RECEIVED

CLERK’S OFFICE

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

OCT

032005

PEOPLE OF THE STATE OF ILLINOIS,

)

STATE OF ILLINOIS

)

Pollution Control Board

Complainant,

)

)

vs.

)

PCB No. 03-191

)

(Enforcement)

COMMUNITY LANDFILL COMPANY,

)

INC., an Illinois corporation, and

)

the CITY OF MORRIS, an Illinois

)

municipal corporation,

)

)

Respondents.

)

NOTICE OF FILING

TO: Christopher Grant

Bradley Halloran

Environmental Bureau

Hearing Officer

Assistant Attorney General

Illinois Pollution Control Board

188 West Randolph Street

100 West Randolph

20th Floor

Suite 11

Chicago, Illinois 60601

Chicago, Illinois 60601

Charles F. Helsten

Scott Belt

Hinshaw & Culbertson, LLP

Scott Belt and Associates, PC

100 Park Avenue

105 East Main Street

P.O. Box 1389

Suite 206

Rockford, Illinois 61105-1389

Morris, Illinois 60450

PLEASE TAKE NOTICE that on October 3, 2005, the undersigned filed an original

and nine copies of RESPONDENT COMMUNITY LANDFILL COMPANY INC.’S

RESPONSE TO COMPLAINANT’S MOTION FOR SUMMARY JUDGMENT with Ms.

Dorothy Guim, Clerk of the Illinois Pollution Control Board, 100 W. Randolph Street, Suite 11-

500, Chicago, Illinois 60601, a copy ofwhich is attached and hereby served upon you.

One

~

ofthe Attorneys for Communit

andfill Co.

Mark A. LaRose

Clarissa C. Grayson

LAROSE & BOSCO, LTD.

Attorney No. 37346

200 North LaSalle Street, Suite 2810

Chicago, Illinois 60610

(312) 642-4414

THIS FILING

IS SUBMITTED ON RECYCLED PAPER.

---

BEFORE

CLERK’S OFFICE

OCT 032005

PEOPLE OF THE STATE OF ILLINOIS,

)

)

STATE OF ILLINOIS

Complainant,

)

Pollution Control Board

)

v.

)

PCBNo.03-191

)

(Enforcement)

COMMUNITY LANDFILL COMPANY, INC., an)

Illinois corporation, and the CITY OF MORRIS,

)

an Illinois municipal corporation,

)

)

Respondents.

)

RESPONDENT COMMUNITY LANDFILL COMPANY INC.’S RESPONSE TO

COMPLAINANT’S MOTION FOR SUMMARY JUDGMENT

Respondent Community Landfill Company, Inc., (“CLC” or “Respondent”) by and

through its attorneys LaRose & Bosco, Ltd., and pursuant to 35 Ill.Adm. Code 101.516 and 735

ILCS 5/2-1005, hereby responds to Complainant People of the State of Illinois’ (“People” or

“Complainant”) Motion for Summary Judgment and in support thereof, states as follows:

I.

Introduction

On July 21, 2005, Complainant filed its Motion for Summary Judgment against

Respondents CLC and the City of Morris (“Respondents”) based on the initial allegations

contained in the complaint that Respondents had violated the Illinois Environmental Protection

Act (“Act”) by not obtaining the proper financial assurance. (See Exh. A, Complaint and Exh.

B, Motion for Summary Judgment). In addition to requesting summary judgment on those initial

allegations, Complainant specifically alleges that CLC has continued disposal operations at the

Landfill. (See Exh. B, pp. 4 and 8). Based on these new allegations, Complainant asks the

Illinois Pollution Control Board (“Board”) to order CLC to “cease and desist from transporting

and depositing any additional material at the Landfill”. (See Exh. B, p. 16).

1

---

In response to these new allegations, Respondent CLC has contemporaneously filed a

separate Motion to Strike that portion of Complainant’s Motion for Summary Judgment

requesting cease and desist order on the grounds that such relief is improperly requested in a

motion for summary judgment. (See Exh. C, CLC’s Motion to Strike). Therefore, Respondent

CLC’s Response to Complainant’s Motion for Summary Judgment will only address the portion

of Complainant’s motion requesting summary judgment on the grounds ofCLC’s alleged failure

to obtain financial assurance.

II.

Facts

The underlying facts ofthis matter are well known and have been the subject of extensive

litigation. In brief, pursuant to two significant modification permits issued to Respondents City

of Morris (as owner) and CLC (as operator), 2000-l55-LPM for Parcel A and 2000-156-LFM for

Parcel B, respondents obtained $17,427,366 in financial assurance for closure/post-closure

activities in the form of three surety bonds from Frontier Insurance Company (“Frontier” or

“surety”). (See Exh. D). In summary, CLC is the principal for two ofthe bonds, no. 158466 and

no. 91507, which have face values of

$5,906,016

and $1,439,720 respectively for a total face

value of $7,345,736. (See Exh. D). The City of Morris is the principal for bond no. 158465

which has a face value of $10,081,630. (See Exh. D). Bond nos. 158466 (CLC) and 158465

(City) expired on May 31, 2005 and bond no 91507 (CLC) expired on June 14, 2005. (See Exh.

D).

The Board ruled that the Frontier bonds did not meet the requirements of 35

Ill.Adm.Code 811.712(b) because the surety had been removed from the Department of the

Treasury’s Circular 570 list of approved sureties. Community Landfill Company and City of

Morris v. Illinois Environmental Protection Agency, PCB 01-170 (Dec.

6,

2001, slip op. at 22).

2

---

The Board’s decision was subsequently affirmed by the Third District Appellate Court.

Community Landfill Company and City of Morris v. Illinois Pollution Control Board, 331

Ill.App.3d 1056, 1061, 772 N.E. 2d 23t, 235, 265 Ill.Dec. 193, 197 (3”’ Dist. 2002)

(mod?ed

upon denial ofrehearing,

2002). CLC filed a petition for leave to appeal to the Illinois Supreme

Court, which was denied.

Based on the above cited decisions, counsel for CLC wrote to Frontier on March 20,

2003 concerning the payment ofpremiums on the bonds that the Third District Appellate Court

had determined were insufficient to allow the landfill to continue operations. (See Exh. E,

without attachments). On April 7, 2003, Scott Azzolini, Surety Underwriting Manager for

Frontier, responded by stating:

“. . .

we concur with your conclusion that no further premium

billings are warranted on these bonds as the permit application was denied on May 11, 2001. As

such, we are reversing all renewal billings for the above referenced bids and closing our file

based on the May 11, 2001 date.” (See Exh. F.)

On June 19, 2003, CLC formally requested that Frontier release its collateral. (See Exh.

G, without attachments.) On July 2, 2003, Frontier requested that the Agency execute a release

so that the collateral could properly be returned to CLC. (See Exh. H.) On August 21, 2003, the

Agency refused to do so on the grounds that alternate financial assurance had not been received.

(See Exh. I.) On December 18, 2003, CLC again made a demand for the return of its collateral

(see Exh. J, without attachments) and has continued to do so. Frontier’s position has not

changed: it has assured CLC that it will return the collateral upon receipt of a release from the

Agency. (See Exh. K.)

On January 27, 2004, almost one year after the Agency filed its complaint against

respondents stating that they did not have fmancial assurance, Beverly Anderson, accountant

3

---

with the IEPA, specifically stated in writing that “Morris Community Landfill is providing

financial assurance for closure and pos-closure costs through three Frontier Performance

Bonds

(See Exh. L) (emphasis added). On January 29, 2004, Frontier acknowledged the

IEPA had “specifically indicated that these bonds are still in force” and warranted that premiums

be billed. (See Exh. M.)

Finally, and perhaps most importantly, on May 27, 2005, the director of the Illinois

Environmental Protection Agency, Renee Cipriano, made a demand on Frontier for bond nos.

158466 and 91507, the bonds for which CLC is the principal, for a total of $7,345,736.00. (See

Exh. N). The IEPA argued that the fact that the bonds issued by Frontier did not meet the

requirements of the Board regulations to allow the landfill to operate did not prevent it from

collecting on the bonds. (See Exh. N, p. 6.)

On July 21, 2005, nearly two months after it made its claim against Frontier, the Agency

then filed its motion for summary judgment arguing that there are no material facts concerning

the issue of respondents’ financial assurance. What the Agency failed to do in its motion,

however, was inform the Board that it had made a claim on the bonds. The Agency tried to hide

this fact from the Board by disingenuously failing to disclose that CLC has requested the return

of its collateral for more than two and one-half years and that the Agency made a claim on the

very bonds that it fought so hard to keep from being accepted.

III.

Legal Standard for Summary Judgment

Summary judgment is appropriate only when the pleadings and depositions, together with

any affidavits and other items in the record, show that there is no genuine issue ofmaterial fact

and that the moving party is entitled to judgment as a matter of law. Dowd & Dowd, Ltd. v.

Gleason, 181 Ill.2d 460, 693 N.E.2d 358 (1998); People v. City of Waukegan, PCB 01-104, slip

4

---

op. at 2 (August 23, 200t). In ruling on a motion for summary judgment, the Board “must

consider the pleadings, depositions, and affidavits strictly against the movant and in favor of the

opposing party.” Dowd, 181 Ill.2d at 483, 693 N.E.2d at 370; Waukegan, PCB 01-104, slip op. at

2.

Summary judgment “is a drastic means of disposing of litigation,” and therefore it should

be granted only when the movant’s right to the relief “is clear and free from doubt.” Dowd, 181

Ill.2d at 483, 693 N.E.2d at 370

citing

Purtill v. Hess, 111 Ill.2d 229, 240 489 N.E.2d 867, 871

(1986). Even so, while the nonmoving party does not have to prove its case, it must “present a

factual basis which would arguably entitle it to a judgment.” Gauthier v. Westfall, 266

Ill.App.3d 213, 219, 639 N.E.2d 994, 999 (2’~Dist. 1994); Waukegan, PCB 01-104, slip op. at 2.

Finally, the Board’s procedural rules provide that “if the record, including pleadings, depositions

and admissions on file, together with any affidavits, shows that there is no genuine issue of

material fact, and that the moving party is entitled to judgment as a matter of law, the Board will

enter summary judgment.” 35 Ill.Adm. Code 101.516.

IV.

Argument

Genuine issues of material fact exist as to whether financial assurance is in place,

thereby precluding summary judgment on behalf of Complainant.

The Illinois Environmental Protection Agency has asserted in its Complaint and in its

Motion for Summary Judgment that Respondents do not have financial assurance. (See Exhs. A

and B). Yet, at the same time, the Agency has made a claim to Frontier for closure/post-closure

care based on the very same bonds that it claims are inadequate. (See Exh. N). The

Board must not allow the Agency to have it both ways.

On January 27, 2004, almost a year after the present complaint was filed alleging that

respondents had failed to provide financial assurance, Beverly Anderson, accountant for the

5

---

IEPA’s Bureau of Land Compliance Unit admitted in a letter to Frontier that Moths Community

Landfill “is providing financial assurance for closure and post-closure costs”. (See Exh. L)

(emphasis added). At the very least, this admission by the Agency raises an issue of fact in the

present case as to whether financial assurance is in place. Further, the Agency’s own act of

making a claim to Frontier for $7,345,736 should preclude it from maintaining that financial

assurance is not in place.

The Board must examine what the potential results would be of the following two

conflicting scenarios if the Agency is allowed to continue proceeding as it has. If the Agency

prevails on its claim that CLC and the City ofMoths have not provided financial assurance, the

result is likely to be financial penalties to the respondents. At the same time, if the Agency gets

its way with Frontier and Frontier makes a payment to the Agency as demanded on May 27,

2005, the Agency will recover for the very closure/post-closure care for which it claims financial

assurance has not been provided. Ifthese bonds are not in reality potentially providing financial

assurance, what are they providing? If the claim is paid by Frontier, isn’t the Agency receiving

the financial assurance it claims has not been provided? How can the Agency assess a monetary

penalty against CLC and the City of Morris for not having financial assurance and at the same

time attempt to collect just that from Frontier?

Furthermore, any monetary penalty imposed by the Agency must be used to enforce the

Act, not merely punish a party. Harris-Hub Co., Inc. v. Illinois Pollution Control Bd., 50

Ill.App.3d 608, 611 (1st Dist. 1977). Taking the Agency’s convoluted logic to its desired

conclusion would allow the Agency to collect on the bonds while simultaneously extracting fines

from CLC. In essence, the Agency seeks to recover twice from the same allegation thus

contravening its duty to use penalties only to enforce the Act, not punish. Id.

6

---

The Board should recognize that any grant of summary judgment in favor of the Agency

is premature. The Agency and Frontier are still processing the Agency’s claim on the bonds.

(Exh. N). The Agency has concealed from the Board its claim on the very bonds that it fought so

long and hard to keep from being accepted. The Agency’s own prior admission that the Landfill

“is providing financial assurance for closure and post-closure costs”, made prior to its filing the

present motion for summary judgment, is sufficient grounds on its own to deny summary

judgment to the Complainant. (See Exh. L). Any other result would be inequitable prior to a full

hearing on whether financial assurance is in place.

V.

Conclusion

‘WHEREFORE, for the reasons stated herein, Respondents request that the Board deny

summary judgment to the Complainant, and grant Respondent CLC’s contemporaneously filed

Motion to Strike Portions of Complainant’s Motion for Summary Judgment.

Respectfully submitted,

Attorney for Community Landfil Company

Mark A. LaRose

Clarissa C. Grayson

LAROSE & BOSCO, LTD.

Attorney No. 37346

200 North LaSalle Street,

Suite 2810

Chicago Illinois 60610

(312) 642-4414

fax (312) 642-0434

7

---

CERTIFICATE OF SERVICE

I, Clarissa C. Grayson, an attorney hereby certify that I served a copy of the foregoing

RESPONDENT

COMMUNITY

LANDFILL COMPANY

INC.’S

RESPONSE

TO

COMPLAINANT’S MOTION FOR SUMMARY JUDGMENT by placing the same in the

United States Mail, first-class postage prepaid this 3rd day of October 2005, addressed as

follows:

Mr. Christopher Grant

Mr. Scott Belt

Environmental Bureau

Scott Belt and Associates, PC

Assistant Attorney General

105 East Main Street

188 West Randolph Street

Suite 206

20th Floor

Moths, Illinois 60450

Chicago, Illinois 60601

Mr. Bradley Halloran

Mr. Charles F. Heisten

Hearing Officer

Hinshaw & Culbertson, LLP

Illinois Pollution Control Board

100 Park Avenue

100 West Randolph

P.O. Box 1389

Suite 11

Rockford, Illinois 61105-1389

Chicago, Illinois 60601

One ofthe Attorneys for Comm nity Landfill Co.

Mark A. LaRose

Clarissa C. Grayson

LaRose & Bosco, Ltd.

Attorney No. 37346

200 N. LaSalle Street

Suite 2810

Chicago, Illinois 60610

(312) 642-4414

---

Exhibit A

(a

---

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

RECEIVED

CLERK’S OFFICE

PEOPLE OF THE STATE OF ILLINOIS,

APR 16 2003

Complainant,

STATE OF ILLINOIS

vs.

)

PCB No.

~

/~U

Pollution

Control Board

(Enforcement)

COMMUNITY LANDFILL COMPM~Y, INC.,

an

Illinois corporation, and

the CITY OF. MORRIS, an Illinois

municipal corporation,

Respondents.

~OMPLAIKT

Complainant, PEOPLE OF THE S’WTE OF ILLINOIS, by LISA

MADIGAN, Attorney General of the State of Illinois, complains of

Respondents, COMMUNITY.LANDFILL

CONPM~Y, INC., an Illinois

corporation, and the CITY OF MORRIS, an Illinois municipal

corporation,, as follows:

COUNT I

FAILURE TO PROVIDE ADEQUATE FINANCIAL ASSURANCE

1. This complaint is brought by LISA MADIGAN, Attorney

Gene~a1of the State of Illinois, on her oWn rñotion and at t+ie--

‘request of the Illinois Environmental Protection Agency

(“Illinois EPA”) ~ursuantto Section 31 of the En’)ironmental

Protection Act, (“Act”), 415 ILCS :5/31 (2002)

2.~ The Illinois EPA is an’ administrative agency of the

State of Illincis, created pursuant to Section 4 of the act

,•.

415

ILCS 5/4 (2002), an~Th charged inter ai.ia, with the duty of

---

enforcing the Act.

3.

Respondent CITY OF MORRIS (“City”), is an Illinois

municipal corporation, ozganized and operating according to the

laws •of the State of Illinois,

and located in Grundy County,

Illinois.

The City is the owner of the’Morris Community

Landfill, a special waste. ahd’municipal solid waste landfill

located at 1501 Ashley Road,.Norris, Grundy County, Illinois.

I

4. The Morris Community Landfill.is approximately 119

acres in area, and’ is divided into two parcels, designated parcel

“pj’,

consisting of approximately 55 acres, and parcel ~

consisting of approximately 54 acres.

5. Respondent COMMUNITY LANDFILL CQMPANY, INC. (“CLC”) is

an Illinois corporation, duly authorized to transact business in

the”State of Illinois.

CLC is the operator of the Morris

Community Landfill, and manages day-to-day operations of both

parcels at that site.

6.

From at least June 1, 2000 until the time of filing

this Complaint, Respondents have arranged for and superVised the

deposit of waste, including municipal solid waste, garbage, and

special waste, into waste cells at tie Morris Community Landfill.

7.’ As owners and operators.of the Morris Community

Landf ill, the City and CLC are required by Section 21.1(d) of the.

