EPA v. CHEMTURA BANKRUPTCY (NATIONAL CASE)

Case summary

8/26/09 - THIS IS A BANKRUPTCY REFERRAL THAT INCLUDES CLAIMS UNDER CERCLA AND THE CAA. THE CAA CASE HAS ALREADY BEEN REFERRED AND THIS REFERRAL ONLY REQUESTS THAT A PROOF OF CLAIM BE FILED. U.S. Announces $26 Million Bankruptcy Settlement with Chemical Manufacturer WASHINGTON — The U.S. Environmental Protection Agency (EPA), the U.S. Justice Department, and the United States Attorney for the Southern District of New York today announced that Chemtura Corporation has agreed to resolve its liabilities at contaminated sites across the U.S. for approximately $26 million. The agreement settles Chemtura’s environmental liabilities under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, commonly known as Superfund), and for violations of the Clean Air Act (CAA), the Clean Water Act (CWA), and the Emergency Planning and Community Right-to-Know Act (EPCRA). Chemtura, based in Middlebury, Conn., is a global producer of specialty chemicals, polymer products, and crop protection chemicals, and a leading U.S. supplier of pool and spa chemicals. The company operates in more than 40 countries and its predecessors include Crompton & Knowles Corporation, Uniroyal Chemical Corporation, Witco Corporation, and Great Lakes Chemical Corporation. Chemtura and 26 of its affiliates filed for protection under Chapter 11 of the U.S. Bankruptcy Code on March 18, 2009 in the U.S. Bankruptcy Court for the Southern District of New York. At the time of bankruptcy filing, the company was potentially responsible for cleanups at numerous Superfund sites, including remediation activities in the states of Alabama, California, Connecticut, Delaware, Florida, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, North Carolina, Pennsylvania, South Carolina and Texas. Chemtura will pay approximately $26 million in cash and allowed claims for 17 properties, 12 of which are on EPA’s list of the most serious hazardous waste sites requiring cleanup. Much of the money paid to the United States will be used by EPA to pay for future cleanup work; more than $8 million will be used to address environmental cleanup and restoration work at the Diamond Alkali Superfund Site in New Jersey. Chemtura will continue to honor its cleanup work obligations at the Laurel Park, Inc. Superfund Site in Naugatuck, Conn. The settlement agreement does not resolve Chemtura’s environmental liabilities arising out of the Gowanus Canal Superfund Site. Those liabilities, which are expressly excluded from the scope of today’s settlement, remain the subject of ongoing negotiation. The settlement also resolves a claim for penalties under CERCLA, CAA, CWA and EPCRA due to violations stemming from a May 2004 fire at Chemtura’s Bio-Lab, Inc. facility in Conyers, Ga. The U.S. Treasury will receive approximately $785,000 for these penalties. The settlement agreement will be lodged with the bankruptcy court for a period of fifteen days before its entry to provide public notice and to afford members of the public the opportunity to comment on the settlement. More information on the settlement: http://www.epa.gov/compliance/resources/cases/cleanup/cercla/chemtura/index.html More information on EPA cleanup enforcement: http://www.epa.gov/compliance/cleanup

Defendants (1)

• CHEMTURANamed in complaintNamed in settlement

Facilities (16)

• RED PANTHER CHEMICAL COMPANY

  1201 NORMANDY STREET, CLARKSDALE, MS, 38614-6918

  Registry ID: 110071099878

• LANDIA CHEMICAL COMPANY

  1405 W OLIVE ST, LAKELAND, FL, 33815-4386

  Registry ID: 110002530529

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• CAROLAWN, INC.

  S. OF SC HWY 9 ON CO. RD 841, FORT LAWN, SC, 29714

  Registry ID: 110009310897

• LEMOYNE SITE

  13440 HIGHWAY 43 NORTH, AXIS, AL, 365054315

  Registry ID: 110000741243

• JADCO-HUGHES FACILITY

  NC HWY 2035, BELMONT, NC, 28012

  Registry ID: 110009296742

• LWD INC

  2475 INDUSTRIAL PKWY, CALVERT CITY, KY, 42029

  Registry ID: 110072196276

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• LEMOYNE SITE

  13440 HIGHWAY 43 NORTH, AXIS, AL, 365054315

  Registry ID: 110000741243

• INTERSTATE LEAD COMPANY INCORPORATED

  1247 BORDEN AVENUE, LEEDS, AL, 35094

  Registry ID: 110017418007

• LEMOYNE SITE

  13440 HIGHWAY 43 NORTH, AXIS, AL, 365054315

  Registry ID: 110000741243

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• BIO LAB INCORPORATED

  1700 OLD COVINGTON HIGHWAY SOUTHWEST, CONYERS, GA, 30012

  Registry ID: 110007087213

• …and 1 more

Statutes cited

• CAA 112[R][1] — Prevention of Accidental Release/General Duty Clause
• CERCLA 107A — Cost Recovery

Enforcement conclusions (1)

• CHEMTURA BANKRUPTCY (NATIONAL CASE) (04-2010-C021)entered 2010-09-17

  Primary law: CERCLA

  Federal penalty: $785,714

Timeline (6 milestones)

• 2009-08-26Referred To Dept Of Justice
• 2009-09-18Enforcement Action Data Entered
• 2009-10-29Complaint Filed With Court
• 2010-09-17Final Order Entered
• 2010-09-17Final Order Lodged
• 2010-09-17Concluded