Injuries to natural resources from the release of hazardous substances
into aquatic environments have led to hundreds of millions of dollars
in compensatory damages awarded under the Comprehensive Environmental
Response, Compensation and Liability Act (CERCLA) and other legislati
on. The institutional mechanisms for negotiating and carrying out the
terms of CERCLA natural resource settlements are still in their infanc
y, and each case has a unique set of injuries, assigned damages, payou
t schedules, trustee council membership and operating procedures, and
environmental conditions and constraints. One of the settlements that
has made significant progress toward large-scale habitat enhancement h
as occurred in Elliott Bay, a busy seriously impacted urban harbor in
Washington State. The Elliott Bay case is unique among natural resourc
e injury settlements because of the active involvement of two local go
vernments, the City of Seattle, and Metro, who were named as defendant
s in a lawsuit brought by the National Oceanic and Atmospheric Adminis
tration (NOAA) on behalf of the natural resource trustees of Elliott B
ay. Both local governments have maintained, and continue to operate, o
utfalls that discharge into Elliott Bay, and both entities were subjec
t to attempts to recover damages under CERCLA. Following the filing of
the lawsuit over injuries to the natural resources of the estuary, al
leged to have resulted from the operation of these outfalls, the parti
es involved negotiated a consent decree settlement. The Elliott Bay/Du
wamish Restoration Program has established a process to redress some o
f the injuries that were attributed to the operation of these outfalls
.