roc (tap.23

DATE: 7/29/91RECORD OF COMMUNICATION

TIME: 10 :00 am TYPE OFCOMMUNICATION: Phone Call

TOs Stan Hitt, Renee' Holmes, FileFROM: Ursula R. Lennox, RPMSUBJECT: EPA's Condemnation Authority involving the Koppers BuyoutSUMMARY OF COMMUNICATIONOn this day (7/29/91) , Mr. Dominic Frinzi of the Office of GeneralCounsel called the RPM to inform her that he will performing Ms.Carla Mangers job for the time being (Ms. Kangers passed awayduring the Memorial Holidays this year). Ms. Mangers1responsibilities involved the purchase of real estate and spacemanagement. Mr. Frinzi stated that the COE called to query whethercondemnation authority exists for the Koppers1 buyout. It wasexpressed by Mr. Frinzi that HQs delegates condemnation authoritythrough a Authorizing letter, which is issued after the SiteAcquisition Strategy (which the COE' s develop), is received,reviewed, and approved by OERR, GSWER, OGC, and through theFacilities and Management and Services Division who completes theacquisition. He expressed that the language in the Bill instructsEPA to purchase the property, this implies through voluntarymeasures or by condemnation. He will forward a memo to the Regionto this effect by Wednesday (7/31/91 ) .

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Mr. Frinz i ' s memo was received on 7/31/91 , and is attached.Frinzi also forwarded a copy to the COE-

Mr.

If additional information is needed, Mr. Frinzi may be reached atFTS: 3 8 2 - 6 3 7 2 .CONCLUSIONS, ACTION TAKEN OR REQUIREDProvide counsel with this information.INFORMATION COPIES TO: See Above

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FACSIMt l g REQUEST AMD COVER SHEETTO

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MEMO FOR RECORD TO URSULA LENNOX REGION VI July 30, 1991Subject: Real Property Issues at the Koppers Superfund Site, XX

This memorandum addresses issues raised in our telephoneconversation of 29 July. The first part, addresses the issue ofEPA's authority to condemn real property interests in connectionwith the Koppers Remedial Action. The remainder covers an overviewof the real property acquisition process.CONDEMNATION AUTHORITY

Ther* appears to be some confusion over EPA's authority toacquire real property by condemnation. This confusion apparentlycenters on the language contained in the Suparfund Appropriationscommittee notes, where $ 5 , 0 0 0 , 0 0 0 . 0 0 was set aside, "for relocationassistance for residents and the purchase of homes located on theKoppers Texarcana Superfund Si te , . . " Based on our 29 Julytelephone conversation, 1 got the impression that Regional Counselwas concerned chie language somehow restricted EPA 1 s ability toacquire real property by eminent domain, sinca the language did notspecifically mention condemnation power.

Section 104 ( j ) of CERCLA clearly establishes EPA's authorityto acquire real property by purchase, lease, condemnation.- donationor otherwise, in connection with Superfund Remedial Actions.Assuming the Appropriations Committee language supersedes Section104 (j) of CERCLA, the absence of the terra "condemnation" would notprevent EPA from acquiring real property by eminent domain on theKoppers site. According to 40 U . S . C . Section 2 5 7 , the grant cfauthority to acquire real property carries with it th« authorityto condemn. Additionally, case law on this issue is wel 1established. (I have attached a copy uf The United states vs.16 .92. Acres of Land, 670 F .2d 1369 ( 1 982 ) , which is representativeof the case law holding that the grant of authority to acquire rfialproperty, includes the power to acquire by eminent domain.)Therefore, I believe you have sufficient authority to condemninterests in real property, should the need arice.

I'm not quite convinced that the Committee notes represent aseparate authority to acquire real property outsid« of CERCLA.Since you would have authority to condemn under cither CERCLA, orthe language contained in the Committee notes, the issue of thenotes representing a separate authority would not .-natter withrespect to condemnation power. However, I would keep in mind thatthe notes represent an appropriation of funds. Your authoritywould still appear to come from CERCLA and the NCP, with respectto carrying out Remedial Actions, with respect to real property,Section 104 ' j ) of CERCLA would be followed aa the mecnanism foracquiring real property needed for remedial actions. Tne Committeenotes seem to only direct the spending of funds for a portion ofthe remedial action.

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In the final analysis, the provision of funds for relocationassistance and real property acquisition in the AppropriationCommittee notes, should not affect your ability to acquire realproperty interests by condemnation. Ac noted above, even if theCommittee notes act ae a separate authorization, you would stillhave condemnation authority pursuant to 40 U.s . c . Section 257, andrelevant case law.