Act, 415 ILCS 5/21.1(d) (2002), to apply for and obtain landfill

permits, including operating, significant modificatIon,’ and other

2

---

municipal, solid ~qaste permits, from Illinois EPA.

8.

‘

On August 4, 2000, Respondents were issued Significant

Modification Permit Nutr~ers 2000-155-LFM, covering Parcel A, and

2000-156-LFM,

Oo’/erin~ Parcel E. Onjune 29, 2001, the

Respondents were issued Permit Modification No. 2 for parcels A &

B.

On January 8, 2002, the Respondents were issued Permit

Modification No. 3 for Parcel A.

9.

From át.least June.1, 2000 until the time of filing

this Complaint, Respondents have conducted disposal operations on

parcels “A” and “B” of the. Morris ãommunity Landfill.’

During

this period, the sole assurance of closure and ,post cloâure costs

provided by Respondents to Illinois EPA has been three separate

performance bonds underwritten by the FrontierInsurance

Company.

10’..

OnJunel, ‘200Q, ,the United States Treasury Department

removed Frontier Insurance.. Company from the” compilation of

acceptable surety companies listed in.the United States

Department of Treasury publication “Circular 570”.

11. At no time from June.1 2000 until the filing of this

complaint, has Frontier Insurance’ Company been added’backto:the

‘~Circular.570’ list of. acceptable surety companies.

12.

Sectibn’’21 of the Act, 415 ILCS 5/21 (2002) provides,

in’ pertinent part, as follows:

‘No person Shall:

.

***

3

---

(d) Conduct any waste~storage, waste-treatment or

waste-disposal operation:

*

‘

(2) in violation of any regulations or’ standards

adopted by the Board under this Act..,.

*

**

13. ‘PursUant to’ authQrit’y granted by the Act, the Illinois

Pollution Control Board has promulgated regulations requiring and

regulating closure arid post-closure financial assurance for

municipal solid waste latidfills.

These regula?ions are codified

at 35111. Mm. Code, Subtitle G, Subchapter I, Subpart ~ (“Board’

Financial Assurance Regulations”)

14. section 811.700 of’the ~oard. Financial Assurance

Regulations, 35 Ill. Adm. Code 811.700, provides, in pertinent

part, as follows:

.

‘

‘

**

(fl

On or after April 9, 1997, no pexson, other than

the State of Illinois, its agencies and

institutions1

shall conduct any disposal

operations at an MSWLF unit that requires a permit

under subsection (d) of section 21.1 of the Act,

unless that’ person complies with the financial

assurance requirements of this Part.

15. Section Bll.7.l2of the of the Board Financial Assurance

regulations, 35 Ill. Adm: Code 811.712, provides, in pertinent

part, as follows:

**

(b) the surety company issuing the Bond shall be

licenced to t’rans.act’the business of insurance by

4

---

the Department of Insurance,’ pursuant to the

Illinois.Insuranc’e

Code 215. ILCS’5~,. or,at a

minimum the’insurer must belicerised to transact

the business of insurance or approved to provide

insurance as an~excess or surplus lines insurer by

the ‘Insurance Department of one or more states,

and approved bythe

u.s;

Department of the

Treasury as an acceptable s~.irety.. Section

2l’.’l(a.S) of the Act, 415 ILCS S/21.’.(a.S)

BOARD NOTE:

The U.S. Department of the Treasury

lists acceptable sureties in its Circular 570.

16.

,

Section 3.26’ of the Act~ 4l5~ILCS 5/3.26 (2002),

provides the following definition:

‘ ‘

‘

“PERSON” is an individual’, partnership,. co-

partnership,’ firth,’ company, limited ‘liability

company, corporation, association,

joint

stock company’; trust, political subdivision,

state agency, or any other legal entity,. or

their legal.representative,

agent or

assigns.

17.

Réspondent,CLC, an Illinois corporatiot~, and Respondent

City of Morris, a political subdivision, are “persontsl” as .that

term is defined’ Section 3.26 of ~he Act,

415

ILCS 5/3.26 (2002).

18.

Section

3.85 of ‘the

Act,

.415

ILCS

5J3.85 (2902),

provides, as follows’

“Municipal Solid Waste Landfill Unit” or MSWLF unit”

means a contiguous area of land or an excavation that

‘receives ,ous.eho,ld waste, ‘and that is not a land

applidation unit, surface’ impoundment, injection well,

or any pile of noncontainerized accumulations” of sol~.d,

nonf lowing waste ,that is used for treatment’ o~ storage.

,A MSWLF unit may also receive other typS of RCRA

Subtitle ID wastes, such as commercial solid waste,

nonhazardous’sludge,

small quantity generator waste and

industrial solid waste.

Sucha landfill may be

publicly or~private~.y owned. A MSWLF utUt may be a new

MSWLF. unit, an existing MSWLF unit, or a lateral’

expansion.

Asanitary landfill is subject to

-

regulation as.a MSWLF’unit if it receives household

5

---

waste.

‘

19.

Parcels “Wand “B” of The Morris Community Landfill

are “Municipal Solid Waste Landfill unitis”,

and: “M~~uni~9”

as those terms are defined in Section 3.85 of the Act, 415 ILC,S

5/3.85 (2002).

‘ ‘ ‘

20.

Section 3.53 of the Act, 415 ‘ILOS S/j.53 (2002),

‘provides, in pertinent part, as follows;

“WASTE” means any garbage.. .or,any other discarded

material, including any solid, liquid, semi-solid, or

contained gaseous material resulting from industrial,

commercial, mining and agricultural operations, and

from community~activities....

21. Section 3.08,of the Act,

415

ILCS 5/3.08 (2002),

prdvides, as follows:

wDisposalfF means the ‘discharge, dep~sit,

injection, durñping, spilling, leaking or

- ‘ ‘

placing of any waste or hazardous waste into

or’on any: land or water or into any well so.

that such waste or hazardous waste or’any

22.

‘From ‘at least June 1, 2000 until the time of’ filing

this complaint, Respondents arranged for and supervis~d the

deposit of special waste, municipal solidwaste,

garbage and

other wast~ at ‘the Morris Community Landfill.

Respondents

thereby conducted a “waste disposal operation” as those terms are

defined in the Act.

,

‘

23. From June 1, 2000’until the time of filing this

complaint, Respondents hate conducted dispoSal operations at both

parcel “A” and parcel

“a”,

of the Morris’ Community Landf ill,, with

6

---

closure and. poSt-closure financial assurance solely in the fortin

of three perfoimance bonds f rpm Frontier Insurance Company, a

company not listed in ‘United Stated Department’ of the Treasury

“Circular’ 57O’~, and’ the±eforé not, meeting the requirements of 35

Ill. Adm. Code 811.712.

Respond,ents’have thereby violated

Sections 811.700(f) and 811.712. of the Board Financial ‘Assurarice

Regulatiotis, 35 Ill. Adm. Code

811.700(f) ahd 811.712,

and have

thereby aTho violated Section

21(d)

(2) of the Act~

415

ILCS

5/21(d) (2) (2002).

‘~ ‘ ‘ ‘

‘

“

WHEREFORE, Complainant,

PEOPLE

OF T~E STATE OF ILLINOIS,

respectfully requests, that the Board eiiter an order against the

Respondents, COMMUNITY LANDFILL COMPANY, INC. and the CITY’ OF

MORRIS on Count I:

H

‘

‘

1. Authorizing a hearing inthis matter at which time the

Respondents will.be required to answer the allegatiohs herein;

2..

Finding that the Respondents have violated Section

21(d)(2) of the Act, 35111. Adm. Code 811.70.0(f), and 35111.

‘Mm. Code ‘811.712;

3.

‘Ordering the Respondents to immediately ‘obtain, and

provide, to Illinois ‘EPA, landf ill closure ‘and post-closure,

financial assurance meeting the’ requirements of the Board

Financial Assurance regulations;

‘

‘

‘Ordefing the Respondents to cease and desist from any

further violations of’Section21(d) (2)of the Act, 35 Ill.. Adm.

-

7

---

Code 811.700(f), and 35 111. Mm. Code 811.712~’

5.

Assessing a civil penalty o’f Fifty Thousand Dollars

($50,000.00)

against the Respondents for each’ violation of the.

Act and pe’rtinent”regulations,

and an additional, civil penalty of

Ten Thousand Dollars ~$1o,,oo’o.oo)for’ each day of violation;

6. Ordering the Responde~ts,to.payall costs, pursuant to

Section 42(f) of the Act,,including’attorney, expert witness, and

consultant fees expendea ‘by the State’in its pursuit qf this

action’; and

7. Granting such other relief as the Board deems

appropriate and just.

PEOPLE OE THE STATE OF ILLINOIS,

LISA MADIGAN

-‘

P~.ttorneyGeneral of the’

State of Illinois

MATTHEW J. DUNN, Chief

Environmental Enforcement/Asbestos

Litigation Division’

BY:

i&~~-_~L

-

Rb MARIE \CAZEAUç ‘Chi~&

EnvironMen’~a~..,,Butha.u

Assistant Attorney Geñ~ra-

S

---

OF COUNSEL

CHRISTOPHER GRANT

Assistant Attothiey General

Environrñental Bureau

188 W. Randolph St.2Oth Floor

Chicago, Illinois

60601

(3J.2) 814—5388

‘

-

9

---

BEFORE THE ILLINOtS POLLUTION CONTROL BOARD

PEOPLE OF THE STATE OF ILLINOIS,

Complainant,

‘

‘

vS.

‘

‘

)

PCBNO,

-.

)

(Enforcement)

COMMUNITY LANDFILL COMPANY, INC.,’

)‘

an Illinois corporation, and

.

the CITY OF MORRISI an Illinois

municipal corporation,

Respondents.

‘

CERTZFIOATE OF’SERVICE

I, CHRISTOPHER GRANT, an attorney, do

certify

that I caused

to be served this 16th day

of

April, 20,03, the foregoing

Complaint and ‘Notice of Filing upon the persons listed below by

certified mail, and addressed to:

FOR COfrMCJNITY LANDFILL COMPANY, INC.

Mr.

Mark

La Rose, Registered Agent

734 N. Wells Street

‘

Chicago, Illinois 60610

FOR CITY ‘OF MORRIS

‘

The Honorable Richard Kopcziclc, Mayor

320 Wauponsee Street

,

Morris, Illinois 60450

‘

‘ ‘

~

CHRISTOPHER GRANT

---

Exhibit B

---

EEFQRE THE ILLINOIS POLLUTION CONTROL BOARD

PEOPLE OF THE STATE OFILLINOIS,

Complainant,

)

vs.

COMMUNITY LANDFILL.COMPANY, INC.,

an Illinois corporation, and

-

the CITY OF MORRIS, anIllinois

mUnicipal corporation,

Respondents6

CLERK’S OFF~C~

2

‘

zOOS

PCB No. 03 ~&uV~0fl

TATE

O~control

~LUNO~S

Board

(Enforcement-Land)

coMnattn.NT’s

MOTION FOR SUb’~ARY JI) EM NT

NOW COMES the Complainant,

PEOPLE OF THE STATE OF ILLINOIS,

through its áttorhey, LISA MADIGAN, Attorney General of the State

of Illinois’, and requests that the Illinois. Pollution Control

Board’ (“Board”) grant, pursuant to 35 Iii. Adm. Code 101.516,

summary judgment in’ favor of Complainant and against the

Respondents, COr’&IUNITY LANDFILL COMPANY, and the CITY’OF- MORRIS.

In support thereof, Cdmp~sinant states’ as follows

I.

INTROOUCTIO~t/BACtCGROUND

1.

On.April 16, 2003; the State filed

its Complaint, on

referral from the Illinois Environmental Protection Agency

pursuant to Section 31 of the Illinois Environmental Protection

‘Act (“Act”)

,

415 ILCS 5/31 (2002)

The State alleges that the

Respondents violated Section 21(d)(2) of the AcE, 415 ILCS

5/21(d) ‘(2) ‘(2002), and 35 Ill. Adm. Code Sections 811.700 (f)

and 811.712, through’ failure to provide adequate financial

‘C

---

assuraflce for dlosure/post-closure

activities at the Morris

-

Community Landfill, Morris, Grund~ County Illinois ‘(“LandfIll”)

Financial :assurance is required by 35 Ill. Mm. Code, Part 811,

~ubpart

0.

-

-

‘

- -

‘

-

2.

Upon application by the ReSpondents, on-August 4, 2000’

‘Illinois EPA issued two significant modification permits to ‘the

Respondents,,2000-155-LFM for Parcel A Exhibit ‘Al,’ and 2000-156-

LFM for Parcel B ,tExhibit B). The Respondents. subsequently

obtained various modificatiOns to the Permits.

Both Permits (and

modifications thereto) were issued -to Respondent City of’ Morris

(“Morris”), as owner, ‘and Respondent

Community

Landfill Company

as operator.

Pursuant to-these permits, and the

-

provisions ‘of the Boárd’s,,landf ill regulations,

the Respondents

‘were

tO provide a total of $17,427,366.’O,O -in compliant financial

assurance, beginning in 2000. See Exhibit A,-p. 45, par. -6,

Exhibit B, p. 33, par. 6.

- ,

‘

-

-

3.

Section 21.1 of the Act requires “persons” conducting

waste. dispo~al operations pursuant to.an Illinois EPA-issued

permit to post “...a performance bortd or- other security for the

purpose of insuring closuie of the’site’and post closure care in

“accordance with thià Act and regulations adopted- -thereunder..

4is

ILCS 5/21.1

(2002)

.

- -

-

- ‘

‘ -

.4..

Closure/post cloSure financial assurance must’meet the

provisions of 35 Ill. Adm. Code 811.700, as further described by

-

‘

-2-

I

-

---

35 ill.

Adm.

Code Sections 811.706, 811.710 through 811.717,, and

811.719-720.

These regulations,

and the Act, prohibit any person

from conducting’ wa’ste disposal operations without adequate,

compliant financial assurance, i.e.- -financial assurance meeting

the specific requi~ethents pf these Board regulations.

5.

The Respondents have failed to àomply with the

conditions of their permits and ‘the pertinent regulations.

Instead, in 2000, the Respondents provided Illinois EPA with

three surety bonds issued by Frontier Insurance Company~--an

inadequate surety:

Copies, of these bonds are attached hereto as

Exhibit C.

‘

‘

‘

--

6.

Following denial of subsequent permit applications due

to inadequate financial assurance, the Respondents fully’

litigated,the

‘issue’ of whether,the Frontier Bonds met regulatory

requirements, In

Community Landfiil’Company and City of,Morris

‘v. Illinois EPA,

PCB 01-48/01-49 (Consolidated) (April 5,’ 2001,

slip op., at

‘29) (Exhibit DL the Board found that the amount of

financial assurance’ to be maintained by the R~spondents was

$17,427,366.00. In

Community Landfill Company and City of Morris

v. ‘IllinbisEPA,-PCBO1-l70

(December 6, 2001,. slip op. at

22)

Exhibit El, the Board found that the Frontier Bonds-did not

meet the requirements’of 35 Ill. Adm. Code 811.712(b).

The Board

upheld the denial of the permit applications due to the

-

Respondents’ failure to provide adequate, compliant financial

-3-

---

assurance’.

On’

appeal,.

the Appellate Court ~.ffirmed- the Board’s

-

finding. 33. Ill. App. 3d 1036- tExhibit- F.

The Illinois Supreme

Court subsequently denied the Respondents’ Petition for -Z.~eave.to

Appeal.

202. 111. 2d’ 600 (Dec. 5, 2002)

.

-

7.

As the á.ttache,d Exhibits demonstrate, the Respbndehts

have failed to provide’ ~

financial’ assurance meeting the

requirements’ Of the Act or their-permits.

However, they have

continued operations, specifically waste dispo~al in paz~cel A ‘at

the’Landf ill, without fnancial

‘assurance.

- -

8.

This Motion seeks an orde± finding the Respondents in

violation ‘of the pertinent regulations and the Act, ordering the

Respondents to stop disposal of any material at -the -Site until

they comply with theAct, Board-regulations,’ahd

relevant

-

Permits; ordering the Respondents to immediately provide

-

financial assurance meeting the requirements of the Act, and

relevant permits; and-setting a date f or hearing’ on the issue of

Civil Penalty.,

-

-

‘

-

II.

PRflIMINflY MATTERS

9,.

Complainant alleges that the ReCpondent,s have violated

35 Ill. Adm. Code Sections 811.700(f) and-811,.712.

Section,

-

21(d)(2) of the Act, 415. ILCS 5/2l~d)(2) (2002)’provides

that

violation of these regulatIons are violations of the Act as well.

10. The pertineãt sections of the -Act and regulations

provide:

‘

-

-

-4-

---

415 tLCS 5/21(d) (2) (2002)

No person Shall’:

***

(d) Conduct any waste-storage,’ waste-treatment or

waste-disposal operation:

*

*‘

*‘

(2) in violation of any’regulations or standards

adopted by- the Board under this Act..

*

*

-

*

-

35

Ill.. Adm. Code Bfl.7ó0(f)

-

‘

-

*

*

*‘

(f) On or after April 9, -1997, no person,. other than

the State of Illinois’, its agencies and

institutions,’ shall conduct any disposal

- -

-

operations at an t4SWLF unit-that requires a permit

undersubsection

Cd) of section 21.1 of-the Act,

unless

that person complies with ,the financial’

assurance requirements of’this Part.

