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January 2008 - The global supplier of specialty
chemicals W.R. Grace has agreed to a $34 million bankruptcy settlement for
cleanup costs at 32 Superfund sites across the country, the U.S. Justice
Department said Wednesday.
The federal government determined that W.R. Grace contributed to the
contamination at these 32 sites.
The action settles a bankruptcy claim brought by the federal government to
recover money for Superfund site cleanup. Superfund is the federal program
that investigates and cleans up the most complex uncontrolled or abandoned
hazardous waste sites in the country.
With corporate headquarters in Columbia, Maryland, and employees in 40
countries, the company manufactures construction chemicals, building
materials and chemical additives, catalysts used by petroleum refineries,
and chemicals used in ink jet paper, paints, toothpastes, rubber
compounds, insulated glass, as well as in edible oil refining.
One of the 32 sites covered in the settlement is the R&H Oil Company site,
an inactive refinery and gasoline blending facility in a densely populated
area of San Antonio, Texas.
Several spills and other releases of petroleum waste during operations
have resulted in the contamination of shallow ground water beneath the
facility and threaten nearby municipal drinking water wells used by the
city of San Antonio.
Another of the contaminated sites is surrounded by cattle grazing land in
Santa Barbara County, California. From 1973 to 1989, the Casmalia
Resources Hazardous Waste Management Facility on this site accepted more
than 4.5 billion pounds of industrial and commercial wastes. The wastes
included pesticides, solvents, acids, metals, caustics, cyanide, and
non-liquid polychlorinated biphenyls.
The owners/operators stopped accepting waste at the facility in 1989, and
abandoned efforts to properly close and clean up the site in the early
1990s.
The accumulation of problems proved too much for the financial resources
of W.R. Grace and 61 affiliated companies. They filed for bankruptcy in
April 2001, but the federal government did not give up its efforts to
recover some money for cleanup of the contaminated sites.
"Bankruptcy is not a safe haven to avoid environmental responsibilities,"
said Catherine McCabe, principal deputy assistant administrator for the
U.S. Environmental Protection Agency's Office of Enforcement and
Compliance Assurance. "EPA will keep pursuing companies who pollute the
environment."
In March 2003, the EPA filed claims against the company to recover past
and future cleanup costs.
The $34 million settlement will be used to reimburse EPA for past costs
and to pay for future costs associated with cleaning up at hazardous waste
sites in 18 states.
The settlement agreement will be lodged in the U.S. Bankruptcy Court for
the District of Delaware and is subject to court approval after a 30-day
public comment period.
Upon approval of the bankruptcy court, EPA will have an allowed claim in
Grace's bankruptcy. Grace's plan of reorganization will determine the
extent to which allowed claims will be paid.
This settlement agreement does not resolve environmental claims related to
the cleanup of the Libby Asbestos Site in Libby, Montana, and the Curtis
Bay Site near Baltimore. These claims are still pending.
"This settlement will make money available to substantially help the
cleanup of many Superfund sites around the country," said Ronald Tenpas,
assistant attorney general for the Justice Department's Environment and
Natural Resources Division. "This settlement is a good outcome for both
the taxpayers and the environment."
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