EPA v. VELSICOL CHEMICAL CORP (VELSICOL HARDEMAN COUNTY/HOLLYWOOD DUMP/RESIDUE HILL)

Case summary

4/25/05 - CONSENT AGREEMENT ISSUED. ON AUGUST 9, 2002, THE U.S. BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE APPROVED A SETTLEMENT AGMT IN IN RE FRUIT OF THE LOOM, INC. NO. 99-4497, BETWEEN THE U.S. ON BEHALF OF THE EPA, THE DEPARTMENT OF INTERIOR, THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, AND THE NUCLEAR REGULATORY COMMISSION, AND THE STATES OF MICHIGAN, NEW JERSEY, TENNESSEE, AND ILLINOIS, DEBTORS FRUIT OF THE LOOM, INC., AND NWI LAND MANAGEMENT INC., AND RESPONDENTS VELSICOL CHEMICAL CORP AND TRUE SPECIALTY CORP. ( VELSICOL ). PARAGRAPH 15 OF THE BANKRUPTCY SETTLEMENT AGREEMENT PROVIDED THAT VELSICOL COULD REQUEST THAT THE GOVERNMENTAL PARTIES ENTER INTO AN ABILITY TO PAY SETTLEMENT WITH RESPECT TO THE REQUIREMENT ADDITIONAL PAYMENT UNDER PARAGRAPH 15 (ADDITIONAL PAYMENT BY VELSICOL IN THE EVENT THAT THE TRUST HAD NOT RECEIVED FUNDING BY DECEMBER 31, 2004). ON AUGUST 28, 2002, EPA REGION 4 AND VELSICOL ENTERED INTO AN AGMT AND SETTLEMENT FOR RECOVERY OF RESPONSE COSTS, EPA DOCKET NO. 00-51-C, WHICH PROVIDED FOR THE PAYMENT OF $650,000 FROM THE VELSICOL ENVIRONMENTAL TRUST FUND TO EPA REGION 4, WHICH PAYMENT WAS RECEIVED ON OR ABOUT AUGUST 4, 2004. PARAGRAPH 15 OF THE EPA REGION 4 AGMT ALSO REQUIRED VELSICOL TO MAKE ADDITIONAL PAYMENTS TOTALING $1,377,935.27 ON JANUARY 2, 2005, PLUS ACCRUED INTEREST. VELSICOL HAS REQUESTED THAT THE GOVERNMENTAL PARTIES ENTER INTO THIS AGMT IN ORDER TO RESOLVE, BASED ON ABILITY TO PAY, ANY FURTHER LIABILITY THAT VELSICOL MIGHT HAVE UNDER PARAGRAPH 15 OF THE BANKRUPTCY SETTLEMENT AGMT AND PARAGRAPH 15 OF THE EPA REGION 4 AGMT. THE TRUST SHALL DISTRIBUTE THE $1,454,000 TO ITS TRUST ACCOUNTS AS FOLLOWS: $421,660 TO THE VENTRON/VELSICOL/BERRY'S CREEK FACILITY ACCOUNT; $421,660 TO TEH HARDEMAN FACILITY ACCOUNT; $305,340 TO THE ST. LOUIS FACILITY ACCOUNT; $101,780 TO THE BRECKINRIDGE FACILITY ACCOUNT; $72,700 TO THE HOLLYWOOD DUMP FACILITY ACCOUNT; $43,620 TO THE RESIDUE HILL FACILITY ACCOUNT; $14,540 TO THE MARSHALL FACILITY ACCOUNT; AND $72,700 TO THE ADMINISTRATIVE ACCOUNT. THE TRUST SHALL THEN USE THE FUNDING IN EACH TRUST ACCOUNT AS PROVIDED IN THE BANKRUPTCY SETTLEMENT AGMT FOR SUCH RESPECTIVE TRUST ACCOUNT.

Defendants (1)

• VELSICOL CHEMICAL CORP.Named in settlement

Facilities (2)

• TENNESSEE PRODUCTS

  4800 CENTRAL AVE, CHATTANOOGA, TN, 37409

  Registry ID: 110001856108

• TENNESSEE PRODUCTS

  4800 CENTRAL AVE, CHATTANOOGA, TN, 37409

  Registry ID: 110001856108

Statutes cited

• CERCLA 122H — Administrative Cost Recovery Settlement

Enforcement conclusions (1)

• VELSICOL CHEMICAL CORP (VELSICOL HARDEMAN COUNTY/HOLLYWOOD DUMP/RESIDUE HILL)entered 2005-04-25

  Primary law: CERCLA

Timeline (3 milestones)

• 2005-04-25Final Order Issued
• 2005-07-05Enforcement Action Data Entered
• 2007-05-08Enforcement Action Closed