-

35 Ill. Adm. Code 811.712

‘

***

(b) the surety company issuing the Bond ‘shall be

licenced to transact the business of insurance by

the Department of Insurance, pursuant to the

-

Illinois Insurance Code

-

(215 ILCS 5), or at a

minimum the insurer must be licensed to transact

the business of insurance or approved to provide

-

-

insurance as an excess or surplus lines insurer by

-

the Insurance Department of One or more states,

and approved by the U.S. Department of the

-

Treasury as an acceptable surety.

Section

2l.l(a.5)

of. the Act, 415 ILJCS 5/21.1(a.5).

-5-

---

-‘

‘BOARD NOTE:- The ‘U~S. Department of the Treasury

lists acceptable sureties in its-Circular

570.

11.

-

In its Answer, CIJC admits ‘that it is a “person”, as

defined,

The City of Morris denies that’ it is & “person”, as

-

-that term is -used in the Act. However, Respondent Morris admits

that i?’is in-Illinois municipal corporation Morris Answer,

par.3)

.

Section 3.315

of,

the Act, 415 ILCS 5/3.315 (2902),

define’s “person” as follows:

“PERSON” is a-n individual,’partnership,

co-

-partnership, firm, company, limited’liability

-

-

company, corporation, assQciation, joint

-

stock company, trust, political subdivision,

-

state agency, or any other legal entity,’ or-

their legal representative,

agent or assigns.

12.

As a municipal corporation, the-City çf Morris is-a

‘political

subdivisiOn’, and therefore a “person”.

The City of

Morris’ denial of thi~ allegation is frivolous.

-

-

-

13., Respoitdent CLC admits that-it was issued-the following

permitâ: Significant Modification Permits No. 2000-1SS-LFM a~d

2000-l,56-LFM on August 4, 2000, Permit Modifibation No. ‘2 on Ju,ne

29, 2001-, and Permit Modification-No.

3 oh’danuary 8, 2002 CLC

Answer, par. 8.

-

However, Respondent Morris denies that it was

issued these’ permits (Morris Answer, par.

81.

Again, Respondent

--

Morris’ denial is frivolous’,

ExhibitS A and ~ clearly indicate

that the City was Permittee

a~

‘owner’. See, also: Affidavit of

Brian White Exhibit G, par. 7-B regarding subsequent permits.

Moreover, Respondent Morris vigorously litigated the denial of

-6-

‘

-

---

its subsequent permit applications in Case No.’ PCB 01-170, and

the Appellate Court.

Respondent Morris’ standing in these cases

was as existing permit -holder, and applicant for the ‘(denied)

modifications.

There is no genuine question that Respondent

-

Morris is Permittee under all relevant Landfill permits.

-

l4~ Section3.285of’theAct,

415 ILCS 5/3.285 -(2002),

provides, as follows:’

‘

“Municipal, Solid ‘Waste Landfill Unit” or MSWLF -unit”

means a contiguous area of land or an excavation that

-receives household waste, and that is not ‘a-land

application unit, surface impoundment, injection well,

or any pile of noncontainerized accumulations of solid,

nonflowing waste that is used for treatment Or storage.

A MSWL~ unit may also recejve other types of RCRA

Subtitle D wastes, such as commercial’ solid waste,

-

-

.nonhazardous sludge, small quantity-generator

waste and

industrial solid wa~te. Such a landfill may be

publicly or privately ‘owned. A MSWLF unit may be’ a new

MSWLF unit;

an existing MSWLF unit, or a lateral-

-

expansion.

A sanitary landfill is subject to

-

regulation as a MSWLF unit if it ‘receives -household

waste,

15

Both Respondents admit, that’ parcels A Sc’ B of- t~e Morris

Community Landfill are MSWLF units.

Therefore the provisions of

35 Ill. Adm. Code 811.700(f):appl~’ to the entire !lorris Commv.nity

Landfill.

‘

‘

- ‘

III. THE RESPONDENTS HAVECONDUCTED A

WASTE DISPOSAL OPERATION

a.

-

Activities

of Both Respondents

‘

-

16., Although theterm’waste

disposal’ operation’-is npt

defined in the Act, the facts show that, both Respondents are

‘conducting a waste disposal operation’ at the Landfill, giving’

-7-’

---

that term i’ts ‘common meaning.

First, both Respondents were

issued pez~mits for

solid

waste

disposal

at the landfill:

This

fact alone, ‘as a matter of law, demonstrates that both

Respondents were conducting a waste disposal operation.-, In

addition, as shown by Exhibit H, the Respondents submitted

report’s acknowled9ing the receipt of solid waste at the Landfill.

These reports were signed, under oath,’by the Mayor of the City

of Motris and’ th-e President of CLC, and indicate dumping activity

during ‘the years 2000, 2001, and 2002.

Although the Respondents

have failed to submit’ these ~eports

for subsequent years See:

Affidavit of Ellen Robinson, Exhibit ‘H-, par.

7, as

shown by the

Affida~zit of Mark Rétzlaff Exhibit I, par. 11, waste disposal

at the Landfill has continued,’ in parcel A, through at least May

is;

‘2005’.

, ‘

b.

Activities of Respondent Community Landfill company

17. Re~pondent CLC admits that it is the operator, and that

it manages day-to-day operations at the LandfillS CLC Answer,

par. 5

..

It also admits that it was issued Significant

-

Modification Permits No. 2000-155-LFM, ~2000_156LLFM, and’

modif±cations issued on June 29, 2001 and January 8, 2002

c.L~

-

Answer, pàr~ 8

. -

As shown by the Affidavit’ of Mark Retzlaff

Exhibit

I’, CLC employee James Pelnarsh Sr. continues’to manage

operations at -the Site.

In’October, 2004, Retzlaff noted dumping

of general debris, and--reviewed-records of- substantial dumping of

-8-

-

---

petroleutn-contami’nated soil.

Exhibit I, par.

‘7-9.

On May l9,~

2005, James Pelnarsh Sr. admitted’ to additional

dumping the

previous day.’ Exhibit I, par. 11

c.

Activities

of Respondent City of Morris

-

18. Not onlydid,the

City apply for the relevant ,permi~s,

it provided, as principal,

a Frontier Insurance Company ~urety

,bond in the sum of $10,081,630.00 Exhibit’ Cl. Also, ,the City of

Morris was a Petitioner in the’ two Lcatldfill Permit appeals, and

was co-appellant in ‘the appeal of, -the Boards’ finding in, PCB 01-

170.

‘

-

‘‘

-‘

-

19.

Respondent Morris has,also profited from continued

disposal at the Site-.

As sho~inby excerpts from the deposition

transcript of the City’s representative deponent, Mr. John Enger

Exhibit J, the City receives a toyalty for waste dumped at the

Landfill, free-or reduced dumping fees, and (formerly) royalties

f torn operation of a landfill ‘gas-to-energy plant..

Exhibit J, at

p. 21-22.

‘ -

‘

‘

-‘

20.

The City of Morris’ active’involvemént,in

permitting

for solid ~aaste disposal, bonding the landfill,

and collecting

royalties for-waste dumping, ,shows’that’it was, along with CLC,

‘conducting a waste disposal Operation’.

-‘

-

1V4

COMPLAINPST IS ENTITLED TO StTh2~tARY JUDGMENT

-

21.

Section 101.516 of the Board Procedural Rules, 35 Ill.

Adm. Code 101.516, provides, in pertinent part, as follows:

-

-9-

---

*

*-

*

b)

If the record, -including pleadings, depositions and

-

admissions on f-ile,’together with any affidavits,

show

that there is no genuine issue of material fact, and

the moving party is entitled to judgment as a-matter of

law,

the Board will enter summary judgment.

22., The affidavits,

depositions, prior Board ,and court

rulings, and the pleadings in thiS matter clearly’ indicate that

the Respondents have failed to provide- the required financial

assurance for the Morris Community Landfill, in violation of the

Board’s fihancial assurance regulations, and the relevant

landfill permits.

‘

-

a. The Respondents have violated

35

fli. Adn. Code 811.712

-

23. Section 811.712 of the Board regulation~ requires that’

Performance Bofids used as financial assurance be listed in the

U.S. Department of the Treasury ‘Circular 570’.

-

24. The Respondehts noncompliance with 811.712’ has

- -

previously been decided-. In PCB 01-170, the Board found that the

Frontier’ Bonds submitted by Respondents did not meet the

requirement ‘of this SectionS. Exhibit E,’at 14. The Appel~.ate

Court, Third District upheld the Board’s determination. Exhibit

Z,

at’4.

,,

--

-‘

25: The principal of Collateral Estoppel should be applied

in our case. Collateral Estoppel applies whe±e:’

- -

-

1) the issue decided in the prior adjudication is identical

with the one presented in the instant matter;

2,) there was’ a final judgement on the merits in the prior

adjudication; arid

-

-

‘--10-

---

3) The party against ‘whom estoppel is asserted was a party

-

or a party in privity with a party to the prior

adjudication.

-

-

-

People

v. Cozr1munityL&ndfill Co.

et al. ‘FOB 03-191, slip op at

4-

5

(October 16, 2003),(citing

E.SG Watts, Inc. v. ZEPA,

POE 96-191

and 97-210, slip op,. at 2-3 (July 23, 1998))

-

-

26.

The issue of whether the Frontier Bonds were cpmpliant,-

decided by the Board in PCB .01-170, is’ identical to -that in our

case-the Bonds -are the same. This issue- has already readhed a

final adjudication,

and was reviewed on appeal.

The Respondents

were Petitioners in

POE 01-170, and fully liti~atedthe issue.

-

27. Although cou~ts’closely scrutinize the a~p1icationof.

‘offensive collateral ‘estoppel’

,

its use is appropriate in this

case. CourtS do nQt faVor offensive collateral estoppel. where:

.1)

it. may encourage potential plaintiffs to ‘wait and see’

-

rather than joining in earlier litigation;

a,nd/or

-

2,)

‘where the prior litigation

was comparatively-minor,

and

a Defendant did- riot have incentive to fully litigate

an

issue.

-

-

American Family Mutual Insurance Co. v. Savickas1

193 Ill.

2d 378, 390 (2000)

.

-

-

-

-

28. However, neither of- these factors is present in th~.s

-

case. Firs~., ‘the p~ior. litigation involved the same parties.

The Sta?e could not ‘wait and sea’ for a favorable .result:

Respondents’ permit appeal tin

POE

01~17Q1 was thrust upon it.

Also, the Respondents, -seeking to operate new sections’ of the

landfill, had the incentive to vigorously litigate the legitimacy

—11—

---

of their own bonds. In fact -the Respondents appealed to Board’s

ruling to Appellate Court, and sought leave to appeal to. the

Illinois Supreme dou~t. There is no unfairness to the

Respondents from applying offensive collateral estopp~l, and its

use is reasonable-there is no reason to further- l~.tigate- the

‘legitimacy’-of the Frontier Bonds.

‘

‘ -

-

29, Moreover, as shown by the Af’fidavit’,of Brian White

Exhibit G, par. 11; Frontier Insurance Company is,not listed on

Circular

570. -Therefore, as a’matter of law, the Performance

Bonds provided do nQt comply with either Section 811.712 or. the

-Respondents’ permits.

-

-

-

30-. By providing noncompliant performance, bonds as

- -

financial assurance for closure/post closure of the Landfill, the

Respondents have violated 35 Ill. Mm. Code 81~.712. There is no

genuine question’ of-material fact, and the’Board should find that

Plaintiff is entitled to judgment on-this issue as a matter of

law.

--

‘

-

-

b.

The ~espondents

Violated, and Continue to Violate,

35

Ill. Adn. Code 81l.700(f)by Failing to Provide

Adequate Financial, Assurance

-

‘

-

-

31. Section 811.700(f) of-the’ Board regulations, 35 Ill.

-

Mm. Code 811,. 700 (f)

,

prohibits disposal operations at Municipal

Solid Waste Landfills without compliant financial assurance.

32.

-

The Board and the appellate court have previously

determined that the Fx’ontier Bonds did not meet the, requirements

-

-12-

.

-.

---

of 35 111Mm. Code 811.712(b); the Board does not need to

-

revisit this issue. However, the Respondents also have failed to

substitute or provide. any adequate financial assurance, even

-

though they have known since no later than Decerrtber’5, 2002 (when

-

the Illthois Suprerqe-Court denied. Respondents’ Petition)

,

that

the Frontier Bohds. did not satisfy their financial assurance

obligations.

-‘

-

-

-

33. 35--Ill. Adra. Code 811.706 lists ten alternative

mechanisms for providing acceptable financial assurance,

including,

inter alia,

compliant performance bonda, payment’

bonds, insurance policies, and local government guarantees.- As

showx~by the Affidavit of Brian White,’ neithe’r Respondent has

arranged for or submitted closure/post closure financial

assuranOe conforming with ~y of these ten mechanisms Exhibit 0,

par, 12

.

The Respondents do’ not now have,c adequate,

-

compliant financial assuranqe for closure/post closure of parcels

-

A & -B of the Landfill. This fact is indisputable.

-

-

34. In addition, the Respondents have” arso failed to

provide annual updates of closure/post-cJ,~sure costs, or even to

annually, adjust !5timate5f0r,inflat10~as.rèquired by 35 Ill.

Mm. Code 811.701(c) Exhibit’G, par. 14-151, and their -Permits.

35.. B~’conducting -waste disposal operati.ons at -the’ Landfill

after August 4, 2000, without providing financial assurance

according to the requirements of’35.Ill-. Adm. Code Sections

-13-

---

811.700 and 8~1.706,the Respdndents have violated 35 Iii. Adm.

-

Code 811.700(f). There is no genuine issue of material fact, and

Complainant is entitled to judgment as a matter of law.

c.

Violation of 415 ILCS 5/22. (d)(2).

36. Section 21(d)-ç~) of th~ Act provide’s that “no person

shall...conduct any waste~storage,’waete-treatment, or waste-

disposal operations.. .in violation of the Board’s ,regula~ionsand

standards

“

As shown above, the Respondents have conduqted,

and continue to conduct waste disposal operations at the-

Landfi1l~ while violating’BS Ill. Mm. Code 811.712’ and-

811.700(f).

The Respondents have thereby also violated Section

21(d) (2) of the Act, 415 ILCS 5/21(d) (2) (2002). There Is no

genuine issue of material fact and Complainant is entitled to

judgt~ent’as a thatter of law.

,

-

-

d. The

Respondents’ Violations were Wilful, Knowing, ‘and

Repeated

-

-

37. The Respondents have viblated the financial assurance

regulations, and their Permits., since at least August 4, 2000.

Since no later than December’S, 2602, when the Illinois Supreme

Cou~tdenied their Petition for Leave to Appeal, the Respondents.

--

have been fully aware that the Frontier Insurance Company bonds

were- noncompliant, and thus insufficient,

-

Yet the Respond~ents.

-

have failed to provIde any other compliant financial assurance

‘for closu±e/post-closureof the landfill to the date’ of filing

this Motion fo±Summary Judgment, even though, as shown by the

-14-’

---

Lanafill Capacity Reports Exhibit H)

, -

and the Affidavit- of Mark

Retzlaff E*hibit I)

/

they have continued waste disposal

operations. The ResPondents’ failure to provide compliant

financial assur’ance, while coz~tinuingwaste disposal operations,

constitutes wilful,, knowing, and repeated violations of the Act

and pertinent regulations.

-

-

V.

-

REQUESTED RELIEF

‘

‘

‘

-

-

38’.

Although there should be no doubt regarding the

Respondents’ violations of the financial ass’,arance violations,

discovery ‘in this case c~ntinueson issues related to civil

penalty, specifically the economic benefit accruing’to the

Respondents from these violations. Complainant-believes that a

hearing on the sole issue of ci~vilpenalty will be necessary once

-

disdovery closes on September 25, 2005. However there, is no

reason to delay, the Board’s decision on the Respondents’

liability, or to delay interim relief in the form of an Order

stopping ‘additional dumping and requiring the Respondents to

immediately comply with the closure/post-closure financial

assurance regulations.. Therefore, Complainant respçctfully

requests that the Board order interim relief in the form of the

following:

‘

- -

-

1.

-

A finding that the -Respondents have violated 4~5ILCS

5/21(d) (2) (2002), and 35 Ill.- Adm. Code Sections 811.700 (f) and

-

811.712;

‘

-

-

-15-

-

‘

---

2. A fi~idingthat the Respondents’ violatibns were wilful~

kncwing and/or repeated;

-

3.

ordering the Respondents

to cease and desist from

tratisporting and depositing any additiotial material at the

Landfill until they are in full compliance with their Permits,

and the Board’s financial assurance regulations;

-

4.

Requiring the Respondents-to immediately provide

financial.assurance as required by the Act, Part 811, Subpart C

of the Board sOlid waste regulations’, and the Respondents’

permits;

5. Requiring the Respondents to update the

-closure/postclosure costs in accordance with PermitsNo. 2000-.

l55—LFM, 2000-156-LFM and modificationa thereto;

- -

6.

Ordering the- Respondents to initiate closure of parcels

A & B of the Landfill; and

-

. - .

-

7. Setting a date,for hearing on the issue of civil

penalty.

,‘

. -

-

.

‘

- .

-

WHEREFORE, Complainant, PEOPLE OF THE STATE OF ILLINOIS,

respectfully requests that the-Board grant its Motion for Summary

Judgment against the Respondents., COMMUNITY LANDFILL COMPANY and

‘the CITY OF MORRIS, award the relief requested herein, set a date

for hearing on the issue of civil penalty1 and’ take such other

action as the Board believed to be appropriate and just.

16-

---

Respectfully Submitted,

BY:

A

/

StONiER G~NT

ML2’CHELL COHEN

Assistant Attorneys General.