THE REAL ESTESection 104 (j) of CERCLA, authorizes the President to acquireby purchase, lease, condemnation, donation, or otherwise, any realproperty or any interest in real property needed to conduct aremedial action. This authority waa redelegated to £PA throughExecutive order 12580 in January, 1987. This authority has beenredelegated further, pursuant to the EPA Delegation Manual,Delegation 1-4-B entitled Real Property and Space. According toDelegation 1-4-B, the Director, Facilities and Support ServicesDivision (FMSD), at Headquarters EPA, is authorized to acquire ordispose of real property interests on behalf of EPA, which includereal property acquired and disposed of in connection with aSuperfund remedial action.A real property interest can arise when EPA leases property,or purchases a fee or lesser interest, such as an easement. Evenin the case where a landowner donates real property to EPA, thiswould fall within FMSD's acquisition authority.The disposal of real property also falls within FMSD'eauthority. Typically, I see this issue surfacing at CERCLA

remedial actions, where certain real property interests are turnedover to the state when it assumes GiM for a project.

FMSD provides reaj estate support to both the remedial andremoval action programs. Real estate support may include surveys,title work, appraisals, negotiations for purchase, «md closing,Some cases involve condemnation of a real property interest, insuch cases, a Condemnation Assembly must be prepared andtransmitted to the Department of Justice for filing of aDeclaration of Taking.Additionally, FMSD provides support in relocating personadisplaced from their homes and businesses as a rosult of a

Superfund Remedial or Removal Action. As the lead office forimplementing relocations, FMSD alco provides guidance with respectto relocation issues, to ensure compliance with relevant laws andregulations governing relocation assistance.

_ — ••- — v646.3

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Since FMSD does not have its own dedicated real estate assets,other agencies are requested to provide real estate support.Currently, FMSD uses the U .S . Bureau of Reclamation (USBR) and theU .S . Army Corps of Engineers (USAGE) . The decision to use aparticular real estate support agency depends on many factors whichare determined by FMSD.

Funding for the real estate support agenov ;s provided throughan Inter-agency agreement ( tAG) . This IAG cent*.-** <a general scopeof work; however, this scope of work ahould not be confused withthe real estate directive issued by FMSD, which provides theauthority to acquire or dispose of real property interests. Asnoted below, the directive 10 usually issued after DSWEP concurrsin the Region's acquisition plan.Typically, in a remedial action, real property interests areidentified at the Regional level by the Regional Project Manager

(RPM) , with the assistance of FMSD, and the real estate supportagencies noted above. Requests to acquire real property are thensent to HQ EPA for review by OSWER and OGC. On obtaining approvalfrom OSWER and OGC, FMSD is charged with acquiring any realproperty interests identified by the RPM and approved by OSWER andOGC. If a real estate support agency is used, FMSD will normallysend a directive authorizing the support agency to acquire the realproperty interests on behalf of EPA. In the rare instance EPAacquires the real property interests on its own, th»? Director ofFMSD would accept all offers to sell to EPA.

x~- Removal actions are quite different, since the On-ScenaCoordinators (OSCe) have substantially less lead-time than the/ RPMs. Normally, a removal action requires temporary relocation ofi pereons from the affected site. However, there are instances where\real property interests must be acquired, such as in the case of/leasing a staging area. In such cases, the oscs should work with\th« designated real estate support agency for the project (USBR or'USAGE) to obtain any needed real estate assistance. FMSD should/a l so ba notified of the ner.d to acquire a real property interest,/ so a directive authorizing the acquisition can be transmitted to/ the appropriate real est^t^ support agency. If the OSC neuds to

/ acquire a real property interest, and there are no rea] estateI support pereons assigned to the project, the OSC should contact\FMSD to request real estate support.With respect to disposal of a real property interest, theDirector of FMSD would sign over any deeds transferring ownershipof the property, FMSD would coordinate with the appropriate officeof Regional Counsel (ORC) to ensure the sufficiency of any deeds

with respect to state and local laws. Therefore, it is importantto contact FMSD and ORC as soon as you anticipate the need todispose of a real property interest.

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I hope this memo answers your questions on EPA's condemnationauthority at the Koppers site, as well as the real estateacquisition process. If you have any questions or comments, orneed additional information, please feel free to contact me at FTS3 S 2 - 2 0 2 2 . I look forward to working with you in the future.Sincerely,

1-- l-Doainic H. Frinzi, Jr.Attch. 2 CM

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Pl'BLIC BUILDING*. ETC Cfe.. .§ 256. Repealed, Pub.L. 91-393, | 2. S«pt. 1, 1970, 84 *u835

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»^*§ 257. Condemnation of r«aj<y for 3l(M And other u««*In every case m which she Secretary of ihe Treasury or any other o/flctof ihe Government hai been, or hereafter %hall be. authorised ro proifUfreal esiatc for the erect ion of a public building or for other pubiic uw^Uft-may acqu'1-* ihe wimc for ihe L'nited Siaici by condemnation, un^fcjudicial pr.. ;ss. whenever in his opinion it u necessary t>r «dvant*geou*jtihe Government to do so, and the Attorney Genera/ of the United Stalerupon every Application of the Secretary of the Treasury, under thi* aeciiorand section 258 uf this. uric, or such other officer, shall cause proceedingt-> be commenced for condemnation withm thirty days from receipt of theapplication at the Department of Just ice

