarterly to evaluate the compliance of the Defendant with the schedules established in paragraph IV above. Upon 15 days notice from either EPA or the State, the Defendant shall provide a properly informed and authorized representative for such conference to discuss progress and problems in the planning, design and construction of the alternative systems for sludge management and the interim measures needed to eliminate the ocean disposal of sewage sludge. ++EP++

Page 9

F. The Defendant shall submit to EPA and the State a quarterly report detailing the following: (1) the volume of sludge disposed of in the ocean during the preceding quarter; (2) the dollar amounts pursuant to paragraph VIII of this Decree for the volume of sludge disposed of in the ocean; (3) the date and amounts of payments made in accordance with paragraph VIII of this Decree by Defendant; and (4) verification of payment and sufficient documentation of payments by defendant's auditors (including documentation that appropriate payments were made) for all payments due in the reporting period. This report shall be submitted by the fifteenth day of the second month following the end of the calendar quarter. The first report shall be submitted by November 15, 1989.

G. The Governor of the State shall submit to the Administrator of EPA on September 30 of each year, commencing with 1989, a progress report as required by Section 104B(h) of the MPRSA, 33 U.S.C. 1414b(h). Failure to submit such a report shall result in a withholding of funds from the State pursuant to Section 104B(h) (2) of the MPRSA, 33 U.S.C. 1414b(h) (2).

VI. PROGRAM OVERSIGHT BY DEFENDANT

A. Within 30 days of the date of entry of this Decree the Defendant shall designate a duly authorized representative whose responsibility shall be to oversee the Defendant's program for construction of the interim and alternative sludge management facilities and to file the reports required by this Decree. ++EP++

Page 10

B. Such representative shall have, at a minimum, the following responsibilities:

(1) facilitating the coordination of the Defendant's activities among its various departments and agencies in order to expedite and facilitate compliance with the terms of this Decree;

(2) attending quarterly progress meetings (as described in paragraph V.E above) among the parties or designating an acceptable representative to do so; and

(3) timely filing all reports required by this Decree.

VII. STIPULATED PENALTIES

The amounts set forth herein shall be the stipulated civil penalties under the Act and the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for the following specifically enumerated violations of paragraphs IV and V.

A. If the Defendant fails to comply with the specified deadlines and requirements of paragraph IV of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Non-compliance Violation or Violation Per Day 1-30 $ 2,000 31-60 $ 5,000 Beyond 60 Days $10,000 ++EP++ Page 11

Payments shall commence within thirty days of demand and shall become due and payable monthly thereafter.

B. If the Defendant fails to comply with any applicable requirements of paragraph V of this Decree, the Defendant shall pay stipulated penalties in the following amounts for each day of each and every violation of said requirements:

Days of Penalty Noncompliance Violation or Violation Per Day 1-30 $100 31-60 $200 Beyond 60 Days $500

Payments shall commence not later than thirty days from the date of the violation and shall become due and payable monthly thereafter.

C. The stipulated penalties set forth in subparagraphs A and B above shall begin to accrue on the day that performance is due or the non-compliance occurs, and shall continue to accrue through the final day of correction of the non-compliance. Each separate violation of this Decree shall constitute a separate penalty event, and nothing herein shall prevent the simultaneous accrual of separate penalties for separate violations of this Decree. In the event that stipulated penalties are payable to the plaintiffs under this Decree and subject to subparagraph D and E, herein, fifty (50) percent of such penalty shall be paid to the United States and fifty (50) ++EP++ percent of such penalty shall be paid to the State.

Page 12

Penalties due to the United States shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the United States," to the United States Attorney for the District of New Jersey with a copy to EPA and to New Jersey DEP. Penalties due to the State shall be paid by tendering a check in the appropriate sum, payable to "Treasurer of the State of New Jersey," to the New Jersey Department of Environmental Protection, Bureau of Revenue, CN 402, Trenton, New Jersey 08625 with a copy to EPA. Interest shall accrue on any stipulated penalty not paid when due at the rate established by the Department of the Treasury under 31 U.S.C. Section 3717.