Environmental Bureau

188 W~ Randolph St., 20~’Flr.

Chicago, Illinois 60601

(312)

814-5388

-

-

(312) 814-5282

-

-17-

---

Exhibit C

---

BEFORE THE ILLINOIS POLLUTION CONTROL BOARD

PEOPLE OF THE STATE OF ILLINOIS,

)

)

Complainant,

)

)

vs.

)

PCB No. 03-191

)

(Enforcement)

COMMUNITY LANDFILL COMPANY,

)

INC., an Illinois corporation, and

)

the CITY OF MORRIS, an Illinois

)

municipal corporation,

)

)

Respondents.

)

RESPONDENT COMMUNITY LANDFILL COMPANY INC.’S MOTION TO

STRIKE

PORTIONS OF COMPLAINANT’S MOTION FOR SUMMARY JUDGMENT

Respondents Community Landfill Company, Inc., (“CLC” or “Respondent”) by and

through its attorneys LaRose & Bosco, Ltd., and pursuant to 35 Ill.Adm. Code 101.500 and 735

ILCS

5/2-615,

hereby moves the Illinois Pollution Control Board (“Board”) to strike portions of

Complainant’s Motion for Sumnary Judgment and in support thereof, states as follows:

1.

On April 16, 2003, the Complainant filed its Complaint alleging that CLC

violated Section 21(d)(2) of the Act, 415

ILCS

Sections 811.700(f) and 811.712. (See Exhibit A, Complaint).

2.

This one-count Complaint alleged that that CLC had not obtained the proper

financial assurance as required by the Act. (Ex. A).

3.

This Complaint asked the Board to conduct a hearing, find CLC in violation,

order CLC to obtain financial assurance and assess a civil penalty. (Ex. A).

P~T_

---

4.

On July 21, 2005, the Complainant filed its Motion for Summary Judgment on the

allegations set forth in its Complaint. (See Exhibit B, Motion for Summary Judgment, without

exhibits).

5.

In addition to requesting summary judgment on the initial allegations,

Complainant alleges for the first time in any pleading in this matter that CLC has continued

disposal operations at the Landfill. (See. Ex. B, page 4, Para. 7; page 8, para. 17). The

Complainant includes an affidavit from Mark Retzlaff.

6.

In addition to this allegation, the Complainant also asks the Board to order CLC

to “cease and desist from transporting and depositing any additional material at the Landfill.”

(See Ex. B, page 16, para. 38(3)). Like the additional allegations referenced in the above

paragraph, this additional request for relief is above

and beyond the initial relief sought in the

Complaint.

7.

For the reasons stated in the Argument section of this Motion, CLC asks that

this

Board strike the portions within the Complainant’s Motion for

Summary Judgment that contain

new allegations and separate relief above and beyond those set forth in its initial Complaint.

ARGUMENT

In its Motion for Summary Judgment, Complainant launches a specific allegation of

dumping against CLC. This off-handed allegation marks the first such notice to CLC of any

further violations of the Act. The procedural rules require the Complainant to seek permission

from the Board before alleging new facts and allegations. See People of the State of Illinois v.

Petco Petroleum Corp., 2005 WL 1255250, page 3 (2005). In any Motion to Amend a complaint,

the Complainant must also provide just and reasonable cause for the amendments. Id. By

2

---

circumventing the Board’s own procedural

rules, the Complainant has denied CLC’s right to

notice and an opportunity to be heard on these new allegations.

Similarly, in its Motion for Summary Judgment, Complainant also asks for relief not

initially sought in its complaint. First, it asks for “interim relief in the

form of an Order stopping

additional dumping.” Exhibit B, page

15,

para. 38. Second, the Motion asks the Board to order

the CLC to “cease and desist from transporting

and depositing any additional material at the

Landfill.”

W.~

page 16, para. 38(3). By requesting such relief, Complainant is asking for relief

above and beyond what was initially plead in their complaint, which contained allegations of

failure to provide financial assurance. According to the procedural rules, the party filing the

Motion for Summary Judgment “may move the Board for summary judgment for all or any part

of the relief sought.” 35 IL

ADC 101.516(a). This additional requested relief is plainly different

than the relief initially plead.

Second, while the Board does have the power to issue a cease and desist order, it may

only do so upon issuing a final order. 415 ILCS 5/33(a) and (b). The Board may only issue such

final orders “after due consideration of the

written and oral statements, the testimony and

arguments that shall be submitted at the hearing.” j~.To date, the Board has not had an

opportunity to make such considerations, making any cease and desist order premature.

WHEREFORE, for the reasons stated above, Respondents ask the Board to strike the

portions within the Complainant’s Motion for

Summary Judgment that contain new allegations

and separate relief above and beyond those set forth in its initial Complaint.

3

---

Respectfully submitted,

Attorney for Community Landfill Company

Mark A. LaRose

Clarissa C. Grayson

LAROSE & BOSCO, LTD.

Attorney No. 37346

200 N. LaSalle Street, Suite 2810

Chicago Illinois 60601

(312) 642-4414

Fax (312) 642-0434

4

---

Exhibit D

---

BOND RIDER

INSURAN~ECOMPANY

2636 Elm I-jill Pike, Suite 500

Nashville,

Tennessee 37214

To be

attached to and form a part of Community Landfill Corporation

,as Obligee.

It is understood and

ateed

that the Bond is changed or revised in the particulars as indicated below:

Bond No.

158466

~_Datçd

May

31st

of_____________ 2000

as Prinôipal, and

The bond amount is hereby increased from: $5,177,016.00

to: $5,906,016.00

•AND

The expiration dati of tbebond is hereBy amended from: 5-31-01

to: 5-31-05

Said Bond shall be

subject

to all

its

terms,

conditions, and limitations, except as herein

expressly modified.

This

Bond Rider shall become !ffective: July 13, 2000

IN

WITNESS

WHEREOF,

FRONTIER INSURANCE

COMPANY

has

caused

its

corporate seal to be hereunto

affixed this:

July 13. 2000

FRONTIER INSURANCE COIVIPANY

Chri(tinc Cahill, Attorney.in-Fact

(S2a)

—

EXHIBIT

FRT-RDR (4/99)

---

INSURANLb

LUMPA4V)

2636

Elm

Kill Pike. $ulu 500

Nnhviile,

Tinnsssn

3

7JJ$

8O?CD RIDER

to be attached

in

and fo~tna part

of C~jttnzz~r

L~d~i~Cotpc’n

lion

Bond

No;

.

.~

15*466

Dated

May 3 t~

cf_

2000

—

. ..

.

, as

Fcirci;:i, r4

rao~cntR

INSURANCE COMPaNY, as

Surety, in favor

of illinois

Envfroitc,ttat Frocction

j~get.:y

;asOblig:L.

It

is

understood and

azreed that the Bond Is changed or

revised in

the

paniculsn as indicated

below:

tbc bond

amount

is

hereby Increased tnni~:S?,177.O16.0O

.

to:

£5,906,016.00

AND

The

nplrstlon date orthc bond Li hereby amended

from:

5—31-01

to: 5-31-05

3at4 aond

shall

be

subject to

ill

its terms,

cocditjott, r4

limitations,

except as

herein

expressly

modtfted,

This

Bond

Rider

,hal become

effective: July 13.2000

IN WITNESS

WHEREOF,

ThONTTER 114$IYRANCE COF4PADrt’ has caisstd its

corpora:: sat t: bt heteunto

aftjxtdthis:

tuly 13.

2000

FRONTIIR INSURANCE COMP&NY

~-~

j’.~LkU,

1L

/

Chz4cMe

tabflI.

Atwnny.I~-cstt

?ttR~R jl/9i)

---

5at4a, iit,ApçniMa *

~

Awana. !lu_.

fltijvlntln P ?e.&4ontiSItC

BeS

?E&P0*

WA

4CR

30N1)

Q~leb’nJ acculad

£tVcdlv. ILSC;

Mc’)’

31,

woo

Ma’t3I.

2~OO

rnzintk~LnAtti1

r,-..-,r,,p~n,

Typ.

otsreCflttltiflfl

nt

.Sun,~:

LrI’A 5”.

Nwnjbsc:

C;,y:

•—_____________________________________

IlLinois

, ,______________________________________________

FronUer Inc~rance

Cempan)’

A,~ifl.’i 0~c,nr,i.~4br dil, bond:

CEPA S.

CSumb.r:

0630600001 —

Grw,dy

2q~~x.

S________

_____

Audi

cir:

CIiy:

.szds.-.rnunttv

IAndrj1.~o. (Cnn.

afficeL

i

~grfl S.

As~aiQ2~s.

b4up,-.4.’In.

flhlnri~c~SOAfl

4’.nivnl pi~rajuecdby this

~and~

$ S. 177

ni~cnO

— ~

‘i1M91 •

“N”’

rr’ LJ.,ion

Irace I. ,i..daid In ntl

,iln.

t,..~tg~euuls.in

er

b~n,4;3

3,J3

7.~fli AJSfl

S Uitlf e houj ,iws,’i Fr

I

lii.ip~fl a

~ul iii • Siu.iy

p..uu...

in p.iy Ike tilL~,.i

En

,tzwv’,r,,i.I rn’ic ciI”. A

jetty

(~~JE~A’)

ii,. this~i

p.,ia

I •i flu .ini,.. ii.:

i’..ii.ir.I ,.r .Surciy pinehic, ~k”Ulf

ik,’il (in(ICIUM&ft gin or h9JtIt~’IitU ~LhUII

tI~

flII

flit sit jccSttlMiit •‘9!~ i!.i~.4.~si,e..aa4.f.s#44.!usik-s.

~ ~

~, ,~ ~

~

r.., u,~

.s..

tu iii. pririsitrif

or

t.’ abC ij~’lo.i‘b’

l’uiniyat

p.,d Si’~iy J..l eaSy •,~i •.‘.inlly ~isiJ

‘0’ ~ri

.

~1. l(Iei$ ‘c~ tiecgIvs’,

r.4:n

1i4 ‘i~

a,t.n.

•,cce~,un N~ii

inlçn,.

~iic’~a~

Ii. I”rw.dpi.i Is

“q”i’

:4. lander .Seclh.u j t(d) ,‘t Usc E,iv~c.,o,iiil~S~tpte.~Ijen

Mi

(LU.

ac’. Si~s

I

V~t.

ci,. lit Itt. pas.i lit! td I

I .13 1LCS ~F21(JflI

,.v.

r

Ic •‘u,,tl,i41 A W:,plg dispni.C openii”t:

ii

i!,

u

r~i.wur..t Iv

‘, I

e~I~~.qj‘r ~.ci rn 21,1 ,.r ike Eu.

rr

~

V.., ntkn A:t, It. p~ç~Itta flit,in-171 ti U luWt

R-’

t’lo.to • nail

.Iu.w~ci,.

•~‘

,,au, .~Iin natø,i: au’4

“1.. c~clue

S

‘.,ei~

i,

•.,ø.tI by eli. Jlt.i,n~tUCpaItItLfluI wC hi euiatiicc~

Wi~-.t.i

ll,i Vr~nrtp~LMU Sunly

sync

uliat Uia~w;.d .1,41 In ~.v~.”•4 hi the lewe aflh,t Susie

ot

IUru’it:

Ii,

---

FRONTIER INSURANCE COMPANY

195 Lake Louise Marie Road

Rock Hill,

New York 12775-8000

Financial Statement as of December31, (999

certi& that the below listed officers were dulyeiected by the Board ofDirectors of Frontier Insurance ~ompanyind

conhinuetcold.:he~atscowfl~c&o.tho.~,.ta!lco

OFFICERS

Harry

W. Rhulen

President

Gerald

ç.

Steimers

Vice President

David E. Campbell

Senior Vice President & Assistant Secretary

Richard M. Marshall

Vice President

Jonathan M. Farro’v

Senior

Vice

President

Joel P. 0db

Vice President

Joseph P. Loughlirt

Vice President.& Secretary Joanne E. Jenkins

Vice Presideni

Mark H. Mishler

Vice President Finance &Trcasurer Kent B. Lombardi

Vice President

Thomas I. Dei~

Vice President

Edward A. Schirick

Vice Presiden’

Gerard

Haftwick

Vice President

Bruce L. Man

Vice Prcsiden

RicliardF.

Seyfarth

Vice President&ChieflnyestmentOfficer

Donna M. Braunstein

Vice Presiden

Mark

S. Allaben

Vice President&ChiefActuary

Dennis Gilbert

Vice Pr:sidtn

Jeffrey C. Gordon

Vice President & Controller

Steven Zeitman

Vice President

Robert Hradil

Vice President

Lonette Pearson

Vice Presiden

Leon Gottlieb

Vice President

further certify that the following Financial Statement of the Company Is true, as taken from the books of the Company as otfltcew.ber.u31,.1999.

ASSETS

Bonds

Preferred stocks

Common stocks

Real Estate

Cash and short-term investments

Premiums

and agents’

balances

in course of collection

Other invested assets

held by reinsurers

irance recoverable on loss payments

-. tied investment income

Receivable from parent, subsidia~ies

and

affiliates

Federal Income Tat recoverable

Other

assets

_______

TOTAL ASSETS

51.162,172.834

$605,782,251

51,484,835

I 16,050,447

36,017,770

51,174,695

56,l65,35~

42 .96 6

.96

0

5

22,508,125

8.527,83.3

11,591,360

2,944,262

156.958.927

LIABILITIES

3411,529,19’

185,988.13:

7.3719 8:

l77,368,S4~

1,218,79’

I 07.994.9Y

70.625,03

962.596.925

Losses

Loss adjustment.expenses

Taxes,

licenses

and

fees

Unearned premiums

Reinsurance payable on paid loss

and

loss adjustment expenses

Payable to

parent,

subsidiaries

and Affiliates

Excess required

statutory reserves

Funds held by company under Reinsurance Treaties

Other liabilities

TOTAL LIABILITIES

_______

Common stock

Paid-in

and

contributed surplus

5,000.001

Unassigned funds çsurplus)

.

290.974.59:

Total policyholder s surplus

S&6.398.678

5199.575,91

TOTAL LIABILITIES i~

POLICYHOLDER’S SURPLUS.

$1 .162.1 72.83

CORPORATE SEAL

e~..

STATE OF NEWYORK

COUNTY OF

SULUVAN

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of the Company this 19th day of April, 2000.

FIAKJ’c W.. KHUL~N,PresiGent

On this t9thday ofApril 2000, before the subscriber, aNotary Public of

tbe State

ofNew York in

and

forthe County ofSullivan, duly eommissionedand qunliflcd. came HARR’

W.

RHULEN

of FRONTIERtNSURANCE COMPANY tome penonally known to be the individual and

officer described herein,snd who.execjrted ths.preceding instrurnen

and acknowledged the execution ofthe same, and being duly sworn, deposed

and

said, that he is the officer of the Company aforesaid,

and

that the seal atitced Lo the precedin

instrument is the Corporate Seal of the Company,

and

the

Corporate

Seal and signatureas an officer were duly affixed

and subscribed to

the said instrument by the authority an

direction otthe Corporation, and that

the

resolution of the Company,

referred

to in the preceding instrument, is now in

force; and

that jaid Corporation

has

received

from th

Superintendent of

Insurance

otthe State ofNew York, a

certificate

ofSolvency and of

its

sufficiency as surety or guarantor under Section 1.1.11 ofthe lnsuranc* Law ofthe Sta

ofNew York.

(N TESTIMONY WHEREOF.! have hereunto set my hand,

and

affixed my official seal at Rock Hilt, New York. the

day and

year above written.

MCA&LN4ESC

Ney P,S1 Sin at New Yost

Sc.,

Coexey O..t~a2395

Cr.nSSn Isp.rn July S.

.caes

NOTAR.IAL SEAL

FRT-FIN (4/00)

---

INSURANCE

fl-antler

COMPANY

2636 Elm Mill Pike Suite 500

Nashville,Tt4 S7214

(A Slack Company)

POWER OF

ATTORNEY

IILIhI All 2’flcti Ih~Thi-et’ ~Jrceenfa:That FRONTIER INSURANCE COMPANY, a New York Corporation, having its principal office :n

Rock I-fill. New York. pursuant to the following resolution, adopted by the Board of Directors C? the Corporation on Ihe 4th day of November. 1985:

“~ESOLVE0.that the Chairman of the Board, the President, or any Vice President be. and hereby is, authorrredto appoint Attorneys-in.

Fact to represent and act brand on behalf ci the Companyto executebànds, undertakings, recognizances Snd~therc~ntractsofindemifity

and wr’lings obligatory in the nature thereoi,and toattach theretothecorporate seal orthe Compantin’the transaction 0111$ surety business;

“RESOLVED, that the signatures and attestations ot such

off

icers and the seal of lhe Cor~panymay be affixed tOarffsuch Power of Attorney

or to any d’ertiflcate reialing thereto by facsimile, and any such Power 01 Attorney or ceniftate bearing suc?t facsimile signatures or facsimile

seal shall be valid and binding upon the Company when soalfixed with respect to anytond. undertaking, recognizance or other contract of

indemnity or writing obligatory in the nature thereof:

“RESOLVED,that anysuchAttorney.in~Factdeliveringa secretarialcertification lhattr~eforegoingresolutions slilib~inetlectmayinsertin

such certincation the dale thereof, said dale lobe not later than the dale ci delivery tr,ereof by such Attorney-in-Fact.”

This Power of Attorney is signed and seated in facsimile under and by the authority

of the

above Resolution.

DOES HEREBY MAKE. CONSTITUTE AND APPOINT:

~Vtd E. ~q±efl

thdstire ~hi.U

&e~cryE.

~zw

L~ne

K.

