The purpose of this memorandum and its attachments is to provide guidance on administrative response cost settlements entered under Section 122(h)(1) of the Comprehensive Environmental Response, Compensation, and Liability Act, and on administrative 'cashout' settlements with peripheral parties under Section 122(h)(1) of CERLCA and the authority of the Attorney General. Part I of this memorandum provides an overview of the guidance and explains the context in which the attached model settlements should be used. Part II of this memorandum explains the statutory provision, defines relevant terms, discusses the various types of administrative response cost settlements and the scope of covenants not to sue and reservations of rights in those settlements, provides guidance on amount of payment and use of premiums in future cost settlements, provides guidance on amount of payment and use of premiums in future cost settlements, and briefly discusses contribution protection clauses in such settlements. Part III outlines how administrative response cost settlements should be documented by the Regions and, when necessary, reviewed and approved by the Department of Justice ('DOJ' or 'the Department') and/or the Office of Enforcement and Compliance Assurance in EPA Headquarters ('OECA'). part IV explains the public comment requirements for administrative response cost settlements. Finally, Part V addresses enforcement of such settlements.