D. 1. Stipulated penalties for failure to meet milestone events for its interim measures (schedule elements IV.C.) shall be forgiven if the Defendant ceases ocean disposal of all of its sewage sludge by March 17, 1991, provided that Defendant has paid in the time frames provided for herein, all amounts demanded for alleged violations of those provisions of the Decree into an escrow account acceptable to the Court and to the Plaintiffs. If the Defendant for any reason fails to pay into escrow any amounts demanded, either pending adjudication of the claimed noncompliance or pending its ceasing of ocean disposal on or before March 17, 1991, this forgiveness provision shall be of no effect and such stipulated penalties as are due and owing because of Defendant's failure to meet an earlier milestone event shall be paid to the Plaintiffs. The interest ++EP++

earned on stipulated penalties paid into escrow shall be paid over to whichever party is entitled to the principal.

Page 13

2. Except for stipulated penalties resulting from Defendant's failure to comply with the milestone event set forth in paragraph IV.B. 11, any stipulated penalties incurred by Defendant for failure to achieve any other milestone date in the schedules set forth in paragraph IV.B shall be forgiven upon the Defendant's timely achievement of the next subsequent milestone date in that schedule, provided that the conditions of this paragraph are met. Such stipulated penalties shall be paid within thirty days of demand by EPA or the State by tendering a check in the appropriate sum to the agent of an escrow account to be established by the Defendant. If Defendant thereafter demonstrates compliance with the next subsequent milestone event set forth in the schedule, then all stipulated penalties paid and held in escrow for violation of the preceding missed milestone event shall be returned to the Defendant. If, however, the Defendant fails to comply with the next subsequent milestone event set forth in the schedule, then the escrow agent shall pay such amounts of the escrow account for that schedule, including all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph. Nothing contained herein shall relieve the Defendant of any obligation to pay any stipulated penalties hereunder that the Defendant fails to pay into the ++EP++

escrow account or which the escrow agent fails to pay to the United States and the State.

Page 14

E. In the event that Defendant claims that a Force Majeure event, as defined in paragraph XI of this Decree has occurred such that no stipulated penalty is due for a missed milestone date, Defendant shall pay the stipulated penalty into an escrow account and such payment shall be held by the escrow agent pending resolution of the Defendant's claim of Force Majeure pursuant to paragraphs XI and XII. If it is determined that no stipulated penalty is due, then all stipulated penalties paid and held in escrow for the violation of the milestone dates at issue shall be returned to the Defendant promptly. If, however, it is determined that the stipulated penalty is due because the delay was not caused by a Force Majeure event, then the escrow agent shall pay such amounts of the principal and interest that are not entitled to further escrow pursuant to subparagraph D, herein, and all interest earned thereon, to the "Treasurer of the United States" and the "Treasurer of the State of New Jersey" in accordance with this paragraph.

F. In addition to the stipulated penalties set forth above and the fees and other statutory assessments established by the Ban Act: (1) the civil penalties and other relief provided by the MPRSA at 33 U.S.C. $1415 for violations of the Act for which stipulated penalties are not provided for herein, for violations of regulations issued thereunder, for violations of permits ++EP++

issued thereunder, and for violations of this Decree for which stipulated penalties are not provided for herein, shall apply and remain in effect; and (2) the civil penalties and civil administrative penalties and other relief provided by the New Jersey Water Pollution Control Act, including the New Jersey Ban Act, for violations of the Acts, for violations of regulations promulgated pursuant thereto, and for violations of permits issued pursuant thereto, for which stipulated penalties are not provided for herein, shall apply and remain in effect.

Page 15

Notwithstanding any other provision of this Decree, New Jersey specifically reserves the right to seek injunctive relief and the maximum penalties pursuant to the New Jersey Water Pollution Control Act, including the New Jersey Ban Act for failure to cease ocean dumping of sewage sludge by March 17, 1991.

G. In the event of failure to pay stipulated penalties, as set out above, this matter may be referred to the United States Attorney and the State Attorney General for collection. Defendant shall be liable for plaintiffs' post-demand expenses, including attorney's fees, in such collection action.