,irtttteStateof ‘Ië’r’~e

its true and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name, placea’td~stead~osign;Texecnre:acknowIedgeand

deliver in its behalf. and as its act and deed, without power of redelegatlon, as follows:

Bonds guaranteeing the

fidelity of

persons holding places of

pubric

or private

tn.st guaranteeing the petormance~tcontractsotherthan

lnsur~ncepolicies; and executing or guaranteeing bonds and

undertakings

required or permitted In all

actions

qr proceedingsar by law

allowed; IN AN AMOUNT NOT TO EXCEED FIVE MILLION ($5,000,000.00) DOLLARS and

to

bind FRONTIER INSURANCE COMPANY

thereby as fully and to the same extent as If such bond or undertaking was signed by the duly authorized officers of FRONTIER1NSURANCE

COMPANY, and all the

acts

of said Attorney(s)-in-Fact pursuant to the authority herein given are hereby ratified and conru’rned.

2Itt ~itncss 3t~1trcuf, FRONTIER INSURANCE COMPANYGIRoCk Hill, NewYork.has caused this Powerof Attorneyto be signed byits

Vice President and its Corporate seal to be affixed this

j,5-J’1

day of

• .

FRONTIER INSURANCE COMPM(f

•

.__

State of New York

ss’

- -

BY.

DAVID E. CAMPBELL Vice president.

County ot Sullivan

“

-.

On this

1,5th

day of

~Y

,

, before

the

subscriber, a Notary Public of the State of

New York in and for the County of Sullivan, duly commissioned and

qualified, caine

DAVID E. CAMPBELL of FRONTIER INSURANCE COMPANY

to me personally known to be the individual and officer described herein, and who executed thö preceding Instrument,

and acknowledged the

execution of the same, and being by me duly sworn, deposed and said, that he is the officer of the Company-aforesaid,

wd~atlhflqaI-aflixedio’

the preceding instrument is the Corporate Seal of the Company, and the Corporate Seal and sig~atureasan

offlcsrwuredulyaffixedandsubscribed

to

the said instrument by the authority and direction of the Corpontion, and that the resolution of the Company, referred to Inihepreceding

instrument, is now in force.

JJrt tcatimanu ~flicrcaf, I have hereunto set my hand, and affixed my official seal at Rock Hilt, New-Yorki-theday and year above ~rWen.

•

______

AkICIAA. LANESE

•

Notary Public State of New York

Suulvan County Clerk’s No. 2396

•

Commission Expires July 8, 2000

CERTIFICATION

t,JOSEPH P. LOUOHLIN.Secretaryof FRONTIER INSURANCECOMPANY0I Rock Hill, NewYork, do he4~t~ettify

thattheJ&.going~RetG1u1ion

adopted by the Board of Directors of this Corporation and the Power, of Attorney issued pursuant thereto, are true and correct, and that both the

Resolution and the Powers of Attorney are in full force and effect

2Itt

~li~tnzei ~I1crcaf, t have hereunto set my hand and affixed the Facsimile seal of the corporation this

3,st

day of.

~•___

7J7

/JOSEPH P. LOUGHLIN. Secretary

---

rantier

INSUMIC

COMPANY

2636 Elm Hill Pike, Suite 500

Nashville, Tennessee 37214

(A

STOCK

INDIVIDUAL VERIFICATION

Stateol

.

•

Countyof

_______________

On this

.

day of

•

• , in the year _______________,before me personally came

•

to me known, and known to me to be the person(s) who is

(are) described in and who executed the foregoing instrument, and acknowledges to me that he (they) executed the same

•

PARTNERSHIP VERIFICATION

State of

. County

of _________________________________________________

On this

‘

day of

, in the year

________________,

before m&pe~sonallycame

___________________________________________________________________ to

me known, and known

to me to be th~person who is

described in and who executed the foregoing instrument, and acknowledges to me that he executed the same, as and for the act anc

deed of the said co-partnership.

. .

• .

-

(Signature and title ofoflicial taking acknowledgment)

CORPORATE

VERIFICATION

bLate of

•

111311015

.

•

County

of

C6Ok

On this

31st

.

day

of

~Y

, in the year

2000

, before me personally came

Robert J. Pruim

•

to me known, who, being by me duly sworn, deposes anc

says the he resides in the City

Palos Heights

‘that he is the

President

Correnunity Landfill Corporation

, the corporation described in and which executed the foregoing

instrument, that he knows the seal of the said corporation; that the seal affixed to the s~idinstrument is suchcorporate seal;that it

was so

affi

4tfltfttttt’Oftt’RtwiS”etøiwetprs of said corpo ‘o , a

at

signed his n~nethereto by. like order.

,ql

JICIAL SEAL’

3

.

na:.—

Ptec~.

•

‘NOTARY PUBLIC, STATE OF ILLINOIS

MY COMMIS~2~3X~!2P/ TY COMPANY ACKNOWLEDGMENT

State

of

Tennessee

.

County

of

Davidson

On this

31 St

day of

•

May

, in the year

2000

, before me personally came

Qhristine Cahill

.

to me known to be the individual described in and who

executed the foregoing instrumentand to be the Attorney-in-Fact of FRONTIER INSURANCE COMPANY, which is to me known to be the

corporation

described in the foregoing ‘rnstniment,

and

which, by

its

said Attorney-in-Fact executed the same, and said Attorney-in-Fact duly

acknowledged to me that he knows the Seal of said Corporation; that the Seal affixed to said instrument is ~

was

so

affixed by order of the Board of Directors of said Corporation, and that he executed the said instrument as th c

&dqe~çfsaf~iFRpNTIER

INSURANCE COMPANY, therein described and for the uses

and

purposes therein mentioned, by

virtue

of

‘.

-

~ov~r~of.attd~Y

executed by said FRONTIER INSURANCE COMPANY dated

-

May 1$, 19

~

p~i,’..

“ich said power

has

never been revoked and is still in full forceand effect; and

thAt

the said corporation

has

eled

frqth the Sdpedntendent

asurande of the State

of New York a certificate of solvency ahd of

its sufficiency

as surety orguarantor u’

‘ S~cttørt

317, Chapter 882 of

the Laws of 1939, being Chapter 28 of the Consolidated Laws of New York for the year 1939, and that such c rti~cafipnhasnotbFenrevoked.

____________

t~*t.

•

FRT-PA (1/00)

,

. .

“

Notary Public

L_i’0~i9~~~t

—.

---

‘me

Suits7 ihalt pay the penal

lurn to

the ~T’A or p:ovidc clcj,qre

end nstcla,sirt

cnçt rr ccc~cccti-,.nclic’ti us ACcatdancà With ib. ~fo:u,.

n(ill

plait nun

Cite ur izvrr.cilvt scslu.i plnau

t,r Use

s1s If.

dinIng

II;.

in,, o(

Iii. b,nd, the rc~i~-p~l1;,Us it, r1~1wiite

~lu~irc ti-

rPctcl0aur~

ca

guar;AIeCd

CRZCby Or

thL.

can’tCiiVt

bard. The

~

Pthtcip.~l

(c~r!PY

NUt

pile

to

Iiiso McnMpn.c

prt’ddc whenwiththethist’rtnclpsl:

rhAssit’.

nail pcstclo.uso

Cite

or CdrrtcIiVe seiko pLo’. (tSr n,-,1

is)

&batsdor,j the ifto:

.

.

b)

Ii

;djudicai.d

ba4kNpi;

-

c)

Fs~le

to initIate c-lenin of rise siçc or pustclozwrc csrv oreor,tc1YC acik,, 1,.n orjervd It dose by lii.

bosrsi PrIl

CClIJfl nC

eci’1,~n~

jurisdi~l;sin:

ii)

N~iI (lea ib

A8.,i cy

0s

n I Ii i-,

,siU

lied

~-fr-wre,t’r mu ins.. clun,rt

- t~saI(n.j I a

Is,

,nlose Ii.

s

IC Cl

pro

vjçlc pcu

iL’(tlItirc ,‘ar

iv ~‘‘srrtl

aciiultMI accordaAct wilhi Iii, ciosunw.J puzcclmsuri .ggc or .aUtuIiv. ACSuII

plaits:

or

a)

•Cus1e11p26

Far cnrrecIjvc ~iliun. f4 Li lo lniplcnicur to

rra:lvc

action ni

s:suii:ipil ‘phd

.

Wftstç

-

hodrdj unji iii C:cojJai,cv

wish 3fi Ii. Al,

his Lures)’ shah L pny ih,u penn I lun, AC

the bt,sI

4 jt, Ike ~PA

or

:u uhf7 the IEl ‘4

hIatt I

liii .-,als

ii’

r~

yule

cli

t.tute null p~,.1I~-ht’-’H

cc- ~iiiT

ct,tre~ii~a

nc-sian in ~cord~necwtslt the

c-lo.u:e Md

poslcboiurc care nr ci~rrccij

Vt

acciuti rI.’~’~

Cnt the aLe wiih’us M sin

p nut,

lie I Er,’

ni

A

U’

tint

ire in the Surely thai iii.

Pthivip

at tins 1.1

lcd

‘o ‘ci

pc-c’vhclc

do.turc sinU

peal

~‘Iii~ii~c

ca,: ur eor.’aclI

ye

~QII

ri.

l’;’y nit, ~l

niade by

check

or

draft

payn~Ic

to si~cSi:~.orDuiuls,

Lr.;41Th

CLosure

~us,L

Poswlusun rwiu.

If

sIte Ssir~tyoorL’les

ib.

Agency ihsatI iliseilcia

its

prsevidc

cheAure suid

pnsi~’lnnsiredire or cntre~Iivs nclkiit,

hen

die

Surciy ‘nun inirlir

ciesor.

ssnsL poslelupu

to

~gc or

cnrreelive

telisli, WLIhIln

6cr slay. after

the IEI’A sisal!.4 isetius to the Surely flint (lit P4tIcIpit I I~’ilcil

provide elojurc and postclorJrc

cat, ci; tonetllvc

ac-lion,

the

Sititty 111t141 ~tt.tiirleIe

clc’,qre aIIU pt~lcla~iure

c-al, i’r C.IIECSI I VtitQli,ii

accncdanee

wUIi

slit closure and

pa.ttlastire

cat.

or coircutive a,fl~tin

pious.

tic

mY

list

~iI;sl

aunt.

-

The Lnb’diry

ot

the

Surthy abnil

psat

he din-ltnr;cd

by any

p;yn’enI

c.r

PUeCI,SSII’II ~.fpnyinetii’ ,irt’in~iun,Fuiidl

such

pnyn

tnt

tsr

pi’ysircii:

sh,;tU ~zstQufltIrs

the

tggrIgAlt 10 iii petsal su~uat III. bond. Zn

ito nctiç ‘lint! I!,, oljU;si(Iois at the 5~jory

cs

end

II,. Inloillit tit (lie pc

‘Otis.

‘flux

bond shall

sAptre on ike

~II~ day

s’( _________—i ~

provides1, I~wevei-,tlinl it the Pthtci ni falls to p~ctviclcsithilirlite

uir;irr~b~

ntsurancr prior in lb. lzpinItinri disc, SIIJ hiss IEPA hua’ds notice of

auth

£nhlurv

to the Suu fly

witt~i3ii

clisys sitter such ~l,lc,Ike

Iei,,i

pI

Ild. bond ,h:,U be autustuaticnt ly czt~rsdcdh,: asic Iwclwe.nitsi,tl,

pcrl’icl sieflIng

with lit

data

of

...tdr.i:ion

of th.

ban U.

‘I’ll

C

Prtii~-tis

I

is

i,y

tern,

iiua It it, is boIIS1

by

FcnQhIig

,rs4ttc,,

nulj~-:

Iii lilt Sti

city:

provided,

Iitsw r c~,

ifi at

itt’ ~utIs nor s-c sliaII

e(fe~sivc

unsit

site Surciy recejvas wrglets iwtliutttnliosl (Cr r.nstlisat’ion a(s),. boost

(55.10 he IEt’A,-

-

-

Li Wilisc.sj

Whereat, th, Pi-in~ipnh

~~cl

Surcty have

.*ecsjted this For(cituc’s flood

such

lint.

n.Iflxail thir~j~en.l.,

pis

tI,e

441e UI f~’i~Ii

~

Tutcpc;.toni wI,øsc

,i~tiatuuti~ppcnrbelow

ccnlty thai Ih~.jsirs obtIiOtlZ*Ll Iv cAe~UiCUsis snncy binsd

Un

~l11gf--açt~s

Vtinsi-ylii-;;n-J

5qr.iy.

-

-

-

PPJNCIPAL O~trruutyCar~i.11CoC~XX3t1Q1

.

CQgPO&ATESUMfl

-

. —

,~QJ-ç,~

C?L._—.

.--—.

NaI,IC

Ftmb.ei~-

‘flSxarCe QIIIEflY

Typcilt’laiise

-

Asidreas

26~Elm Mill PiJá,-Sjite 53D

,ni-n.i-

r

,

-

‘~etivil1e,

‘IN 37214

Tithe.

-

Shale of

kscc.rrc~nsIinI; ~

--

President

-

5/3//do

-

u&4~L_-.- __

.1)N’t Nat,.

-

Ut~-

-

-

Title

AttcrrEy—In--E~t

-

Corporate

seal

Dondprcnsiucsi

3_1O~,543-W

115

---

sccUotflh1appn~ZA Vi.c.c14 Aa.waaot’vs

flIu,trstlofl D

PcrComspJiCc 3on4

PERFORMANCE 9DM)

Lfl5~

bond c.tCcu(ed:

EiTc~flivcdisc:

priiscip~i:

flhinO1~

—.

Ft’or-ttier Insurance

Cowpany

bond:

0630600001

—_Grundy

2~P~x

Mnrrjs Ccnminjtv

LandfJdL

Co.

139O~S.

Lshian4j~v~.

Riuar-dAlp

T1t1nn4~ S0k2t

Anit’unl $UMAI\iicd by thIs

bond:

-

.,J’!e;twi. ntsa~ha .opanrapts$t U’

sisort

Irints is n..deil.for nil rites-

¶sirni Ntt.ti nuns ofbc’nt4:

3 ~ .177, O1~_IO

SutcIys

btsnd

ItUnISCr~

1,56465

-

- -

—

Tic-

b’rtis’. ip;si

anti ilu

a Sit

r’ y

pisinsise

I” ~y

ih? flh

~

n;

a En vhn’su’u easel Pnss e,1

Inn Ag esIcy

(“IS PA”) the st~ove pairs I

asi,fl nolea. site

I tsr .Su rc sy ps-nvi she, ci ,,.xsss

e

sid pariclosure

~rs

s-c çsr turt ~c ~jvs

;t’ljus;

es’,

cacTi sit • its

-accord

nice wil h it. ci

essa re an uh resWIiisoi

e

,ii,,

vi corre CI iva act ion ph .iq q

tnt

il

ins

aft,.

To Ilse pays,,. sit of I I’J obti~Miusi

sj~

• l’siia-ipal MU 5;s~sy Jni ntly nod

se~enhI

y

bind

ii ‘~t,,rvs.. t heir litirs, e~ecuI

ut’. ad~ts

ho)

“t

nus’rs, ,uc~es

sot’

a

nLgss’.

Wiescas tic

Prfrus~ipssl

I’ riquireil, under Seclk’ss 2 ~(d of CIsc Estv~’o,,rsuc,st,,iP;pcct(es Mi (1,11. ~ev, 5~t.1991, ehs. 111 1(2, pat. lIlt

I(tli

1415 1LC3 3/2

t(J)Jl~lo

has-c ~pamsit to ~-otschswt-1 wutaIc chspnsid opcrniicsis:

-

Wit ta,.

the

rrhutcirst I.! rcqsshetl, iticler Sccliets 21,1 tsr she E,,s-irsms,se,ssnh

h’s-ssrtsiut,

Act;

is. prcss-htc

fltiast’;i:I seNt, Y,VC

5-r

uhs’.uIc

usd

c,.

or çu scvi

tw

c actLout: a,,.5

-

-

Wit ~ she $ wetj is I k c,s~cthby iii

• ill

toni’ U e~a,ti

is

ml of Lu

su r:usue:

-

-

-

~S’Ist-va.clist Prinu’~paI

nnd Suriry ag n

ths.’t tl,i~boost slush be •ç,vcnscd by 515. Isi,v. of hue Shale ot

lii ipoh.c:

-

-

127

I

Ct-

May

3t,

2000

-

-

-

-

-

-

MaY 31-. 2000_

-

-

crm~nn1fry

c~’-r~ffl1

rnrparaftinrt

,

-

-

11903

South kgilsnd

R~verdgte.

-

Illinois

60822

Ty1t Of orsoruLaRoss:

Slate

nf

hsccs.ycsr;nicn:

lcrsy

5

ii.

5:

IEI’A

Silt Number

rinnie:

Add-es.:

City:

AssIc’sIsst ~untatsI.edby uljhs

EPA

Site

Number:

‘4n,isr

—-

-

-

-

-

3

Ccorv.

o’eticeL

-

S 5177JQj.$O0

---

f~a~tiat

-

INSURANCE COMPANY

2636 Elm Hill Pike Suite 300

Nashvillcm ~72h4

(A Sides Cosbipany)

--

-

POWER OF ATTORNEY

lkjsssrtt,

At! lflcst

li!~

~ht’et~tirL’eents: Thai FRONTIER INSURANCE COMPANY, a New York Corporation, having its principal olficen

Rock Hill, New York, pursuant so the following resolution, adopted by the Board of Directors of she Corporation on she 4th dayóf November1985: -

“RESOLVED, that she Chairman of the Board, the President. or any Vice President be, and hereby is. authorized to,appoint Assorneys-in.

