In Re: Methyl Tertiary Butyl Ether ("MTBE") Products Liability Litigation
Filing
3795
DECLARATION of Brent H. Allen in Support re: (235 in 1:04-cv-04973-SAS) MOTION for Settlement Defendant Coastal Chem, Inc.'s Notice of Motion and Motion for Good Faith Settlement.. Document filed by Coastal Chem, Inc.. (Attachments: #1 Exhibit 01, #2 Exhibit 02, #3 Exhibit 03, #4 Exhibit 04, #5 Exhibit 05, #6 Exhibit 06, #7 Exhibit 07, #8 Exhibit 08, #9 Exhibit 09, #10 Exhibit 10)Filed In Associated Cases: 1:00-cv-01898-SAS-DCF, 1:04-cv-04973-SAS(Allen, Brent)
Exhibit 2
sctüGmcrt Agrc.e3lt úd RËlèñc Bctxyrcn
Ctry of$lrsao ud Co¡¡t¡l Clæm
tþ
SETIÍ,EMENT ^ûGREEMENT AFÍD RET,EA,SE
This Settlemsnt Aifeement And Relcass ('Settlement and Release") ís made between the
ÇrW of
Frcno,("Crt/)
ancl Coastal Chem, Ino., n/k/a Coscol Petoleum Company
('Coætal
Churr") rcgarding the sÊttleme,üt of all claims betweeû tbem ln the litigaton cryËorcdÛity
Ftasr:ø v. Clzewon ll.S.A. Inc., et q1,,04 Civ. 04973 (SAS)
daæ set
(the Litigátion'),
lorth below. Tbese parties a¡e refened þ hereín collecdvely
tndtvidually
as a
r?arty,"
as the
as
of
ofthe effeotive
'?arties' and
'
T.
RDCITáLS
'
A"
On or abor¡t Octobcr 23,2}03rtlre City ftled a complaint
Superior Conrt, entitlcd
Cþ
Í¡
San Franqisco County
of FYesno v, Chnron US.A, Inc., ef ø1, sceklugmoney damages
and deolaratoryrclief againstcc¡tain membøs ofthc gæolinc
industy ('Defendaub) who
allegedly nanufuctured, disbibuterl, or tansported gasolino oontâiûing methyl tertiary butyl
ether
('MTBE ) that was ultÍmataly delivøed to servicc staüons iu the Cþ of F¡esno. The City
alleges that gasoline containiug
MIBE
was rcleased at cerhin gasolíne stadon sltos
inthe City of
Fresno and conhminated and/or tbr€atens to oontaminate ths City's water system, The City
oontends
tlüt
such rçleases could b¿vo been prevmted
if Defendarrts, including Coastal Chem,
had provided adequate wamings and ínstruúio¡s regårding MTBE and its propcr handling,
Based onthese allegæions, the City asserted cn¡ses of actionfor sûict liability (failue to wam),
uegtigeuoe,
tequss, and nuisa¡ce, and claims th¡t Coashl Chem ls responslbte, inpart, for tho
darnagps tbs City ol¡inrs to ú¿ve
allegations agginst
it.
nffered. Coast¿l Chem denies thi$ claim a¡d all othor material
The Litigation rlras
reúovd
to $cde¡al Corrt a¡d is cunently pending as
SdÍcÍænt AglaØart ¡¡dRclc¡¡o Beston
CltyofFrtsuo lrd Oo¡rul Orcm
tl¡
part of anationwide Eultídisbict litigatíon in the Southern District
ofNy York styled Iz re;
Metþl Tertlary Butyl Ether ("trtlBï") Producß LtøbIIþ Líltgatton,MDL
B.
1358.
¡
Coastal Chem a¡d the City, without any adorission of liability aod solely to avoid
the elpense and bu¡rden of fi¡tt¡re litigatíon, now desire to settle the Litigadon prior to auy vcrdict
or finding of liabilrtÍ and prior
to.
all of the evidence being presented t0 the coûrt or any appvals
ûom any of the desÍsio¡s or rulings rendc¡ed to this point in tho Litigation, all dÍsputas between
tbem adsing û,om tbs Lidgaûon, and all Claims (as dcfinetl bclow) relarcd thereto, Ia euLriug
into this Settlement and Reteasg no Pa¡ty makes åny admission of a¡ly fact, rcsponsibitity, fûult,
orliability.
II.
AGREEMENT
Based upou thè
nbiAf
set forth above and
in conside¡ation ofthe mutual promlses and
conslderation hereinafrer'ilesoribed, it is agreed æ follows:
1.
' Rele¡se by the Ctty.
a.
Tho City hereby releases a¡¡d forcver disohargcs Coastal Chem and its
past, presenf, aûd fiJtuts rel¡ted cntities, par€,nt companies, ultimate pareut oompanies, afElíates,
subsldiaries, joint vcntu,es, parbcrships, prcdcèossors, sr¡cc€ssoË, assigns, and all othe'r persons
and entífles for whosc acts or ortissions Coastal Chern oould be hold lcgally responsible, ,
inoluding but not limited to Coastal Chem, Inc., Coastal Ðerby Refirung Compary, Coastal
Bagle Poirrt Otl Compan¡ Coastal Mart, I¡o,, Coastal Mobile Re,finilc Conpan¡ Coastal Oil
NewBngland,Ino;, Coætãl OilNewYork, Inc., Coasüal RË'ñning & Markcting, Inc., Coastal
Sbtes Trading, Ilrc,, Cosbel FeEolsr¡¡u Corporatior¡ Coscol Petoler¡m Corporation, Colo¡ado
On or about October 28, 2004, while tbis litigation was pending iu Fedoral Court, the
City filed an amended coûrplaÍnt captioncd First Anended OomplaÍnt
4
t¿
WDCgl2W397Svt
Scilomart¿{8,Ìocmrot and RclcrseBctqçr¡¡
CIS ofFrcrno urd Corsbl Ctran
lhr
Oil and Gas Corporation, Derby Refining CompaoS H Paso Corporation,.El Paso CGP
Compan¡ El Paso CGP Company L,L,C,, El Paso Enerey Corporatiot¡ El Paso Merch¡nt
Encrgy-Petroleum CompanS and t}e Coastal Corporation, logethor with all their current anrl
former rospective offfcers, employees, dir€ctors, paftrtrs, nomben, sha¡eholdøs, officials,
agents, aocou¡rtatrts, attornqp, insuranoe sariers atrd reinsruors, sureties, rqrræeotatives,
indqlcndent contastorsr consultants, advisors, and all succsssors, assigns and personlentities in
privity \¡etth'uy one or more of such persons/entities (lhe "Rcleæed Partics'), of and tom all
Cl¿ins (as dofinerl below) that h¿ve been or could h¿ve beeu asserteil in the Litigation at atry
tlmo up ttuougb tåe ei
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