VIII. STATUTORY ASSESSMENTS AND ESCROW REQUIREMENTS

A. In satisfaction of Defendant's obligations under 33 U.S.C. 1414b(b) (1) and 1414b(d) (1), the Defendant shall pay the amounts set forth herein for each day for the sewage sludge it disposes of in the ocean. Such payments are separate and apart from any penalties the Defendant may be liable for under ++EP++ paragraph VII.

Page 16

The quantity of dry tons shall be based upon the monthly average of percent solids for the sludge transported for the purpose of ocean disposal or disposed of in the ocean. Penalties for disposing of sewage sludge or transporting sewage sludge for the purpose of disposing of it in the ocean shall be calculated for any such disposal after December 31, 1991, as set out in Section 1414b(d) (1) of the MPRSA. Such penalties are mandatory and independent of any civil penalties assessed or collected pursuant to Section 105 of the MPRSA and of any stipulated penalties assessed or collected pursuant to this Decree.

For the purpose of determining the applicable per-dry-ton fee or penalty, the date and time of initiation of transportation for the purpose of ocean disposal, to be reported as the time of loading sludge onto a barge (as required by condition 30.b. of the draft final permit), shall be used.

B. Payments of amounts assessed under paragraph VIII shall be made no later than on a quarterly basis, on the last day of the month following the end of a calendar quarter, if necessary should previous cumulative expenditures from the trust account described in C, below, be less than amounts due. The first payment, for sewage sludge dumped or for dumping initiated during the calendar quarter ending September 30, 1989 shall be made by October 31, 1989. For the purpose of determining the calendar quarter in which sludge was dumped, the date and time of initiation of transportation for the purpose of ocean disposal as ++EP++ the time of loading of sludge onto a barge (to be reported as required by condition 30.b of the draft final permit) shall be used.

Page 17

C. The Defendant shall maintain a trust account, as approved by EPA, pursuant to 33 U.S.C. 1414b(e) in the form attached to this Decree for the payment and use of that portion of the statutory assessments and penalties established by the Ban Act that are to be deposited in this trust account. Nothing herein is intended to preclude defendants from utilizing funds raised for facilities to enable them to cease ocean disposal of sewage sludge to satisfy their escrow obligations under this Decree.

D. Defendant shall pay fees and penalties in accordance with 33 U. S.C. Sub-Section 1414b(b)(2)(c) and 1414b(d)(2)(c)(i) into the Clean Oceans Fund established under 33 U.S.C. 1414b(c)(5) and the Water Pollution Control Revolving Fund established under Title VI of the Federal Water Pollution Control Act. In the event that the State has not established a Clean Oceans Funds or water pollution control revolving fund by February 28, 1990, fees and penalties required to be paid to the Clean Oceans Fund or revolving fund by Defendant shall be paid to EPA pursuant to 33 U.S.C. 1414b(b)(5).

E. In satisfaction of Defendant's obligations under 33 U.S.C. Sub-Section1414b(b)(2) and 1414b(d)(2), the following amounts shall be paid by Defendant as set forth below to the following recipients for each dry ton of sewage sludge dumped in the ocean: ++EP++

Page 18 Payments Per Dry Ton Dumped Recipients State Water Year in Clean Pollution Which Sludge Trust Oceans Control Re- Was Dumped EPA Account Fund/1/ volving Fund/1/ 1989 $15.00 $85.00 -- -- 1990 15.00 127.50 $3.75 $3.75 1991 15.00 170.00 7.50 7.50

((/1/ If established; if not established, to EPA pursuant to paragraph VIII.D.))

After December 31, 1991, payment and distribution of penalties shall be computed and paid in accordance with 33 U.S.C. 1414b(d)(2).