Fact torepresent and actforand on behalf of the Company so execuiebonds,undertakings. recognizances and otherconiracts of indemnity

and wtitsngi obligatory in the nature thereof, and So attach thereto ihe corporate seal of the Company, in the transaction oths surety business;

“RESOLVED, that thesignatures and atsestations of such officers andthe seal of theCompany maybe afbixedtcanysuch Powerof Attorney

or to any-certificate relating thereto by Iacssmile, and any such Poweroh Attorney orcertiticale bearing such

tacsim~ieirgriatures

or Iacsirnile

seal shall bevahid and binding upon theCompany when so affixed with respect so any bond, undertaking reco~nizaiittaroThercontract of

indemnity or writing obligatory in ihe nature thereot -

-

-

-

“RESOLVED, that any such Attorney-in-Factdelivering a secretarial certification that the horegoing resolutions stilt be in effect may insertin

such certification She dale thereof, said date 10 be not hater

than

she date of delivery thereof by such Anorney’in -Fact.”

This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolu~on

DOESHEREBYMAKE.CONSTITUTEANDAPPOINT: David E.

Campbell, Gregory

E. Semrow, Christine Cahill

of

Nashville

in the State of

Tennessee

-

its true and awful Attorney(s)-in-Fact with full power and authority hereby conherred

in

its name place and stead 10 Sign, execute, acknowledge and

deliver in its behalf, and as its act and deed, without power of redelegation, as follows:

-

-

-

Bonds guaranteeing the fidelity of persons holding places of public or private trust; guaranteeing the performance of contracts other than

insurance policies;

and

executing or guaranteehng bonds and undertaidngs required or permitted In ahh actions or proceedings or by law

allowed; IN AN AMOUNT NOT TO EXCEED FIVE MILLION ($5,000,000.00) DOLLARS; and to bind FRONTIER INSURANCE COMPANY

thereby as fully and to the same extent as if such bond or

undertaking was

signed by the duly authorized-ofticers,of FRONTIER INSURANCE

COMPANY,

and

all the acts of said Attomey(s)’in-Fact pursuant to the authority herein given are hereby ratified and confirmed.

2Jis Biitttcse

~I~trccf,

FRONTIER INSURANCE COMPANYOI Rock HiII,New York, has caused this Power orAttorneytobe signed by its

Vice President md its Corporate seal to be affixed this

15th day of

May

-

-

1990

-

FRONTIER INSURANCE COMPANY

-

-

-

.__

BY:

State of New York

-

DAVID E. CAMPBELL Vice President

County of Sullivan

ss.:

-

On this

15th

day of

M~

before the subscriber, a Notary Public of the State of

New York in and for

the County of Sullivan,

duly commiJoned

and qualified, came

DI5~°E.CAMPBELL-of-FRONTIER INSUflANCE COMPANY

to me personally known to be the individual

and officer described

herein, and who executed the preceding Instrument, and acknowledged the

execution of

the

same, and being by

rae

duly sworn, deposed and said, that he is

the

officer of the Company aforesaid, and thatthesaai affixed-to

the preceding instrumentis the Corporate Seal of the Company, and the Corporate Seal and signature as arrofticerwere

ddy-aftt~edahd subscribed

to the said instrument by the authority

and direction

of the Corporation,

and

that the resolution of the Company referred- ta-in -the

preceding

instrument, is now

in force.

-

.

-

.

-

.3tt ‘flirstimo n~~1l1I1creaf,I have hereunto set my hand, and affixed my official seal at Rock HIts. New York. the day and year-above-written.

ALICIAA. LANESE-

Notary Public State of New York

-

Sullivan

County Clerk’s

No. 2396

-

-

.

CERTIFICATION

.

Commission Expires July 8, 2000

.

-

-

- - -.

I.JOSEPH P.LOUOHLIN.Secretaryof FRONTIER INSURANCE COMPANY0f Rock Hill, NewYork,do herebycaflhthSttht~fare2oi~R0l~~’

adopted by the Board of Directors of this Corporation and the Powers of Attorney issued pursuant thereto. aretrue-atsd correct, and that both the

Resolution and the Powers of Attorney are in full force and effect~

-

-

2Jts ~itssseu .$l7crrnf, I have hereunto set my hand and affixed the Iaciimlle seet of the corporation this

13th day Of

July

.2000..

(7

/JOSEPH P. LOUGHLIN. secretary

---

1WSUL4NCE CO

tier

41~ff4-WY

2b46LIm

HiilPik~.SuCIcSGO

- Nashville, Tenneucs

flu.

BOND RIDER

To

be attached to and form a pin of

City

ofMorris

Bond

No.

- -

—

-

158465

Dated —

-

May

3tst

_of

2000

-

-

.—,

-

,

-

,as?rincipa!,and

FRONTJTR

Tt4STTRANCE

CO~ffANY,as

Swety, in favor

of

Illinois Environmental Pm2c~onA4cncy

-

.

- -

‘,

.~asObligcc~

Ii is

undcnt~o4

azd areed thu the Bond Is

chanpd or revised

tt

t:pzrticulars as

indicated below:

The

expiration date of the bond Is hereby sat.ad,dfrotn:~5-319!

-

-

,

-

to:

9—31-05

‘

.

-

Said Bond shall be subject to nil its lerms, cgnd’stioua, and

~Jtai:t3,

eacepc as herein

expressly modified.

This Boad Rider shall become effective: July 13.

2000

.

-

IN

WITNESS WHEREOF, )‘RONTIZA

fl(STJRANCE CO~ANYhas caused its

corput

ate

seat

to be

heTeunto

affixed this:

Juty 13, 2000

-

-

--

.

-

FROr-iTtEft INSURANCE COt~WAXC

r 4’

.LLat-Z2’J

,, ‘

c4JJ

--

--

(Seal)

-

-

CtiftLtiitt Cahill.

g6samcy,a4act

-

FaT.RDF. (3rfl)

---

‘FRONTIER INSURANCE COMPANY

195 Lake Louise Marie Road

Rock Hill, New York 127734000

Financial Staten~entas otDecernber 31, 1999

I certify that the below

listed officers

were duly elected

by

the

Board of Directors orProntier InsuranceCompany

and

continue to hold the office set opposite their names.

-

-

OFFICERS

Harry

W. Rhulen

President

David E. Campbell

Senior Vice Presidesn& Assistasit Secretary

Jonathan M. Farrow

Senior Vice President

Joseph?. Loughlin

‘/ice President & Secretary

Mark H. Mishler

_.Vice President Finance- & Ire asuràr

Thomasi.

Dei~

Vice President

Gerard f4artwick

-Vice President

Richard F. Seyfarth

Vice

President&ChieflnvestsnentOfticer

MarkS. Allaben

VicePresidqnt&ChiefActuary

Jeffrey C. Gordon

Vice President & Controller

Robert l4radil

Vice President

Leon Gottlieb

Vice President

Gerald C. Steimers

Vice Pre~idt

Richted &t MarshalL....,.

Vice Prsidt

Joel P. 0db

Vice

Presidr

Joanne

S. Jenkins

Vice

Pr,si~t:

Kent B. Lombardi

Vice

Prs~&r

Edward A.- Schirick

Vice Prsidr:

Bruce 1..

Maas

-Vice Pr~:dr

Donna M. Braunsteirt

Vice Pr~jid~:

Dennis

Gilbert.

Vice

Prni~r:

Steven Zeitman

Vice Pres~J::

Lonette Pearson

Vice Pr—~~de:

I further certify that the following Financial Statemvit of the

Company

Is true, as taken from the books of the Company as of December 31, 1999.

ASSETS

Bonds

Preferred stocks

..,,

Common stocks

Real

Estate

..

Cash and short-term investments

-

Premiums and agentC balances

in course of collection

Other invested assets

-

Funds held by reinsurers

Reirisurance recoverable on loss payments

Accrued investment income

Receivable.trom parent, subsidiaries and affiliates

Federal Income

Tax

recoverable

)ther

assets

-.

I’OTAL ASSETS

LIABILITIES.

Losses

Loss adjustment expenses

-.

Taxes, licenses and fees

Unearned premiums

,,

Reinsurance payable on paid toss

and

loss adjustment etcpenses

Payable to

parent,

subsidiaries

and Affiliates

- Excess required statutory reserves

Funds held by

company

under

Reinsurance Treaties

Other liabilitIes

TOTAL

LIABILITIES

Common stock

Paid-in

and

contributed surplus

Unassigned ftinds çsurplus)

Total policyholder s

surplus

$41 l.5?9.lc-

183.93

l77.3-S~.S~

- 107.994.9

70,6.$.~3

2cos-~.5;.

(9639

TOTAL

LIABILITIES AM)

POLICYHOLDER’S SURPLUS

St.l62.l’.!-

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsImile seal of

the

Company this 19th day oi’April, 2000.

CORPORATE SEAL

STATE OF NEW YORK

COUNTY OF SULliVAN

aS?

R&KKY W.

KHULhN. President

On this l9thdayofApril 2000, berore thesubscriber,aflotaryPubhicottheState of’NewYork inand fortbeCountyofsutlivan.dulycOmmissiptted andqualified,came’H.~~l~

W.

RIULEN of FRONTIER INSURANCE COMPANY to

me

personally known

tobe the individual and officer

described herein, and

who executed the pceced’iq Intr,mtZ

and

acknowledged the execution of the same,iadbeing

duly

sworn,

deposed and said, that he is

the

ofticero(the Company aforesaid,

and that

the seal affixed to

thepTtXd;~

instnjrnent

is

the

Corporate Seal of the Company, and the

Corporate Seal and signature as-an officer

were~dütyaffixed and subscribedto the said insçrumentby Tht tUtMSy~ZC

direction

ot’the

Corporation,

and that the resolution

of

the Company,-referred to

in the preceding

instrumtnt,

is now in

force; and that said Corporation has received from ~r

Superintendent ofInsurance ofthe State ofNewyoriç a cesjiflcate of Solvency

and of its sufficiency as

surety or guarantor under Section 1111 of the

(tisurance Law ofthe Sn

ofNewYork.

-

-

. -

- -

IN TESTIMONY WHEREOF,! have hereunto set my hand, end affixed my official seal at Rock Hill, New York. the day and year above written.

-

NOTARIALSEAL

RT-FIN

(4/00)

- ~- -

MIQAA. LN4E~

- - -

NSy Pt*Ge. ~w ci Na’, mit

Suilken

County

Out’s

1239G

Con,mlasicn

Espns Julyl. ass’ -

$605,182,251

-51,484,835

116.050.441

36,017,770

51,174,695

56,165,358

42.966,965

-

0

22,508, 125

8,527,833

11,591,360

2,944,262

- 156.938.921

$1, 162. 112.834

---

Frontier

-

INSURANCE COMPANY

26)6 Elm Hill Pike. Suite 500

Nashville,TN i7214

-

(A Stodk Company)

POWER OF ATTORNEY

bisntt;

.Pd(

llltti I’~tj(Lh.t’st’ iJrt’scitts: That FRONTIER INSURANCE COMPANY, a New York Corporation. having its principal otfice :A

Rock Hill. New York. pursuant to the loflowing resolution, adopted by the Board of Directors of the Corporation on the 4th day of November, 1995:

“PESOLVED. that the Chairman 01 the Board, the President, or any Vice President be, and herebyis,authcnzsd tn4ppointAttorneys4~.

Fact’to represent and actior and on behalf ofthe Companyto execulebonds,undertakings, recognizances and-othc*gcra,~fia&arcr~

and writings obligatoryin th, nature thereof, end to attachthereto the corporate seal of the Companyin th*transacticn-otils-su.-ety-buslnes,:

‘RESOLVED, that the signatures and attestations 01 such officers and the seal of lhe Company may beaffiaod-to=anyuch~eve.ofAttMrney

orto any certificate relating thereto by facsimile, and any such Powérof Attorney or cerlilicatebearing suchtacsimile signatures orlacsimile

seal shall be valid and binding upon the Company when so affixed with reapectto any bond, undertaking,

racogninnces

rca t~-c~of

indemnity or writing obligatory in the naturethereof;

-

“RESOLVED,thatanysuchAttorney’in’Factdilivering asecretarialcertification thattheforegoingresoluticnssti!tbneffeeLnta~rlnsertin

such certification the date thereof, said date to be notlater than the date of delivery thereof by such Aflorne~-ia’Fact.”

This Power of Attorney is signed and sealed in facsimile under and by the authority of the above Resolution.

DOES HEREBY MAKE CONSTITUTE ANO APPOINT: ~

E. ~rçthU

OiziSJre ~hifl

ckegory E. ~tni

-

-

‘

Lytre

K. apca

of

D~&wi_1e

,intheStateof

‘I~T~se

-

its true and lawful Attorney(s)’in-Fact with lull power and authority hereby conferred in its name, ptaceants1easto=,i~n..xecutesacknowtedge and

deliver in its behalf, and as its act and deed, without power of rede)egation. as follows:

-

:-

-

Bonds guaranteeing the fidelity of persons holdIng places of public or private

trust; guaranteeing the pertorrnance of contracts other than

Insurance policies; and executing or guaranteeing bonds and undertakings required or permitted In all actions

or proceedings or- by liw

allowed; IN AN AMOUNT NOT TO EXCEED FIVE MILLION ($5,000,000.00) DOLLARS;

and to bind F-RONTIER.!NSURANCE-COMPANY-

thereby as fully

and to the

same extent as If such bond or

undertaking was slgneØ

by

the

duly

authorlzedofflars~fFRONTIER INSURANCE

COMPANY,

and

all the acts of

said Attomey(s).ln.Fact

pursuant to the authority herein given are hereby

ratified md confirmed.

3h~

3~1ittnc’ea m

I1trtaI, FRONTIEaINSuRANCE COMPANYof Rock Hill, New York, has caused this Power ofAttorneyto be signed by its-

Vice President and ks Corporate seal to be affixed this

15th

day of

tty

-

‘

FRONTIER INSURANCE COMPANY

-

State of New York

- -

~.

-

-

-.

BY.__

.

DAVID E. CAMPBELL, Vice President

CountyofSullivan

“

:

‘

-

On this

15th

day of

~

,

, before

the subscriber, a Notary Public of the State of

New York in and for

the County

of Sullivan, dOIy commissioned

and qualified, came

W(V~OS.

CAMPBELL of FRONTIER INSURANCE COMPANY

to me personally known to be the Individual

and officer

described herein, and

who

executed

the preceding Instrument, and acknowledged the

execution of the same, and being by me duly sworn, deposed

and said,

that he is the officer of tb’s Company aforesaiti.

and

that

the

seal affixed to

the preceding Instrument is the Corporate Seal of the Company, and the CorporatiSeal and signature as wiofficerwere duly

atflxataMsubscribed--

to the

said instrument by

the

authority

and direction of the Corporation,

and that the resolution of

the Company, referred to in

the preceding

instrument,isnowInforce.

-

‘

-

-

-

-

itt ~catimonu ~lIicrrof, I have hereUnto set my hand, and affixed my official seal at Rock Hill, New York. the day and year above Written,

-

_____

-

ALICIAA, LANESE

-

-

-

Notary Public

State of

New York

-

-

-

,

-

-

-

Sullivan County Clerk’s No.

2396

-

-

-

Commission

Expires

July

8, 2000

-

-

-

CERTIFICATION

-

-

:

-

I,JOSEPH P. LOUGHLIN, Secretary of FRONTIERINSURANCE COMPANYof Rock Hill, New York,dO

hereby~ertifY

thatthe foregoing Resolution

adopted by the Board of Directors of this Corporation and the Powers of Attorney issued pursuant thereto. are

true and correct,

and

that both the

Resolution and the Powers of Attorney are In lull force and effect

-

itt ~itngas

~l~crcc(, I have hereunto set my hand and affixed the facsimile seal of the corporation this

31st

day of

~

__

(-‘I

/JOSEPH P. LOUGHUN,

Secretary

---

V.

- ron

C/RAP/cE

tier

COMPANY

-

2636 ElM Hill Pike, 5uite 500

Nashville, Tennessec’372 14

PRINCIPAL’S ACKNOWLEDGMENT

INDIVIDUAL VERIFICATION

- -

State

or

.

-

county of

‘

-

-

On

this ____________________________day of

, ‘in the year _______________,before me

personally came

-

,

-

tome known, and known tome to be the person(s) who is

(are) described in and who executed the foregoing instrument, and acknowledges -to me that he (they) executed the sani

-

-

(Signature and

title ototflcial taking acknowledgment)

PARTNERSHIP-VERIFICATION

- -

State of

-

-

-

- County of ____________________________________________________

On this

-

-

day of

, in the year

-

-

,before me ~esonallycame

- -

-

to

me known, and knownto me to be the person who is

described in and

who ex!cuted .the foregoing instrument, and acknowledges to me that he executed the same, as and for the act ar

deed of

the said co-partnership.

-

-

-

-‘

‘

-

(Signature and title of

official-taking acLnowledgment) -

-

CORPORATE VERIFICATION

- -

State of

-

-

-

County of

-

-

On

this ____________________________day of_____________________ ,in the year

,

,before me personally came

-

-

to rue known, who, being by me duly sworn, deposes at

says

the he resides in the City

‘

that he is the

‘.

-

-

of the

-

‘

-

,the corporation described in and-which executed the foregoing

-

instrument, that he knows the sea! of the said corporation; that the seal affixed to the said instrument is such corporate seat; that it

was so affixed by the order of the-Board of Directors of said corporation, and that he signed his name thereto by likeoèder.

-

-

(Signature and

title orotl’tcial taking acknowledgment)

-.

