IN THE UNITED STATES COURT OF APPEALS
               FOR THE DISTRICT OF COLUMBIA CIRCUIT

_______________________________________
                                       )
EDISON ELECTRIC INSTITUTE, et al.,     )
                                       )
     Petitioners,                      )
v.                                     )        No. 93-1474
                                       )
UNITED STATES ENVIRONMENTAL            )
PROTECTION AGENCY,                     )
                                       )
     Respondent.                       )
_______________________________________)

                        SETTLEMENT AGREEMENT

     WHEREAS, Edison Electric Institute ("EEI") filed the instant

petition for review of the final rule promulgated by the United

States Environmental Protection Agency ("EPA") on May 3, 1993 (58

Fed. Reg. 26,420), which corrects technical errors and provides

clarifying amendments to the rule promulgated by EPA, "Hazardous

Waste Management System; Identification and Listing of Hazardous

Waste; Recycled Used Oil Management Standards." 57 Fed. Reg.

41,566 (Sept. 10, 1992) (codified as 40 C.F.R. Part 279);

     WHEREAS, EPA represents that the amendment of 40 C.F.R. 

279.10(i) in 1993 was intended to reflect the complementary

nature of the Resource Conservation and Recovery Act ("RCRA") and

the Toxic Substances Control Act ("TSCA") regulations applicable

to used oils containing less than 50 parts per million ("ppm")

polychlorinated biphenyls ("PCBs") (see 58 Fed. Reg. 26,420,

26,423 (May 3, 1993); it was not intended, nor should it be

construed, to regulate under Part 279 PCB-contaminated used oils

at levels of 50 ppm or greater, which are regulated under Part

761 of the TSCA regulations;

     WHEREAS, proceedings in this matter have been stayed to

permit settlement negotiations that may resolve this matter;

     WHEREAS, EEI and EPA have determined that this matter should

be settled without further litigation;

     NOW THEREFORE, IT IS AGREED AS FOLLOWS:

     1.   EPA shall publish a proposal to amend 40 C.F.R.

 279.10(i) to clarify that used oils subject to regulation under

TSCA, i.e., those containing PCBs at levels of 50 ppm or greater

are not subject to the requirements of 40 C.F.R. Part 279, which

was promulgated under RCRA.

     2.   EPA shall issue an interpretative letter confirming its

view that materials contaminated with used oil, such as soil or

clay-based sorbents which provide little or no energy when burned

(i.e., materials with a low British Thermal Units ("BTU") value),

are not subject to Part 279, if, in addition to a low BTU value,

such contaminated materials do not contain any visible free

flowing oil when they are burned for destruction.

     3.   If EPA promulgates a final rule consistent with the

proposal described in Paragraph 1, EEI shall move to dismiss its

petition with prejudice within thirty days of the later of (1)

the effective date of the amended rule, or (2) the issuance of

the letter described in Paragraph 2. If EEI does not timely file

such a motion, EPA will so move and EEI will not oppose the

motion.

     4.   If EPA adopts a final rule that is not consistent with

the proposal described in Paragraph 1, EEI shall file a motion

for an order governing further proceedings in this matter within

thirty days of final action on that rulemaking.  If EEI does not

timely file such a motion, EPA may so move.

     5.   In the event that EPA does not accomplish the items set

forth in Paragraphs 1 and 2 above, EEI's sole remedy for EPA's

failure to complete the actions described in those paragraphs

shall be the right to reactivate this litigation and to seek

imposition of a schedule for briefing.

     6.   Nothing in the terms of this Agreement shall be

construed to limit or modify the discretion afforded to EPA by

RCRA, TSCA, or the general principles of administrative law.

     7.   Any obligations of EPA to obligate or expend funds

under this Agreement are subject to the availability of

appropriations in accordance with the Anti-Deficiency Act, 31

U.S.C.  1341.

     8.   Except as expressly provided in this Agreement, none of

the parties waives or relinquishes any legal rights, claims, or

defenses it may have.  Notwithstanding the foregoing, if EPA

amends 40 C.F.R.  279.10 in conformance with the proposal

described in Paragraph 1, EEI will not exercise whatever rights

it may have pursuant to section 7006 of RCRA, 42 U.S.C.  6976,

or otherwise, to seek review of that amendment to the extent that

the amendment provides that used oils containing PCBs at levels

of 50 ppm or greater are not subject to the requirements of 40

C.F.R. Part 279.  This waiver would not apply to other issues, if

any, addressed by that rulemaking.

     9.   All parties shall bear their own costs.

SO AGREED:

                              Assistant Attorney General
                              Environment and Natural Resources
                              Division



___________________________   ___________________________________
DOUGLAS H. GREEN              EILEEN T. MCDONOUGH
MARIANNE MANCINO THIEDE       Environmental Defense Section
Piper & Marbury, L.L.P.            U.S. Department of Justice
1200 Nineteenth Street, N.W.  10th St. & Pennsylvania Ave., N.W.
Washington, D.C. 20036        Washington, D.C. 20530
(202) 861-3900                (202) 514-3126

DATED:  ___________________
                              ___________________________________
                              ALEXANDER SCHMANDT
                              Office of General Counsel
                              U.S. Environmental Protection
                                   Agency
                              401 M Street, S.W. (LE-132)
                              Washington, D.C. 20460
                              (202) 260-1708

                              DATED:  ___________________