F. Amounts paid to EPA under paragraph VIII.E shall be paid by a check made payable to the "Treasurer of the United States," and delivered by certified mail, return receipt requested, to EPA. Statutory assessments paid to the Clean Oceans Fund, state water pollution control revolving fund, or State shall be paid by a check made payable to the Treasurer, State of New Jersey, and delivered by certified mail, return receipt requested, to the State. Amounts paid into the trust account shall be paid by a check made payable to the trustee for said account. Whenever any payment is due under this Decree, if such payment is not received on or before the day on which payment is to be made pursuant to paragraph VIII.B., interest on ++EP++

the amount due will be assessed without further demand against Defendant at the annual rate established by the Secretary of the Treasury pursuant to 31 U.S.C. Section 3717, on the overdue amount from the day on which it was due through the date of payment.

Page 19

Failure to pay the amounts in full according to the above provisions will result in referral of this matter to the United States Attorney and the State Attorney General for collection. Interest on late payments shall be paid to EPA for untimely payments to EPA or the Defendant's trust account and to the State for untimely payments to it or to its revolving fund or Clean Oceans Fund. Interest on late payments shall be deposited in the U.S. Treasury or State Treasury as appropriate as general funds. Defendant shall be liable for Plaintiffs' necessary and reasonable expenses, including attorneys' fees, in such collection action.

G. In the event of Defendant's failure to make full payment to the trust account in accordance with paragraph VIII of this Decree within thirty days of the date on which it was due or Defendant's failure to use amounts withdrawn or received from the account in accordance with 33 U.S.C. 1414b(e) and this Decree, EPA shall provide notice to the Defendant and an opportunity for informal dispute resolution. If, thereafter, EPA finds that such a failure has occurred, it may direct the trustee of the trust account to pay the balance of the amounts in the trust account to the State for use in accordance with 33 U.S.C. 1414b(e)(2)(C). Pending final resolution of any district court challenge, the trustee shall continue to hold the funds in the trust account. ++EP++

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H. Amounts paid to the trust account, the State, the Clean Oceans Fund, or the state water pollution control revolving fund shall be used subject to the restrictions of 33 U.S.C. Sub-Section 1414b(c)(5), (e) and (f). The Defendant shall conduct audits on an annual basis to establish that such statutory assessments and penalties were properly deposited and paid out. The Defendant shall utilize the services of an auditor to conduct separate audits, on an annual basis of Defendant's expenditures from the trust account and from funds provided to it from the Clean Oceans Fund, to demonstrate compliance with 33 U.S.C. 1414b( c)(5) and (e). Costs incurred by the Defendant pursuant to this Decree and paid from the trust account and from funds provided to Defendant from the Clean Oceans Fund shall be necessary and reasonable, and allocable to the projects allowed by 33 U.S.C. 1414b(c)(5) and (e). The Defendant may look to the applicable cost principles of OMB Circular A-87 (46 Federal Register 9548 (1981)) for guidance in determining allowable costs. Such audit reports required of the Defendant shall be submitted to EPA and the State within 90 days after the end of each calendar year.

I. The Defendant shall submit to the EPA and the State, a scope of work for each project for which it expects to seek to withdraw funds from the trust account in the following six-month period. The first report shall be due by August 30, 1989 and shall cover the period from August 15, 1989 through December 31, 1989. Subsequent submissions shall be due 60 days ++EP++

prior to commencement of the next six-month period (e.g., October 30, 1989, for the period of January 1 through June 30, 1990).

Page 21

Each scope of work will consist of a description of the major activities to be funded in each project, the required level of funding for each such activity and a cumulative six-month payment schedule based upon projected costs to be incurred.

J. EPA will approve or disapprove the projected work and estimated costs for the major activities for the following six month period and will notify the trustee of the trust account and the State of EPA's approval or disapproval of the projected work and estimated cost and will provide the trustee with a list of the approved activities, funding levels and associated payment schedule. If EPA fails to act on the Defendant's proposed scope of work and payment schedule within 60 days of its receipt, the Defendant may submit the scope of work and payment schedule to the Trustee together with a certification that EPA has failed to disapprove use of the trust account as required in 33 U. S.C. 1414b(e)(2)(A).

