39.6 Case Problem with Sample Answer. William Gurley was the president and majority stockholder in Gurley Refining Co. (GRC). GRC bought used oil, treated it, and sold it. The refining process created a by-product residue of oily waste.

GRC disposed of this waste by dumping it at, among other locations, a landfill in West Memphis, Arkansas. In February 1992, after detecting hazardous chemicals at the site, the Environmental Protection Agency (EPA) asked Gurley about his assets, the generators of the material disposed of at the landfill, site operations, and the structure of GRC. Gurley refused to respond, except to suggest that the EPA ask GRC. In October, the EPA placed the site on its clean-up list and again asked Gurley for information. When he still refused to respond, the EPA filed a suit in a federal district court against him, asking the court to impose a civil penalty. In February 1999, Gurley finally answered the EPA’s questions. Under CERCLA, a court may impose a civil penalty “not to exceed $25,000 for each day of noncompliance against any person who unreasonably fails to comply” with an information request. Should the court assess a penalty in this case? Why or why not? [United States v. Gurley, 384 F.3d 316 (6th Cir. 2004)]