State settlement proposed for libby asbestos case

Libby, Montana - Only a few weeks after the federal government announced it may finally reach a settlement with W.R. Grace & Company, Montana state officials say they are also ready to sign an agreement with the company which may see more Libby asbestos claims settled. The Environmental Protection Agency announced in April that it had negotiated a $250 million settlement with W.R. Grace & Company. The money would be used to reimburse the agency’s Superfund and pay for the costs of cleaning up the contamination in Libby which was caused by the company’s mining operation in the town. The Montana Department of Environmental Quality today announced a proposed $5.1 million settlement, which will provide additional money to help fund future clean-up costs in Libby. The proposal will soon be open for public comment, and it must be approved by W.R. Grace’s bankruptcy judge. The funds allotted to the Montana Department of Environmental Quality will be separate from the $250 million settlement, and will not come from that money. The DEQ says the $5.1 million will be used only after the EPA’s main clean up project has been finished, and that the money will be used for maintenance and other operations. DEQ Director Richard Opper said, “Since Grace is already paying $250 million for cleanup costs here, we were not going to get a lot of additional funding through the bankruptcy. We are pleased that we were able to get at least a significant sum to help ensure that there is adequate funding to do this cleanup right.” DEQ Remediation Division Administrator Sandi Olsen said, “The EPA settlement currently earmarks $11 million for operation and maintenance. This settlement increases that funding by over $5 million. Of course, operation and maintenance comes at that end of the process, so there should be a substantial amount of interest earnings to cover these costs as well.” The proposed DEQ settlement covers commercial and residential property in Libby and Troy, both of which are affected by the asbestos-contaminated vermiculite mine once operated by W.R. Grace & Company. The mine itself and the land around it will be addressed separately. The proposed agreement, including information about commenting on it, can be found on the Montana DEQ web site at www.deq.mt.gov. Comments must be received by July 7, 2008. (Source: Asbestos and Mesothelioma News)