K. The Defendant may request funds from the Trustee for immediate cash disbursements based upon the approved payment schedule costs incurred. The Trustee will authorize the expenditure of funds in accordance with the scope of work and approved payment schedule. If the Defendant anticipates that funding for the authorized activities will exceed the amounts in the approved scope of work, the Defendant may seek approval for ++EP++ the release from its trust account from EPA for such additional needs.

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L. This Decree specifies only the minimum amounts that must be placed in the trust account. Nothing in this Decree is intended to prevent the Defendant from depositing into the trust account, as a matter of administrative convenience, sums greater than those specified herein, or to preclude them from depositing additional amounts for any lawful purpose, provided that the minimum amounts required to be in such account are at all times present. Notwithstanding the fact that the Defendant may have deposited in the Trust Fund sums greater than the statutorily prescribed amounts, for its convenience or for any other good reason, the Plaintiffs' interest in the Trust Fund is limited to the amounts established by the Ban Act and as set out herein.

IX. NOTIFICATIONS

A. Except as specified otherwise, when written notification to or communication with the United States or the State is required by the terms of this Decree or when payment of a statutory assessment or penalty is to be made, it shall be sent by certified mail, return receipt requested, and addressed as follows:

As to the United States of America:

United States Attorney's Office

Federal Building

970 Broad Street

Newark, New Jersey 07102

United States Department of Justice

Land and Natural Resources Division

10th & Constitution Ave., N.W. ++EP++

Page 23

Washington, D.C. 20530

Attn: Chief, Environmental Enforcement Section

As to the Environmental Protection Agency:

U.S. Environmental Protection Agency

Region II

Office of Regional Counsel

26 Federal Plaza

New York, New York 10278

U.S. Environmental Protection Agency

Financial Management Branch, Policy and

Management Diviion

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

Water Management Division

U.S. Environmental Protection Agency

26 Federal Plaza

New York, New York 10278

As to State:

Chief, Environmental Protection Section

Division of Law

CN 112

Justice Hughes Complex

Trenton, New Jersey 08625

Director

Division of Water Resources

Department of Environmental Protection

CN 029

401 E. State Street

Trenton, New Jersey 08625

As to Defendant:

Larry J. McClure

Executive Director

Foot of Mehrhof Road

Little Ferry, New Jersey 07643

Notifications to or communications with the United States, EPA or the State shall be deemed submitted on the date ++EP++ they are tele-faxed or postmarked and sent by certified mail, return receipt requested, whichever occurs later.

Page 24

B. Reports required to be submitted pursuant to paragraph V shall be signed by the responsible official of the Defendant designated pursuant to paragraph VI and shall include a certification under penalty of law that the responsible official is in a position to know the facts contained in the report, has made sufficient inquiry to determine the accuracy of the information contained in the accuracy of the information contained inthe submission and that he or she certifies that to the best of his knowledge the information contained in or accompanying the submission is true, accurate and complete. (See 40 C. F.R 122.22 for form of certification.)

X. MODIFICATIONS

Except as provided for herein, there shall be no modification of this Decree without written approval of all of the parties to this Decree, subject to the approval of the Court, or Order of the Court. Nothing herein shall be construed to limit any party's rights pursuant to Rule 60(b) of the Federal Rules of Civil Procedure.

XI. FORCE MAJEURE

A. A Force Majeure event is any event that is beyond the control and without the fault of the Defendants and/or its contractors and which causes a delay in implementing any of the measures required by this Decree. Such Force Majeure events may be occasioned by, among other things, Act of God; contractor or supplier default; failure of a federal or state regulatory agency ++EP++

to issue any necessary permit or approval in a timely fashion (where, in accordance with all applicable laws and regulations, the Defendant timely submitted an application, has done all it can do to ensure that such application is complete, has provided necessary supporting information and is otherwise entitled to such permit or approval); inability to secure responsible bids; or a judical injunction (where such injunction is issued by a court of competent jurisdiction directed against work actually being performed in furtherance of construction of sludge treatment and disposal facilities and provided that the Defendant has exercised due diligence and best efforts in seeking removal to this court and in resisting such injunction, including appeals, and further provided that the Defendant has acted in accordance with applicable statutes and regulations).

