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Mesothelioma News | 2008
W.R. Grace will Pay Large Amount for Asbestos Cleanup
A global supplier of specialty chemicals, W.R. Grace, has agreed to pay $250 million, the largest sum in the history of the Superfund program, as reimbursement to the federal government for the costs of the investigation and cleanup of asbestos contamination in Libby, Montana. This was recently announced by the Environmental Protection Agency and the Justice Department.
This action will settle a bankruptcy claim filed by the federal government to recoup costs associated with cleaning up businesses, homes and schools in Libby, Mont.
Since May 2000, the EPA has been removing asbestos-contaminated soils and other materials in and around Libby. In March 2001 the federal government filed suit against W.R. Grace to recover investigation and cleanup costs under the Comprehensive Environmental Response, Compensation, and Liability Act, also known as the "Superfund" law. The lawsuit also named a W.R. Grace subsidiary, Kootenai Development Corporation, as a defendant because it owned three contaminated properties in Libby.
The federal district court in Montana awarded EPA incurred by EPA through December 31, 2001 in 2003. Due to W.R. Grace's bankruptcy that award has not been paid. The March 11 agreement settles the 2003 judgment in addition to continuing cleanup costs EPA has incurred since Dec. 31, 2001 and will incur in the future. To finance future site cleanup EPA will place the settlement proceeds into a special account within the Superfund.
From 1963 - 1990 W.R. Grace owned and operated a vermiculite mine and vermiculite processing facilities in and near Libby, Montana. The vermiculite ore was contaminated with asbestos. Vermiculite and asbestos have been found in various locations in Libby and in surrounding areas.
Asbestos is a known human carcinogen and causes lung cancer and mesothelioma, an often fatal tumor of the lining within the chest and/or abdominal cavities. Asbestosis, a disease characterized by lung scarring is also caused by exposure to asbestos.
In April 2001, W.R. Grace along with 61 affiliated companies filed for bankruptcy. In March 2003, EPA filed a bankruptcy claim against W.R. Grace to recover expenses for past and future cleanups. The company is headquartered in Columbia, Md., and has employees in nearly 40 countries. The company manufactures a variety of products including building materials, construction chemicals and chemical additives.
The terms of the settlement require W.R. Grace to pay the $250 million within 30 days of approval by the bankruptcy court. The settlement agreement is subject to court approval after a 30-day public comment period and will be lodged in the U.S. Bankruptcy Court for the District of Delaware.