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1372 670 FEDERAL REPORTER. 2d SERIESChecking Ruretu, inc.. 204 F-2d 770 (7thCir 1953). There, the authority of theGovernment to condemn property in orderto house a federal agency waa affirmed on:hc basis of 40 L'.S.C $ 267. Com men tingon the lack of ncccwity for specific autho-risation to condemn property in a procure-ment stAtutu. thifl Court itflUd.

As authority [haa) already been o<.n-fvrrud to procure real c*tau> for publicuse* by condemnation, it would seem to{he] quite unncecmry to embody in thi*Act specific aulhonty to acquire real «-Ute by condemnation proceedings. W«must uasjmc thai Control* had fullknowledge of the Act of Augim 1, 1888and of the interpretation that [ho*] beenplar<?d upon it by tho court*.

United Stales v. A.drcrtwng- Checking Bu-reau. Inc., supra, 204 F.2d at 772, quotingBarmrlr* v. Cnittd State «. 101 F2d 295,.297--9F (8th Cir S .J ) .

While donation, j>urrhit#«. or exchangemay he preferred method* of acquisition.they are not the oni> methods which thegovernment may emplny to acquire the ap-pellants' properties. There is nothing ineither [6 I' SO $ 460w -2 * or ila legislativehtsiory* in «uggest that the governmentdoc* not have the powt-r of condemnationWithout limiting language from C«>ngn?,iv.we must conclude that th« Secretary ofInterior ha* impficp. authority to condemnthe appt-llanU' properties

III(3) As a condition of government acqui-

sition of prvperty, Congress granted u> cer-*"' funds wi|A the cwiifni of the) donation -,r ••virnjos* 16 L1 S C,',». urnpfti«.s j-l(><1> 5rf */so IG

L ' SC 1 41 * > i > i <WO i ilioiton Saiional HislonAct'.

3. mf a^iH-i.'ar.ts argu* th*i ih* plain i^rttujKcof ;6 I ><_ 'j 460\*. 2, «ith MS utniutcft of <heword '-undcmnaiion. ' SU(t^c»U tfctil th<:ao\?ninierjt ITIJV actiinr? i.mil only bv t*s

Jorutmn. >r v<ji>jnt«r>'«•* no(f thai m !8 I. SCsptcifical!; rul«^t oui condemflaT *onr>t property junrd hy the Scat* of Wisconsin,

'hm-toy cr*jtmg «n i.iiylication that no suchfo? pnf«i« proparty

Lain privoto landowner* in the LdkcahoreJtrt-a the nght to retain a limited intcr«nt mtheir properly 16 L'.S.C. § 4&V-3 pro-vides in pertinent part:

(a) With the exception of nol more'han eighty acre* of land to be designatedwithin the lakwhore boundaries by theSecretary AS an administrative sil#, visi-tor center, and related facilities, u aoonu practicable, any owner or owners ofimproved property on the date of ita ac-<juitMt!on by the Secretary may, aa a con-dition of such acquisition, retain forthemselves and their successors or ajwigfiaa right of u«c and occupancy of ihe im-proved property f«.r noncommercial resi-dential purpose* for a definite term notu> «*c«vd twenty f;ve years, or, in lieuthcrr-of. for a term ending at the death ofthe -lU-ner, or tht 'ieath of his spouse,whichever w the later The owner shallc!cci rhc term to h« i-e«ervt(J. The Secre-usry shall pay to the owner the fair mar-ket value of the property on the date of-uoh Acquisition leu the fair market val-i« 'in such dflte of the nght retained bythe

(ci The term "improved property." a*'jaed ,n thu section, shall mean A dc-*achcd, noncommercial rcaidontiai dwell-ing. the construction of which was begunbefore January 1, 1987 (hereinafter re-ferred to as "dwelling"), together with jomuch of the land on which the dwelling a*iluated, the said land being in trie same

-I. bespit* 3pfH»Hann ir^umcm to lh^ confrarv,«»>. i\iif (he -listriri court find {hi. vgisumvehijiory and (he cotloquirs tna( took pine* &*-fart the Senate Suti\:u(imy(t^c to i>e n/ 'ittl#

in resolving :hi« iSfcur if anything.rtcords indieaf* thai it\e power of con-

demnation W4& view»d hv ih^ Sfrtait as .1 nee-eiNxt of litnrf jim»*iiion 5rr Apostle*aticn*t Ljtkfshort Heanngs on 5