Page 25

If a Force Majeure event occurs, Defendant shall be entitled to a modification of the schedule milestones to the extent that such event was beyond the control of the Defendant. The Defendant bears the burden of establishing that the event was beyond its control and of demonstrating the amount of delay that is necessary because of the Force Majeure event. As a condition precedent to obtaining any relief under this provision, Defendant shall notify the Court and all the parties in writing that a Force Majeure event has occurred no later than 90 days after the date Defendant knew or should have known of the occurence of any Force Majeure event. ++EP++

Page 26

B. The notice to EPA and the State, required above, shall include, to the extent such information is available at the time of such notification:

1. The anticipated length of time of the delay;

2. The cause of the Force Majeure event;

3. Measures taken to minimize the delay including a time table for implementation of any such measures;

4. Proposed date by which subsequent schedule milestones will be acheived; and

5. Activities that can be taken to minimize the impact of the Force Majeure event on the overall schedule.

C. If all the parties agree that a failure to comply with any requirement of this Decree, including a schedule milestone in paragraph IV, was caused by a force majeure event, the parties shall seek an amendment to this Decree containing such proposed modifications, including revised schedule milestones as may be necessary, and no stipulated penalties shall be incurred. If the parties agree that an extension is necessary, the schedule of milestone dates under paragraph IV shall be extended for the period of time caused by the Force Majeure event. However, it is the State's intention to oppose any extension of the disposal of sludge beyond March 16, 1991 because it is the State's position that it has no authority to extend the statutorily imposed deadline. In the event that revision of the schedule milestones is necessary, the Defendant ++EP++

agrees to make every effort to ensure that the milestone events set forth in paragraph IV are not extended.

Page 27

D. If the parties cannot agree that a failure to acheive milestone dates was beyond the control of the Defendant, the Defendant may, within 90 days following the missed milestone event, apply to the Court for a determination as to whether all or part of the delay was excusable due to a Force Majeure event.

E. If, for any reason, the Defendant fails to acheive any schedule milestone established in paragraph IV and the parties cannot agree that the remainder of the schedule milestones will be affected, or how they will be affected, then the Defendant may, within 90 days following the missed schedule milestone, petition the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule milestones as established in paragraph IV. Whenever a milestone is missed, the Defendant shall exercise its best efforts to recoup all lost time, including, where appropriate, the payment of additional costs for overtime, double shifts or additional contractors or consultants.

XII. DISPUTE RESOLUTION

A. Any dispute between two or more parties to this Decree which arises under this Decree shall in the first instance be the subject of informal negotiations between the parties to the dispute for a period of up to twenty (20) days from the time notice of the dispute is given. Both the EPA and the State shall ++EP++ be considered parties to any dispute.

Page 28

The period for negotiations may be extended by agreement of the parties to the dispute.

B. In the event that the parties cannot resolve the dispute by informal negotiations under the preceding paragraph, then the position advanced by EPA and the State, after consultation, will be considered binding unless, within fifteen (15) days after the end of the informal negotiations period, the Defendant files a petition with this Court setting forth the matter in dispute, the efforts of the parties to resolve it, and the relief requested which may include a request that a master be appointed by the court. Any party to the dispute may present a disputed matter to the Court before the end of the negotiations period if the matter concerns stipulated penalties or otherwise requires early resolution. The dispute resolution procedures of this paragraph shall be the exclusive mechanism to resolve disputes arising under this Decree and in connection with the draft final permit incorporated herein.

If, for any reason, the Defendant fails to achieve any milestone date(s) established in paragraph IV and the parties cannot agree that the remainder of the schedule will be affected, or how it will be affected, and the Defendant petitions the Court for a determination concerning whether the failure to achieve the milestone date(s) requires a revision of all or part of the remainder of the schedule for such project as extablished in this Decree, in the interim the Defendant shall exercise its best ++EP++ efforts to recoup all lost time.