SURETY COMPANY ACKiNOWLEDGIVIENT

State of

-

Tennessee

County

of

-

Davidson

- -

On this

31st

day of

.

May

, in the year

-

2000

,before me personally came

-

-

Christine Cahill

-

-

-

to me known to be the individual described in and who

- -

executed the

foregoing instrument and to be the Attorney-in-Fact of

FRQNTIER INSURANCE COMPANY,

which

is

to me known to be th

corporation described in the foregoing instrument, and which, by its said

Attorney-in-Fact

executed the same, and said

Attorney-in-Fact

dul

acknowledged to me that he knows the Seal of said’ Corporation; that the Seal affixed to said instrument is s

‘

ont~~,ai~..th~was49ts

affixed by order of the Board of Directors ofsaid Corporation; and that he executed the said ‘instrument as th

-

nd.deSofs~d,F~PNTIEF

INSURANCE COMPANY, therein described and for the uses and purposes therein mentioned, by virtue o

eé~ii2ower of att~r~ey

executed by said FRONTIER INSURANCE COMPANY dated

-

‘

-

-

May IS, 1

.1

Y’ ‘Y

which said power has never been revoked and is still in full force and effect; and that the said corporation ha,~ c~vedfrom the Supdrintr ‘r

of Insurance of the State of New York a certificate ofsolvency and of its sufficiency as surety orguarantorl &‘Section 327, Chapter

-

the Laws of 1939, being Chapter 28 of the Consolidated Laws ofNew York for the year I

, and that such’ eit~ficationhas not been rev~....-c

RT’PA(I/OO)

NotsryPublie

~

~

,‘~,

- -

---

&

INSURANCE

ft

ci

COMPANY

tier

2~36Elm kill Pike Suite SOO

Nashville, TN ~72I4

(A Stock Companyl

POWER OF ATTORNEY

lk~tttttttAll 3i~etti~~

tth,t’st’ tiresttttti:

That FRONTIER INSURANCE COMPANY,

a New York

Corporation.

having its principal

office

in

Rock Hill, New York. pursuant to the following resolution, adopted by the

Board of Directors of the Corporalion on

the 4th

cay

0,

November. 1985:

“RESOLVED, that the Chairman of the Board, the President, or any Vice President be. and hereby is, authorized to appoint Attorneys.in-

Fact to

represent and act br and on behalf of theCompany

to execute

bonds, undertakings. recognizances and othercontracts of indemnity

and writings oblugatoryin the nature thereof,and to attach thereto the corporateseal

of

theCompany,Jn the transaction 01113 surety business:

“RESOLVED, that the signatures and attestations of such olticers and the seal of the Company.may be affixed to any such Power

of

Attorney

or to any certificate relating thereto by facsimile, and any such Power of Attorney or certificate bearing such facsimile signatures or facsimile

seal shall be valid and binding upon theCompany when soaltixed with respectto any bond.undertaking. recognizance or other contractof

-

indemnity or writing obligatory in

the nature thereof;

-

- -

-

-

‘RESOLVED, that any such Attorney.in.Factdelivering a secretarial certification that (he foregoing resolutions still be in effect may insertin

such certification the date thereol,said date

to

be not later than the

date of

delivery

thereof by such Attorney-in.Facl:’

This Power or Attorney is signed and sealed in facsimile under and by the authority of the above Resolution.

DOESHEREBYMAKECONST1TUTEANDAPP0INT:

David E. CSpbefl, Gregory E. Semrow, Christine Cahill

of

Nashville

-

.in

the State of

Tennessee.

-

- its true.and lawful Attorney(s)-in-Fact with full power and authority hereby conferred in its name, place and stead

to

sign-execute, acknowledge and

deliver in its behalf, and as its act and deed, without power of radelegatlon,

as

follows:

-

-

Bonds guaranteeing the fidelity

of

persons

holdIng places of public or private

tmst guaranteeing the performance of

contraàts other than

Insurance policies;

and

executing or guaranteeing bonds

and

undertakings required or pem,Itted In all actions 0! proceedIngs or by law

allowed; IN AN AMOUNT NOT TO EXCEED FIVE MILLION ($5,000,000.00) DOLLAR$; and to bind FRONTiER INSURANCE

COMPANY

thereby-as fuly and to the same extent as If such bond or undertaldng was signed by the duly authorized officersof FRONTIER INSURANCE

COMPANY,

and alt

the acts of

said

Attorney(s)-hi-Fact pursuant to the authority-herein given are hereby ratified

and confirmed.

2! it

~IUttcS6 gi1ercar, FRONTIER INSURANCE COMPANYof Pock Hilt. New York. has caused this Power of Attorney to be signed by.its

‘ice President and Its Corporate seal to be affixed this

15th

day of

May

-

1990

-

--

FRONTIER INSURANCE COMPANY

-

---

-

~.__

State of New York

-

-

-

DAVI0 E. CAMPBELL Vice President

-

CountyofSullivan

“

,

.

-

-.

On this.

15th

day of

May

-

1990 ,

before

the

subscriber, a Notary Public

of

the State

of

New York in

and

for the County

of

Sullivan, duly commissioned and qualified, came DAVID E. CAMPBELL of FRONTIER INSURANCE COMPANY

to me personally known to be the individual and officer described herein, and who executed the preceding instrument,

and

acknowfedged the

execution of the same, and being by me duly sworn, deposed

and

said, that tie is the officer of the Company aforesaid, and that the ~e& affixed to

the preceding instrument Is the Corporate Seal ofthe Company, and the Corporate Seal and signature as an officer were duly affixed and subscribed

--

-

to the said Instrument by the authority and

direction

of the Cotporation, and that

the

resolution of

the

Company, referred to ‘in the preceding

instrument, is now In force.

-

-

.

- -

2ht

‘Wcetimun~

3~lIicreof,I have hereunto s~tmy hand, and affixed my official seal at Rock Hill, New York. the day and year above written.

-

-

______

-

-

ALICIAA.

LANESE

-

-

-

t4otary Public -State of New York ~

-

-

-

-

Sullivan

County Cleric’s No. 2396

.‘

‘

-

-

-

Commission Expires July

8,2000

‘ - ‘

- -

-

-

CERTIFICATION

-

-

-

.

-. - -

I, JOSEPH P. LOtJGHLIN.Secretary of ERONT1ER INSURANCE COMPANY of Rock Hill, New York.dohereby certify thatthe foregoing Resolution~

adopted by the Board

of Directors of

tilts

Coiporatlan

end

tile

Powers ofAttorney issued pursuant thereto,

are

true and correct arid thai both the

Resolution and the Powers dl Attorney are

In

lull force and effect

- -

-

3tt

~itnee,

‘~l1cirof,

havri’i,t.eunto set my hand and affixed the facsimile seal ol the corporation this -

13th

day of

July

-

2000

-

-

-

0’~

p 4-,?~

7

JOSEPH P.

LOUCHUN. Secretary

---

.irj~’tEOP’.

--

,

Illinois

.

)

COUT’ITY OP

DuPage

-

)

Onthis

31st

dayof

August

_,19,j~,beforemecame

Mark M. Caplis

-

who

executed

the preceeding

insuuxnenç

tO

me personally

~OWn,

and being

by me duly s~om,

said

that

hejshe is the

therein

described

and

authorized AflORNEY-N-PACT of

-:

-

--

COMPANY; that the

seal affixed to said insment is

the

Corporate

Seal of said Company.

IN ThSDMONY

hand and affixed

my Official

S~al

the

day and yeaz’fintabove written.

~ OFFICIAL SEACWI

-

-

NANCY L LANE

L4

~,

,

--

~

~JSLIC STATt o~iwt~oj

.

~ Y(_t4’t4..:~ CS

-

SEAL

C*4~~tStvPuthc

rx —

---

INSURANCE

ita~6sf

COMPANY

2636 Elm

F-RI! Pike, Suite 500

BOND RIDER

To

be attached to and form a part of

City

of

Morris

BondNo.

158465

Dated

May 31st

of

2000

—, as Principal,

and

FRONtIER

INSURANCE COMPANY, as Surety, in

favor of

Illinois Environmental Protection Agency

-

It is understood and agreed that the Bond is changed or revised in the particulars as indicated below:

The expiration date

of the bond is hereby amended from: 5~31-O1

to: 5-31-05

,as Obligee.

Said Bond

shall be subject to alt its terms, conditions, and

limitations, except

as herein expressly modified.

This Bond Rider

shall become effective:

July 13, 2Q00

-

N

WITNESS WHEREOF,

FRONTIER INSURANCE

affixed this:

July

13, 2000

-

COMPANY

has caused its corporate seal to be hereunto

FRONTIERINSURANCE

Chr~tinc

1

Cahill. Xttorney-inJaci

(Seal)’

FRT-WR (4/99)

---

Tile

Sunly

th.atL

pay

IM penal 3Mm Ia the ZEPA

or

rravLJ..

C0rJ:, ~ndj,niLcIailirC tin at tanc:G-vc nctLe’ci Li

ctccci-dan;e

wiili

onci

pa.lcIasuzt

c •

it

a’ ,unscll~e

.:~...i p1

,~,

(j:

Ii. -itt. it,

•IqiLu5 iii,

lenti at

it..

b,.n~,L,

ike r;l4c~pal mU, Ic. prnvldc .1 ~

eI’~i

ens. ;r

ccn’.ctivc icUan roe nuy iiie

Li

3CCCWt~nJiCev4lh,jh. cIoe.cre n~dpe.ictoluro ear.

correctlY. .,nic.n pln~~i

In, thu

04 3vacaniocd by thu bend.

‘The

Pilatciputt fnU. i; ,c

pco~idc

—he

ul’c

t’:Lncipnl:

-

-

n)

AbiMont the site:

..

-

b)

Is

a4~ud~catedb.nk.napt;

-

-

-

.

-

-

-

-

c)

FsJlc ho LIIJ

thU.

CtOZUrt OI

iii. ill:

or p~it:l:sJ’eC

a~.

0; torYteli ye adieu when orJ.~tdIn dv io

by

he Dc~rUor n

coti rt n~cu111.~~~

judrd1dlon;

-

‘

.

-

-‘

-

4)

Npll

lies

the A;c.icy lh

ot it

u.n

mill ered ciotur

r

irft.i Its ejo

,t:n:.

hul

tail..

to

c luge

1k

• iii. ci p cv

C - ~flI

(LI a

i~c

~‘flfC“1 ci, I

,

acijaii In aicuta&n:c wUl, Ike clorurt

aj~d

;unt:laIu~

can

otcuirictive itcliuii pJauis~or

:

-

‘c)

Vat gc.rr:cl iv. sedan, faLls

to Ir.iptenteit carn~iv; acUun ac ~ niui~k1’,ilpcUd wail. landfiLl unit Li

*ccurdauic,

with ~ HI. A

Code 811.fl6.

-

-

Tue

Surety øi all

pay

the

pelinI

zui-i’ cC

thu. bc’ud

It. its ErA ~ ncllfy the ItPA fuji

intentli It’ rrnvhle

clclAurc

nut? pc’a;vIvi~uuc

cut-c u.’

corjtCtiYt odd on

In

~eord4ticawith the cicijun. a’id

puntciUsUt car:

cit vbrr’cdlivc adliun

phuts

(or

the .ili

a svilFuiii ~U

~Isys

ill:

r lii: IEI’,t

mail’

nc’Icc

to Ihe Sunny hint

nit

Thindpah liii

taii:d

ii RI pNV ida dtQ.illrt and ycatd&tsu~ tat.

t’r

corccti—c iwtlt’iu. l’nyuncuit

~huru

I.~

ni-~~k-by

clint ur 4r~r

p~yabtc

Ca lii:

!tate

of

ILL,,uis. L~tull

ill

Ck’sutc

nuud

!‘u,ttio.u.

Fiji

it!,

- -

it he

Surety

it ath!lei

fle A~cncyliar it jiilauicli It’ piuvLU.

ilo~urv;u 4

poflclnitre

C vt t’r

C

nrrtc is

vt

ut’

tini

t.

tin

cii Iii. $

it

ret_v iii u.r tb

t’lu,tj(C and pa enclosure

ccitt or

eontctiv.

~:iii.n

wHlluin 60

dnys - after iii IXPA in iuiLcd nueke to the Surety

tutu

the

Priucir:ul (tikil

pro

vid i cLosure Lcd pcutcloiurc c*i. or eovr~cUv: nI(t’n. lb. Surety must cunipL.t. cLn.qmr~nit4 ?‘tflclosu;t

taLe 0;

CIIVFCIIVC at’ilui~

clcCatd ice whit the

clnsun~

amid-posh:Losure cS

or cotreutLYc •cdvi,

ph.uis.

tiE pay Iii. ~II4 sun,.

-

hit

linbWty nit rho Surely iii

nil not he 4sulrarzc~by nty payment

tic sun.~cs,h.p,

cii

(7ayuuu.tii.i

tiid

a..:

alit1

until audi ~

“f ln.yuuncIii

ebutU .uitounc

Li, the

a~8resntcIc, the penal .u~tia! the

bu’:4. La ito event

ulrnt~Ike

cIñj1MJouj of

she

Surety

exceed

lii. unioulil .4

ilie

j’cu)

sun!.

-‘

-

-

•p~bqnuc(

.u(inII expiie ott Ihc ...3js~dny

tiC

v

_..

.~1.

zrovid.cu. however, tiunt If the ?riuu j’4 (ails Sc. pu-uwhile •tibclUnIc Cini,iitliI

n~:uVnnUrprior In hhs tzpiraiirit date, n~d

time

A

nail, native

tiC

atwlt

failure tu lilt Surery wi chiLi 30 tIny: icc, ,ucli 4n1e,

Ike

lerri, tuf

ijil.t bond

;hnU he

nutein an ical ly c.~lcnde~t

tu~

one tweLvu’.rfltIiIIli çcdod tinning

with (lie glare nt

expirad

on-et’thc-bcncl.

-

- -

lii. l’ruuvr~,qI IIIA7 tCrnIiIICIg himis bond by

•e:’diite

wnili.i. notice in di. Surely; pruMliLed. In’.evei. Uiat ho sudi 11011cc

smut

l.vsIuuIIt

(tc~ilve

until lii.

Stsramy

tece Yes written autltorfr.stfc,c tot leislIinntloit

cut

1k. boned trcinc ha LEL’A.

-

I., WUuicn Wije real, iS. PWsctpal Mel Suniy have

eac~tm,nlIkic Futt’qirure Bone! tin4 have

stlb:d lid, se4s tnt

the

dale .cc,t tenth il~.’

TI, a penouts whine lignatULaJ ;ppc

it

bcivw ctItif’

tin.,: cli cy

.rc awihudnet Ia c,cwgl.

this AW tly buetti ore I~hit4Cof chit

Prinivipul intl

Surety,

PRINCIPAL

Cty of ~brris

-

~‘

co~Mu soar?

-

~

N.II~.T E~Uiti~Z

T 4

Nan.

/

- .

Addren ~

Elm MIII Puce, Suite

____

Robert T. Fe

--

-:

-

l~tivifle,

‘11437214.

Slit

flirt. cui,lioi j~~j

YCth

lilly

Mayor, City

pf

Morris

I

CO

-

‘P

- - -

-

_____-

-—

-

Orta ~ffi

.

-

-

-

-

Ti;le

-

-.

‘--

-‘

-

CrqwnI: teal

--

L3ai,d

pranittitit

S ________

(28

---

.._-,;,. cii a,~odix A Fw.~ci4 Asnnacc Pc~a

-

-

-

-

r

fl)uflc.ncn ~ PcrCumn..rco

ScM

.Siie,;

LEFA Sue Nunib.r~

Acidren:

Aoic’ealii ~ruuwnntItcdby

nut’

rncy~

Sit, N.8,tibcs:

mtLiYsc:

PERFQRMAr~cEDOND

L

-

Aniciuni

gu~nntnd

by thit bated:

(‘lens attache a ~eparnrC

p.tge

it mon

ii nitije4

for all .Llc,.

T~’t~I1t:lal s”ni cii

bring?;

S_iC. GEl.

.c~-iy~.

kt,,id iiunnbcr

158465

I

lit I

‘risrc:p;ii ird the ~p

rtty pEnn.

in in pay the ihUhni, Envimi.ise,nmit

re,’cath’n

-

A ~.meey

(“LEPA”)

the

•~flv~ptmun

h stint attic ~s-

(jl.

~.r

S’jrtiy

rcr’tde c elusuir

anti

p,nICitisU(t e.~(aor uatucvti it pttioi~

(cii rilehi

pit.

iii .jceurdwc

• whit III. chu,c’rv suit rMAwttt4h1~

- i;c

.r ci’rrcct in act un pinut In I

iii

sic

to mbic payii itni

at ii ~. obU~uitutu the t’iiumvipal w

U

Suant

y

jointly nullt xc

vcpilly

bind

ii,’

ci.’’.

thy

Li tic

~n. xe~itecils,

nUn’tutu Sri at vi’. puuuc~~ursact!

‘tic as lit Pr~ncipcci I

ii cit. unck Sect

kit.

