United States Announces $26 Million Bankruptcy Settlement with Chemical Manufacturer

PREET BHARARA, the United States Attorney for the
Southern District of New York, ROBERT DREHER, the Principal
Deputy Assistant Attorney General for the Justice Department’s
Environment and Natural Resources Division (“ENRD”), and CYNTHIA
GILES, the Assistant Administrator for the Office of Enforcement
and Compliance with the United States Environmental Protection
Agency (“EPA”), announced today that the United States has
entered into a settlement agreement with Connecticut chemical
manufacturer CHEMTURA CORPORATION requiring CHEMTURA to pay
approximately $26 million for the cleanup of contaminated sites
located in 14 different states. The settlement agreement
resolves claims asserted against CHEMTURA by the EPA and the
National Oceanic and Atmospheric Administration (“NOAA”) under
the Comprehensive Environmental Response, Compensation and
Liability Act (“CERCLA”) in CHEMTURA’s bankruptcy proceedings.
The settlement is subject to the approval of U.S. Bankruptcy

Based in Middlebury, Connecticut, CHEMTURA 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. On March 18, 2009, CHEMTURA and 26 of its
affiliates filed Chapter 11 petitions in the U.S. Bankruptcy
Court for the Southern District of New York.
In October 2009, the United States filed proofs of
claim against CHEMTURA in the bankruptcy seeking to recover past
and future environmental cleanup costs and natural resource
damages. The United States also sought civil monetary penalties
for violations of the Clean Air Act, the Clean Water Act, and the
Emergency Planning and Community Right to Know Act.

Under the Settlement Agreement filed today in Manhattan
bankruptcy court:
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. Of
the total amount to be paid under the settlement, the United
States will receive approximately $17 million in allowed general
unsecured claims, which are expected to be fully paid in cash.
The United States will receive an additional approximately $9
million in cash to resolve CHEMTURA’s outstanding obligations at
eight of the 17 sites.
The sites and facilities covered by today’s settlement
include the following:
• the Beacon Heights Landfill Superfund Site in
• the BioLab Facility in Georgia;
• the Central Chemical Superfund Site in Maryland;
• the Cleve Reber Superfund Site in Louisiana;
• the Cooper Drum Company Superfund Site in California;
• the Delaware Sand and Gravel Superfund Site in
• the Diamond Alkali Superfund Site in New Jersey;
• the El Dorado Site in Arkansas;
• the Halby Chemical Superfund Site in Delaware;
• the Interstate Lead Company Superfund Site in Alabama;
• the Jadco Hughes Superfund Site in North Carolina;
• the Landia Chemical Company Superfund Site in Florida;
• the LWD Site in Kentucky;
• the Malone Service Company Superfund Site in Texas;
• the Red Panther Chemical Company Site in Mississippi;
• the Stauffer-LeMoyne Superfund Site in Alabama; and
• the Stoney Creek Technologies Site in Pennsylvania.
The Settlement Agreement further requires CHEMTURA to
continue performing cleanup work and other obligations at the
Laurel Park, Inc. Superfund Site in Connecticut pursuant to an
existing consent decree.
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 Agreement will be lodged with the
Bankruptcy Court for a period of 15 days before its entry to
provide public notice and to afford members of the public the
opportunity to comment on the settlement.
Manhattan U.S. Attorney PREET BHARARA praised the
efforts of the Environment and Natural Resources Division
(“ENRD”) of the Department of Justice, EPA, and NOAA.
The case is being handled by the Environmental
Protection Unit of the Office’s Civil Division, working with the
Department of Justice’s ENRD. Assistant U.S. Attorneys LAWRENCE
ENRD Attorney KEVIN LYSKOWSKI are in charge of the case.
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