EPA entered into an agreement with the Respondent providing for the release and discharge by EPA of a CERCLA 107(l) lien on the real property comprising the Fort Orange Paper Co. Superfund site. EPA has incurred response costs in performance of removal actions at the Site and filed a CERCLA 107(l) lien on the real property at the Site. The Respondent is not the owner of the Site nor are they a potentially liable party with respect to the Site.
However, the Respondent is the holder of approximately $1,000,000 of municipal tax liens against the property, most of the County's liens being senior to the EPA 107(l) lien. Under the terms of the settlement, EPA will discharge its CERCLA lien, the Respondent will seek to acquire the property through foreclosure of its municipal tax liens, and the County will then seek to sell the property to a redeveloper.
Under the agreement, the Respondent would be obligated, upon such sale of the property, to pay to EPA fifty percent of the sales price that it receives for the property. Removal by EPA of the CERCLA 107(l) lien will eliminate EPAÂs one-year right of redemption pursuant to 28 USC 2410(c) that would otherwise be applicable if EPAÂs lien were to be foreclosed. Through the settlement and subsequent tax foreclosure, the Respondent will acquire a property that may immediately be sold free and clear of all liens as well as of federal redemption claims.