From: Nigel.Allen@bbs.oit.unc.edu (Nigel Allen)
Subject: New Bedford Harbour PCB Superfund Case: $109 Million Settlement
Organization: NDA
Date: Tue, 8 Sep 1992 08:37:30 GMT

Here is a press release from the U.S. Department of Justice.

 U.S., Massachusetts Complete $109 Million Settlement in New Bedford
Harbor PCB Superfund Case
 To: National Desk, Environment and Legal writers
 Contact: U.S. Department of Justice, Public Affairs, 202-514-2007

   WASHINGTON, Sept. 4 /U.S. Newswire/ -- The Department of Justice
said today that the United States and the commonwealth of
Massachusetts have reached a $21 million settlement with Federal
Pacific Electric Co. (FPE) of Cleveland and Cornell-Dubilier
Electronics Inc. (CDE) of Wayne, N.J., the remaining two defendants
in the New Bedford Harbor Superfund litigation.
   Under a proposed consent decree filed in U.S. District Court in
Boston, FPE and CDE will pay $21 million to the United States, on
behalf of the Environmental Protection Agency (EPA) and the National
Oceanic and Atmospheric Administration (NOAA), and to the
Commonwealth of Massachusetts.  The money completes a larger
$109 million package and will go toward funding the cleanup
of the widespread polychlorinated biphenyl (PCB) contamination
of New Bedford Harbor; restoring injured natural resources of
the harbor area; and reimbursing the respective government
agencies for funds already spent in enforcement, remedial
investigation, feasibility studies and natural resource damage
assessment costs.
   The amount to be paid by FPE and CDE represents the last in a
series of settlements negotiated by the department and the
commonwealth of Massachusetts.  Under the first settlement finalized
in July 1991, AeroVox Inc. and Belleville Industries Inc. agreed to
pay $13 million.  The second settlement for approximately
$75 million was finalized in February 1992 with the AVX Corp.
   This is one of the first natural resource damages cases filed
under the Superfund statute, and one of the largest natural resource
damages recoveries under the Superfund statute to date.  Of the
$109 million recovered, between $66 million and $76 million will
go to fund the cleanup of the Harbor by EPA, and $21 million
to $31 million will be used by the natural resource trustees
to restore or acquire substitutes for the injured natural resources
of the harbor.  The remaining $12 million will reimburse the
government's study and investigation costs.
   U.S. Associate Attorney General Wayne Budd, formerly the U.S.
Attorney for the District of Massachusetts, noted the importance of
today's actions: "Today's results cap a long effort to ensure that
the corporations which polluted New Bedford Harbor pay to clean up
New Bedford Harbor.  Polluters in other parts of the U.S. should know
that they will be held responsible for the damage they do to the
natural resources of this country.  Removing PCBs from New Bedford
Harbor is a significant step toward the larger goal of cleaning up
the damage caused by those who would despoil natural resources
throughout the nation." In announcing the settlement, Acting
Assistant Attorney General for the Environment and Natural Resources
Division, Vicki O'Meara, said, "These agreements represent a
significant step toward cleanup of the contamination of New Bedford
Harbor, and restoration of the damaged natural resources of the
harbor, both of which have long been priorities for the federal
government."
   "This recovery breaks bold new legal ground because it is the
first Superfund Natural Resources Damages case in the history of the
commonwealth," said Massachusetts Attorney General Scott
Harshbarger.  "The settlement is the result of outstanding state and
federal cooperation which should serve as a model for future efforts
to restore environmental areas that have suffered harmful
contamination."
   U.S. Attorney A. John Pappalardo praised the settlement and the
efforts of all the parties involved, and emphasized his office's
commitment to enforcing the federal environmental laws.  "From Boston
Harbor to New Bedford Harbor, this office has stood committed to
aggressively enforcing environmental laws and aiding in the cleanup
of our natural resources.  We will continue to do so throughout the
commonwealth."
   "Our pursuit of the responsible companies concludes today with the
third and final settlement for the New Bedford site," said Julie
Belaga, EPA regional administrator.  "In addition to the funds
for natural resource restoration, this settlement will help
support our ongoing cleanup efforts and reimburse EPA for money
spent on site studies and enforcement efforts.  Making the polluter
pay for cleanup is a cornerstone of the Superfund program."
   Addressing the recovery from injury of natural resources
in New Bedford Harbor, NOAA Counselor to the Undersecretary
Gray Castle said, "We are gratified that this settlement will
provide substantial funds for EPA to cleanup PCB contamination
in the harbor and for the trustees to restore the natural resources
of the New Beford Harbor environment and the adjacent waters
of Buzzards Bay.  The message is clear that the natural resource
trustees will seek substantial monies from responsible parties
for injury to natural resources."
   The department and the Massachusetts Attorney General's
ofice originally filed their civil complaints in 1983, charging
that five companies were responsible for the release of PCBs
from manufacturing plants adjacent to the harbor.  The complaints
alleged that the PCBs injured the harbor area's natural resources,
including fishing, lobstering and recreational activities that
have been shut down or compromised due to PCB contamination.
   In addition to seeking damages for the injured natural resources,
the department and the commonwealth amended their complaints in
1984 to include claims for the cleanup costs as well as the related
costs for studies and investigations.
   Specifically, the complaints alleged that FPE and CDE, as well as
the other defendants, owned and operated plants located adjacent to
the New Bedford Harbor that manufactured electrical capacitors.  From
1947 to 1977, the companies used PCBs in the manufacturing process.
   The case against FPE and CDE charged that the plant became
contaminated with PCBs during the years of operation.  The PCBs were
released into the harbor from the plant through drains, troughs and
sewer outfalls.
   PCBs, a suspected carcinogen, accumulate in fish and shellfish and
can be toxic to humans at certain levels.  After EPA studies in the
1970s revealed high levels of PCBs in fish and shellfish in the
harbor, Massachusetts authorities closed an 18 square-mile area of
the harbor to lobstering.  They also closed a smaller area to
fishing for bottom feeding species such as flounder, tautog, scup and
eels, and banned fishing entirely in a northern section of the
Acushnet River estuary.
   Belaga said EPA's cleanup plans for the areas of the harbor with
the highest levels of PCB contamination were finalized in an April
1990 Record of Decision (ROD).  To cleanup these "hot spots," the
ROD calls for dredging contaminated sediment and incinerating it in
a temporary treatment facility in New Bedford.
   Belaga added that EPA is now developing, in conjunction with
natural resource trustees, a proposed cleanup plan for the remaining
portions of the New Bedford Harbor cleanup.
   Today's consent decree with FPE and CDE is open for public comment
and subject to approval by the federal district court.
    ------
   For further comment, contact Suzanne Durrell at the Boston U.S.
Attorney's office, 617-223-9407; Elizabeth Hyman at the Massachusetts
Attorney General's office, 617-727-2543; Jim Sebastian at the EPA
Region 1 office, 617-565-3423; or Reid Boatwright at the NOAA
headquarters.
 -30-

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