Page 29

In any proceeding convened under this paragraph, the Defendant shall bear the burden of proof to demonstrate that a change in the schedule is required. The Court shall determine whether and to what extent future milestones will be affected and, if the Court so finds, shall direct that appropriate schedules be submitted. Prior to the recommendation of any schedule further extending the end dates for completion of the tasks enumerated in paragraph IV, the Defendant shall demonstrate to the Court that alternative methods to recoup time lost in the delays have been explored and that no practicable means exist to do so.

C. The filing of a petition asking the Court to resolve a dispute shall not of itself extend or postpone any obligation of the Defendant under this Decree, provided further that nothing herein shall prevent an affected party from applying to the Court, upon notice to all parties, for a stay of relief authorized or directed by this Decree.

D. In proceedings on any dispute regarding a delay in performance or other noncompliance, the Defendant shall have the burdens of proving (1) that the delay or other noncompliance is or was caused by circumstances beyond the Defendant's control and without fault of the Defendant, and (2) that the amount of any additional time requested is necessary to compensate for such circumstances.

XIII. COMPLIANCE WITH OTHER LAWS ++EP++ Page 30

A. Except as otherwise provided in this Decree, the Defendant shall not be relieved of its responsibility to comply with any other Federal, State, or local law or regulation.

B. This Decree constitutes an agreement pursuant to the Ban Act, 33 U.S.C. 1414b(c)(3) and satisfies the requirements of 33 U.S.C. 1414b( a)(1)(A)(i). A violation of this Decree is a violation of the MPRSA. The United States and the State do not, by their entry into this Decree, warrant or aver in any manner that the Defendant's complete compliance with this Decree will result in compliance with the Act, the State Ban Act or any other Federal or State law. Notwithstanding the EPA's and the State's review of any plans formulated by the Defendant pursuant to this Decree, Defendant is sloley responsible for compliance with all Federal and State laws and regulations. The United States and State do not waive any rights or remedies available to them for any violation by Defendant of Federal or State laws or regulations occuring after termination of this Decree. This Decree in no way affects or relieves the Defendant of its responsibility to comply with any Federal or State law or regulation. Nothing in the Decree shall be construed to limit the Plaintiffs' right to seek contempt sanctions for violations of this Decree or to seek penalties or injunctive relief under any Federal or State statue or regulation for violations for which stipulated penalties are not provided for by this Decree.

C. The Defendant, EPA and the State will take all possible steps to expedite, to the extent practicable, submission ++EP++ and review, as appropriate, of any permits, applications or approvals needed for completion of the interim measures and longterm alternative system(s), setforth herein.

Page 31 XIV. RETENTION OF JURISDICTION

This Court shall retain jurisdiction to enforce the terms and conditions of this Decree and to resolve disputes arising hereunder as may be necessary or appropriate for its implementation.

XV. TERMINATION

This Decree shall terminate when the Defendant has complied with all applicable requirements of this Decree and the United States and the State have so certified.

The parties consent to entry of this Decree without further notice.

Respectfully submitted,

/s/

DONALD A. CARR

Acting Assistant Attorney General

Land and Natural Resources

Division

United States Department of

Justice

/s/ Bruce C. Buckheit

BRUCE C. BUCKHEIT

Senior Counsel

Environmental Enforcement Section

Land and Natural Resources

Division

United States Department of

Justice

Washington, D.C. 20530 ++EP++

Page 32

SAMUEL A. ALITO, JR.

United States Attorney

for the District of New Jersey

By: /s/ Vincent Gentile

VINCENT GENTILE

Assistant United States Attorney

Federal Building (Rm. 502)

970 Broad Street

Newark, New Jersey 07102 ++EP++

Page 33

FOR THE ENVIRONMENTAL PROTECTION

AGENCY

/s/

WILLIAM J. MUSZYNSKI

Acting Regional Administrator

U.S. Environmental Protection

Agency

Region II

/s/

EDWARD E. REICH

Acting Assistant Administrator

for Enforcement and

Compliance Monitoring