1. TO LITIGATE, OR NOT TO LITIGATE
Palm Springs February 8, 2018

2. Panelists
Kurt Berchtold, Retired Executive Officer, Santa Ana Regional Water Quality Control Board
Steve Elie, President, Inland Empire Utilities Agency
Curtis Paxton, General Manager/CEO, Chino Basin Desalter Authority
Moderator: Greg Newmark, Principal, Meyers Nave

3. Problems with Groundwater Cleanups

4. Problems with Groundwater Cleanups, cont.

5. South Archibald Plume First Identified in 1986 by MWD sampling
Regional Board began source investigation
Located Between 60 Freeway and Kimball Avenue in Ontario
Trichloroethylene (TCE) Detected in Private Wells
Toxic Volatile Organic Compound identified as carcinogenic by EPA
TCE used as Metals Degreaser and Cleaning Solvent from 1940s – 1970s

6. South Archibald Plume, cont.
1986 – TCE first detected in area
2005 – Draft CAOs issued to Companies and United States
2007 – Replacement water supplied to affected residences
2012 – Draft CAO issued to RP-1 Agencies

7. Regulator’s Perspective
Concerns that problem lingered without resolution
Regional Board experience at other groundwater contamination sites

8. Regulator’s Perspective, cont.
What type of regulatory response?
Draft Cleanup and Abatement Orders

9. IEUA Perspective Many other sites resulted in protracted litigation
Commitment to Chino Basin agricultural community affected by TCE plume

10. IEUA Perspective, cont. IEUA committed to try a different approach
Objective was to solve the regional groundwater problem irrespective of liability

11. IEUA Perspective, cont.
IEUA was attempting to avoid situations like this:

12. Regulator Perspective
All parties took a positive approach to developing a solution to the groundwater problem
The Regional Board actively participated in the process at key points to apply leverage where needed

13. The Solution Groundwater Pumping within Affected Area
Move planned CDA well north
Maximize TCE removal
Pipeline Installation
Convey groundwater to Desalter II
Chino Desalter II TCE Treatment
Modify plant to remove TCE

14. Many Parties and Many Negotiations

15. Work Party/Partner Perspective
Santa Ana River Water Company

16. Work Party/Partner Perspective, cont.
Extensive coordination with CDA TAC
RP-1 Parties funded independent consultant evaluation and CEQA compliance
Significance of Trust and Relationships

17. Accessing Grant Funding
IEUA has a long history of obtaining grant funding
Confident grant funding could be accessed to fund project
Remedy emphasized capital investment to achieve minimal future O&M costs
Funding Obtained From:
Companies/U.S. Department of Defense
Grant Funding – USBR and Prop 1
City of Ontario – Contingency funding
IEUA responsible for all remaining costs

18. Innovative Administrative Settlement
Standard contractual settlement between parties
Stipulated Settlement and CAO with Regional Board facilitated resolution
Regional Board confident remedy would work
Parties received releases and covenants not to sue from the Regional Board
Parties also got contribution protection
In exchange for helping to solve the problem, parties got an uncommon degree of certainty

19. Innovative Administrative Settlement, cont.
A decades-old groundwater contamination problem was solved without anyone filing a lawsuit!

20. To Litigate, or Not To Litigate