Seven Superfund Sites Receive Funds from Nation's Largest Environmental Bankruptcy Settlement

At least seven Superfund sites in EPA Region 7, including five in Missouri and one each in Kansas and Nebraska, will receive a total of $282 million, plus interest, to fund environmental cleanup and restoration work as a result of a legal settlement in the largest environmental bankruptcy case in U.S. history.

The seven sites in Region 7 are among more than 80 Superfund sites in 19 states receiving portions of a $1.79 billion settlement from the reorganization of ASARCO. The funds will be used to pay for past and future costs incurred by federal and state agencies to address environmental contamination caused by ASARCO's operations around the country.

ASARCO, based in Arizona, is a producer of copper, and is one of the largest nonferrous metals producers in the U.S. The company filed for protection filed for Chapter 11 Bankruptcy protection Aug. 9, 2005.

Nationwide, the settlement will encompass the cleanup of 10.5 million cubic yards of soil, or enough to cover nearly 2,000 football fields three feet deep. The funding will also address the cleanup of 5 million cubic yards of contaminated water at the various sites.

 “Today’s landmark enforcement settlement will provide almost one billion dollars to clean up polluted Superfund sites,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “This will mean cleaner land, water and air for communities across the country.”

In August 2009, following lengthy litigation, the U.S. Bankruptcy Court for the Southern District of Texas held a two-week hearing on competing plans of reorganization for ASARCO that would allow the company to be purchased out of bankruptcy.  During this hearing, two competing plans emerged that proposed to pay creditors in full with interest.   

On Aug. 31, 2009, Judge Richard Schmidt of the U.S. Bankruptcy Court in Corpus Christi issued a recommendation to the U.S. District Court for the Southern District of Texas to confirm the plan proposed by ASARCO’s parent company—a subsidiary of Grupo Mexico.  U.S. District Judge Andrew Hanen in Brownsville accepted Judge Schmidt’s recommendation and confirmed Grupo Mexico’s plan on Nov. 13, 2009.

On Dec. 9, Grupo Mexico met its funding obligations and the plan was consummated.  Additionally, the environmental payment and property transfer obligations outlined in the numerous settlement agreements, which had been approved by the bankruptcy court over the course of the litigation, were complied with.