2 (itt) eel lice Env

rctiuncn!rt Prittectlote

i\’~I

ciii. Re Si iii -

I U9 1,

c-li III

ia

put.

till I I

4 iS lU_S 5/2 Rd)U ~o

j~ve

A pettiut

to

iei~ducta wauic ihispocual opnnlloci:

-

-\hruc

-ia thu I’riiicirumi

ic reviti ed, aticher Scvdt’rt 21.1

.,r

iii.’ Cnvkonuneniat luiumntIitin A~i,I,.. (imutiuft flii;ut;~’huti

n..surj’iw~

icr t’ltiwtiuvi’i?I

.i..(..Iliu.jft c~icc,rcuntthit uutlc’im: huet

_

-

e’lit’,eaj tue Surety

ii hivetuciti

by ii,. UUiic.~Pepatsnst,ti cit laiitanciwc;

~hgitto cli. Pt~twtpaINtiI Su nsy

ngIte

thor

lIt-is hooch ,haLi

I

pt’cnied

by the

laws

.(

mite Stale

St Illinois;

3~mebond ~x:cunod:

fr4Py

11 ,

—

-

-

ectlvc date: -

.

~

-

Tyyc

of cirgcnt:alion:

Stilt:

s.f

bm~nr~iion:

SU!t1Y

- 4”~y fl

~flPIh

city of fl~jLs

-

3~~o.’isee

?‘ft1rttCtPalttY

-

Strg~t5

Morris,

Illinois

-

-

-

—Mb~

Wsura~ce Company

60450.

bond: -

.

-

-

-

-

-

-

L,PW.Q6000°’

—

Grwidy County

-

-

-

— -.

-?~rriR

C~

‘tyj~ndf’11 (Coçp. Office)

-

-

-__139O~~_Mh1&nd~~q,~_

.

—- -

-—

Illinois

50S2’7

-

.

$_1OAIR1.53fl.OO

127

---

Fran

INSURANCE COMPANY

tier

- -

263 6Thn RU/FLU,

Suite 500

-

Nashville, Tanning. 37214

-

-

- --

-.

BONDRIDER

-

To be attached to and farm

a

part of Ctostsre’Post Closure Bond

-

Bond No.

-

91501

ad

h4

-

of

-

June, 1996

Community LwdtalI Corporation -

-

-

. as Principal and

-

vaO?craa

INSURANCE COMPANY, as Surety, 1st

favor of

Illinois Ezvfronrncntal Protection Ateacy

-

-

-

-

-

. ~as

Obiign.

It is

understood and

acted that

the

Bond i~changed or rcviscd in

the

pa~ub.’s

as

inthcated below: -

The ezeiration date at

thi,

bond

is

hereby anisaded to 6/14/05.

-

- -

Said Bond

shall be

subject

to

all its terms, conditions, and limitations, except as hercin expressly moduie4.

This

Bond

Rider shell

becogee effective:

Italy 14.2000

-

-

-

IN

WITNESS

WIEflop, P’RONTWR ~flS1Jn2~E

COt,QAflY -has caused it corporate seat to be E&etmto

pJ~cedthis: July 2Q~2000

-

-

-

-

- -

-

- -

ncwrin msunsci

COMPANY

-

-

-

-

-

-

-

.

~

--

--

(Seal)

-

‘

auifre

Cahill.

Auomq-iaEaet

FRT-RDR

(L’9)

-

---

MARK

A. LAROSE

JOSEPK A. 805cc

FRANK E. Di VITO

OF COUNSEL

HON. ANTHONY).

BOSCO mRerj

jOHN 4. AUOTO

Am)MuTrcnlp,

V.’t~CUMSMAUL)

IOSEPHC. ALlOW

-

-

AUA,thTtFi)te~

wiSCOM~inCMLV

THELAW OFFICES OF

LAROSE

&

Bosco,. LTD.

Ju1y24,2000

-

-

734 N. WELLS STREET -

CHICAGO, IL 60610

-

(312) 642-44~4

—

FAX (3~2 642~O434

tarot

ejndb~isc:oSaot-corn

By Fax (217)782-9837 &

Recular

Mail

Mr. John Kim

- -

Assistanc Counsel

Division of Legal Counsel

Illinois Environmental Protection Agency

102! N. Grand Avenue East

Springfietd,IL 62794-9216

-

Re:

Morris

Cpmniunjtv

Landfill

Dear John:

-

-

-

Enclosed is a copy of the Bored

Rider for Bond

No. 91507 amending the expiration date on

that bond to June 14, 2005. As you may recall, the EPA has theoriginal certificate ofextension on

this bond in its possession and I have the original rider in rnypossessioit By copy of this letter,-!

am forwarding the same to ~bhnTaylor for his approval.

-

also have in my po~scssionthe original bonds and riders for Bond Nos.

158465

Please contact me as soon as possible rega±dingproviding the draft.permits, and a date

the originals bonds and the final permit.

-

-

MALImk

enclosure

Very truly yours,

Mark A LaRose

and 158466.

to cxçhangé

cc:

Mr. John Taylor (by fax (217) 524-3291)

---

V

-

4oiit2er

INSURANCE COMPANY

2636 Elm Hill Pike Suite 500

Nashville, TN ~72i4

-

(A Slack Companyi

-

POWER OF ATTORNEY

ititintti

All

3’tlttt

itlu

ZID’st’ !JrcsL’ute:

That FRONTIER INSURANCE COMPANY, a New York Corporation, hav’n; its principal

of!jce

:n

Rock

Hill.

New Yotk,pursuant to the laIlo~ngresolulion. adopted by the Board of Directors of Ihe Corporition On the 4th day o~November;-1-9&S-

“RESOLVED,

that the Chairman of the Board, the President, or any Vice President be. and hereby is, authbrizedtoapp-:

nt

Attorneys-in.

Facttorepresentand actfor and onbehatlot ~

and wriiingsObligatory in the nature theroof,and to

attach thereto inc corporate

seat ~

-

“RESOLVED,

that the signaturesandattestations of such officers and the seal or theCompanymaybe ~

~-wtroFAttcr.iey-

or to any certificate relating-thereto byfacsimiie and any such Power ofAttorney or certiticatebearing such !ace~.~i~s

ei-gna:-~resorfacsin,ile

seat shatl be-valid and binding upon theCornpany when so atfixed with respectto any bond, undertaking, recc~e~iun:e~.’~thercontract of

Indemnity or writing obligatory in the nature thereof:

‘RESOLVED, that anysuchAttorney.in.Factdetiverjngasecretariatcert,ficationthattheforegoing ~

such certification the date thereof, said date to be not later than the date of delivery thereot by such Attorney.in.Faot.”

-

-

This Power of Attorney is sign-ed and sealed in facsimile under and by the authority of the above Resolutio’,,

-

DOES HEREBY MAKE.CONSTITUTEANDAPPOIN’r:

David E. Campbell, Gregory E. Sentrow, Christine Cahill

of

Nashville

-

-

,in the state Of

Tennessee

- - -

its true and lawful Attorney(s)’in.Fact with full power and authority hereby conferred in its name, place ano steadto s n,execáe;ackj’i*wtedge and

deliver in its behalf, and as its act and deed, without power or redelegation, as foltows:

-

Bonds guaranteeing the fidelity of persons holding places

of public or private Uust; guaranteeing the

~

insurance policies; and execijdng or guaranteeing bonds and undertakIngs required

or p.rmitted In ~

allowed;

IN AN

AMOUNT NOT TO EXCEED

FIVE MILLION ($5,000,000.00) DOLLARS: and to bind

FRQNTtERiNSu.RANcE~CcwpA

NY

thereby as fully and to the same extent as If such bond or undertaking was signed by the duly authorized

otsv~.n.fFMONrtERdNSUPANCE.

COMPANY,

and

all the acts of said Attomey(s).in.Fact pursuant to the authority herein given are hereby

r-a’~fiod-a~dcon~rrned.

~ltt Blitucee

~Itercaf, FRONTIERINSURANCECOMPANY0I RockHilt,t4ewYorkjtascausedthis Powr-o!-Attorneytob~esqnedbyits

Vice President and its Corporate seat to be affixed this

15th

day or

May

‘

1990

-

-

FRONTIER INSURANCE COMPANY

-

--

-

BY:

-

-

State of New York

DAVID E. CAMPBEU,,, Vice President -

County ol Sullivan

es.:

-

On this

15th

day

of’

May

-

-

-, 1990. before the

subscriber,

a’Notary P~.biic6!

the

State of

New York in

and for the County

of Sullivan, duty commissioned and qualified, came

OAVID-E.

CAMPBELL

of FRONTIER

INSURANCE COMPANY

to me personally known to be the individual

and officer described herein,

and who executed

the

preceding instrument, and acknowledged

the

execution of the same, and being byrne duly

sworn,

deposed and jaid, that he Is the officer

of the

Company aforesaid, and that tht seal affixed to

the preceding instrument is the Corporate Seal of the Company, and the Corporate Seal and signalure as an officer were duly affix~d

antsubscribed-

to the said instrument by.the

authority and

arection of the Corporation,

and

that the resoludon of tht Company, røerred to in

the preceding

instrument, is now in force,

-

-

-

-

,3Iti ‘~ceUntun~

I1l~crcaf,I

have hereunto set my hand, and affixed my ofticiat seal at Rock Hilt, New York, the day and year above written.

,ALICIAA. LANESE

.

‘

Notary Public

State

of New Yoric

-

-

Sullivan

County

Clerks No. 2396

-

-

-

Commission ExpIres

July 8, 2000 - -

-

-

CERTIFICATION

-

-

. -

I, JOSEPH P. LOUGHLIN. Secretary of

FRONTIER

tNSURANCE COMPANY of Rock Hilt.New york.do hereby certify thattfle foregoing Resolution -

adopted by the Board of Directors ci this Corporation and the Powers of.Attorney issued pursuant thereto, are true and correct and

that bth the

Resolution and the Powers of Attorney are In lull Iorce snd eflect. -

-

-

-

3it-jflitneee ~ljcrraf,

I hay, hereunto s,t my hand and affixed the facsimile seal of the corporation this

20th

day of

-July

-

2~o.

EPH P. LOUGHLIN. Secretary

(I

---

“Fl--

ftwi

INSURANCE COMPANY

tier

2636 £hn Hill

Pike, Suite 500

-

Nashville. Tennessee 37214

BOND RIDER

-To be attached to and form a part of Closure/PostClosure Bond

-

Bond No. -

91507

-

Dated __________________of

-

June, 1996

Community Landfill Corporation

-

as Principal, and

FRONTIER INSURANCE COMPA,NY~

as Surety, in favor of Illinois Environmental Protection Agency

-

--

-

-

-

-

as Obligee.

It is understood and agreed that the Bond is changed or revised in the particulars as indicated below:

The expiration date of this bond Is hereby amended to 6/14/05.

-

Said Bond shalt be subj~ctto alt its terms, conditions, and Limitations, except as herein

ex~ressly

modified.

-

This Bond Rider shalt become effective: July 14. 2000

-

-

-

N

WITNESS WHEREOF,

FRONTIER INSURANCE COMPANY has caused its cOrporate seat to

be hereunto

affixedthis: July 20,2000

-

-.

-

-

-

-

-

FRONTIER

INSURANCE

COMPANY

-

-

~_A~jit~_c_~

-

(Seal)

-

‘

Chn/ine Cahill, Attdrney.1n-FaCt

-

-

F&T-ItOR

(4/99)

---

INSURANCE COMPANY

tier

2636 Elm Kill Pike, Suite

500

Nashville, TN 37214

IA Stan company)

POWER OF ATTORNEY

lthttttu idi

iittti ~U

EI1L~SL’Iirvscttte: That FRONTIER

INSURANCE COMPANY, a New

York Corporation, having its prlncipaf of$ice :n

Rock Hill, New

York.

Pursuant to the following resolution, adopted by~fneBoard

of Oirectors

of the Corporationon the 4th day of

No~e-rn-~sr.

1985-

“RESOLVED. that

the

Chairman

at the Board,

the President. or any

Vice

President be. and hereby is, authorized 10 appoint Attorneys-in.

Fact to

represent

and act for and on beriatf

of the Company to executebands. undertakings, recognizançesand other conLraas~l4naen~nity

and

writings obigatoryn the mature thereof,

and to attach theretothecorporate

seat of

the

Company_in ~

“RESOLVED. That the

signatures and

artestations

of such officers arid the ~

or me Company

may

be affixed to

any such Po~,erof Attorney

or to

any certiticate retating theretoby facsimile,

and any such Powerof Attorney or certificate

bOring such facsimile signatures or facs,mife

seal shall bevalid and binding v~qnthe Company when so affixedwith respectto any bond, undertaking:

recognizance or other contract of

indemnity or writing obligatory in the nature thereof:

-

RESOLVED, that any suchAttorney.h~.Factdeliveririga secretarial cerbflcation tnat the foregoing resolwticntslilt be in effect may insertin

such certification the date threat said date

to

be

not

later than fhe date of deiiie(y thereof by suthh Arorney.in.Fact.’

-

This Power of Attorney is~signedan4 sealed in facsimile under and by the authority of

the above Resolution.

DOESHEREBYMAXE.CONSTITUTEANOAPpOINT ~vid E. ~rteU

OtisUxe ~ahifl &apzy E. Serroj

-

-

-

LyrineK.aka

-

-

-

~

-

,intheStateol

1~TE5S~

-

its true and lawful Attorney(sl.in.Fact with futi power and authdrity hereby conferred in its name, place and stead to sign,.executeacknowledge and

deliver in its behalf. end as its act and deed,

without power of

redetegation, as follows:

-

-

.

-

Bonds guaranteeing the fideuty at

persons holding places of

public orpr(vate Dust guaranteeing the performance of contracts other than

insurance policies:

and executing or guaranteeing bonds and undertakings required or permitted

in all

actions or proceedings

or by law

alfowed; IN AN AMOUNT NdT TO

EXCEED

FIVE MILLION (SS,000,000.0O)

DOLLARS; and to

bind FRONTIER INSURANCE COMPANY

theisby as fulty and

to

the same

extent nil such bond or undertaking was signed by

the duly authorized officersof FRONTIER INSURANCE

COMPANY,

and

all the

acts of

said

Attorney(s)-In-Fact pursuant to

the

authority herein

given ar, hereby ratified

and

confirmed.

- -

itt ~ittteee ~Ilerccf, FRQNTIERINSIJRANCE COMPANY of Rock Hill, New York.hascaused this Power of Attorney tobe signed by its

Vice President and

its

Corporate seal to be affixed this

15th

day

of

t4iy

-

-

-

-

FRONTIER INSURANCE COMPANY -

BY:

-

State of New York

.

.

DAVID E. CAMPBELL Vice Président

County of Sullivan

:

-

.

-

On this

15th

- day of

~y

,

.

before

the subscriber, a Notary Public of the State of

New York in

and lot the County

of

Sullivan.

duly commissioned and qualified,

came

DAVID E. CAMPBELL

of

FRONTIER INSURANCE COMPANY

to me personally known to be

the

individual

and officer described herein. and

who executed the preceding Instrument, and acknowledged the

execution

of the same, and being by me

duly sworn, deposed

and

said, that he

is the

officer

of the Company aforesaid, and that

the, seal affixed to

the

preceding Instrumentis the Corporate Seal of

the Company, and the

Corporate Seal and signature as

An officer were duly affixed And subscribed

to

the

said instrument by

the authority

and direction

of the Corporation, and that the resolution of the

Company, referred to in the preceding

instrument,

isnowin

force.

-

-

-

-

-

Jut ~Ecatimutt~

~lI~ereof,

I have hereunto set my hand, and affixed my official seal at Rock Hilt. New York. the day and year above written.

ALICIAA.

LANESE

-

-

-

4ctary

Public State of New York

- -

Sullivan

County

CleriCs

No.

2396

-

Commis4ion ExpIres July 8, 2000.

-

CERTIFICATION

--

-

-

I,.JOSEPH

P.

LOUGHLJN.Secretaryol FRONTIERIN$IJRANCE

COMPANY

of

Rock Hill, New York. dohereby certIfy thstthe Foregoing Resolution

adopted by the Board of Directors of this Corporation and the Powers of Attorney

issued

pursuant thereto, are sue and correct, and that bot~ithe

Resolution and the Powers of Attorney are in full force and effect.

JTtt

~itnrse

$~crraf, I have hereunlo set my hand and affixed

the

facsimile seat of thecorporatton this

31st

day of

(7

-

I

JOSEPH P. LOUGHUN. Secretary

---

/c4c,~g,ç

(~c)t’1r11~dtj,ni

-

..

-

FT,tcmc,4( 4c?t~’etc-c-___

-

-

FRONTIERINSURANCE COMPANY

-

-

- - -

Continuation Certificate

- -

To be attached to Bond described below, executed by FRONTIER INSURANCE

COMPANY, as Surety, Community Landfill Corporation as

Principal,

Illinois Environmental

Protection Agency as Obligee, on Bond No. 91507 , a Cbsure/Post Closure Bond -

-

(type of bond)

-

Said principal and said Surety hereby agree that the term thereof be and hereby is

extended from the

14th

day of

June

--

2000.

tothe

14th

dayof

June

,2001

subject to all other provisions, conditions and limitations of said bond upon the express

conditidn that the Surety’s liability thereunder during the original term of said bond and

during any extended term thereof shall not be cumulative and shall in no event exceed the

sum of $ 1,439,720100

-

IN WITNESS THEREOF, the said Principal and said Surety have signed or caused

this Certifiëate to be duly signed and their respective seals to be hereto affixed this 31st

day of

May

,2000.

-.

.

-

-

- Community Landfill Corporation

- -

-

(seal)

-

-

-

-

-

FRONTIER INSURANCE COMPANY

-

(seal)

-

By

~2AILL4LtnLA/i Iti)

-- -

Premium

$ 28,794.40

‘~hristineCahill, Attornej-ln-FaCt

. - -

n:\sha red\bonds\bonds\contcettflc

---

TYSURANCE AND

&

ASSOCIATES,.

-

-

JUN 1 47flQQ