778 Before l^e .?uhco/ii/ii on Parks and Recrea-tion of iht StnAtr CortuJi. on Intcnur *?H) Insu-lar Affairs. 30th Conp 'it S«s* 41

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1374 870 FEOERAi REPORTER 2d SERIESL'.S. 946. 97 SCt 1583, 5) I Bd.2d 794(1977). Sc-c Village v{ Belle Term v flo-ra**. 416 U S. !, 7-8. 94 S.Ct. 1536. 1*40, 39L.Ed.ai 797 ( 1974 )

This rationai-hajtis standard hti» been de*scribed as a relatively rclaxfd standard re-flecting an awareness that the drawing oflines thai create distinctions is peculiarly a

usk and an unavoidable oneBd. of Hettrcmcnt v Murgm,

427 U.S. 307, 314. W S.Ct 2562, 2567, 49L.fcd,2d 520 (1976). The pmhleim ofgovcrn.Tient arc practical ones and may ju*-tify. if they do not require, rough flccomnv*-dations—-illogical, it may !«. and unsoiont if-ic. Mctrofwlis Theatre Cf> v. City of Chica-go. 228 I' S 61. 6»-70, 33 S.Ct 44 1 , 443. 57L Ed, 730 ( 19 13 ) These accommodation* l»>the legislature will not be set a.«ide if &njstate of facia reasonably may fto justify them McGowen v336 I'.S 420. -126, 81 S.Ct 1 101 1105.LEd.2d 393 (1361)

8.The procedure that ailons certain land

owners to retain a hmiled interest in theircondemned property was described in Lake-short legislative history 93 "customary '«

recreation-oriented authorization*H.R.RcpN'o 91-1280. 9bt Cong. 2d S«s*. 6,rvfinnteu in [1970? I'. S Code Conjf i Ad.New* 3900. 3913- This procedure is known,and was referred to in the Senateon the L*ke3hore bill, as th« 'Tformula." ^w Apostle Island*Likeshore Hearing* on S 7?8 Before theSubfomm on Parks and Recreation of theSenate Comm on Interior and Insufaf Af-fairs, 90th Pong. 1st Scs,i 37 (Itff i7j (O-tnrr.ent by Senator Bible) [hcrL-maftn- cited a.-

Hearing* ] '!; ",,is the Tapp ("ort N',itional Seashore \c

\\ fiith fr,r tn# first time aiii-j\\^d nxvnr*ii --iimpr^APvi (>rijpt'riy trt rctjtn ,> timitrd iniercs

in ;h* ir v<jnde»m«l prc'i»?rt) Si-f Pi-tj L 87I i6. T5 St*r 2*4. 16 L 'S r

an* no;huiory

While the legijlativc hiitory of the Lake*shore Act is for the moat part silent M tothe rationale behind the use of the ''CapeCorf formula," the kgislative history of theCapo Cod Act iUelf in of some guidance. *H row-sis that the "C«p« Cod forniuifl"attempts to Icaacn the burden of condemna-tion for private landownen who have devel-oped their property, while at the turtle timeattempting to g^uarantw maximum accessof undeveloped iandg to lh« public S&eS Rep.No.428, 87th Cong,, Ut Se«. 27, /»-printed in [1961] I'.S.Code Cong. & Ad.New* 2212, ?235. Use of the cutoff dateenables the government to ascertain from acertain date exactly which property wili besubject to immediate and total condemna-tion. hi, a', 26-27. [1961] i/.S.Code Cong. &Ad News at 2235. A cutoff date also pre-'•enle anticipatory conj«truction of residen-tial buildings by owners of undevefopcdprfiper^y Cf iti. at 25 [1961] U.S.CodeCong & Ad News at 22a3 (the Cftpe CodAct provides that a cutoff data shall aJsoApply to the date of ;he acquisition of prop-erty to prevent fraudulent conveyances to•h i ldren j . Finally, a cutoff date diftcoureg-^5 construction of building* for the purpose•>f adding1 value to the property which thegovernment, and not the landowner, ulti-.iiftUly mu«t hfeir l$67 He&ringz, supra atZrt2 (Comment hy Senator Mo*»),

Tht above facUm indicate that a rewnn*able basis does tfti*t for cslahlishing a ret-ruspectiv* cutoff <Jflte U» determine whethera limited property intvreat may !# rviained^y an owner of property It is not .'or us. inth;s «'jwe, to question the wisdom of theexact date of the cutoff Justice Holmesperhaps put the point r«*t *hen he Haled:

When a legal dist inct ion i*.« no one doubU that it may

and day. childhood and maturity, or

:n A previous act we rru\ mf^r that thebehind ih^ pfioi- wbfni* -i Applicahle

f- ihf Uheshorc AM as »cu 5-*v rmfeiet vThompson. 5iM F 2d «23 626-2" (7th C" ).

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