Source: http://www.nj.com, September 15, 2014
By: S.P. Sullivan
The state moved closer to ending more than eight years of litigation over toxic pollution in the Passaic River with the announcement of a $190 million settlement agreement with the Occidental Chemical Co. on Monday.
The agreement amounts to the largest single settlement reached between the state and the companies held responsible for the clean up of the Passaic, considered one of the most polluted waterways in the nation.
Environmental groups welcomed the news, but noted that the cost of the cleanup for the contamination far exceeds the total recovered by the state from polluters, and cautioned that money from the settlement could be diverted to balance the state’s budget.

TOXIC CHEMICALS IN THE RIVER

Monday’s settlement has to do with Occidental’s liability for contamination caused by the former Diamond Shamrock Chemicals Company, which operated a pesticides plant on Lister Avenue in Newark the 1960s. That plant produced the notorious Vietnam War-era defoliant Agent Orange, and previous court rulings found the company intentionally dumped harmful chemical byproducts into the river.
Hundreds of companies have since been found responsible for polluting the Passaic over the years, and the riverbed is laden with a toxic cocktail of pollutants including cancer-causing dioxin, PCBs and mercury. A 17-mile stretch makes up one of the largest Superfund sites in the nation, and the federal Environmental Protection Agency is finishing up plans for a clean up of the lower eight miles of the river, which is expected to cost more than $1.7 billion.
The agreement is only a proposed settlement, and is subject to review by a Superior Court judge following a public comment period. A final settlement could be reached in December, officials said.
“If approved, this is an important legal outcome for the residents of New Jersey, and for our environment,” acting Attorney General John Hoffman said in a statement. “The citizens of our state should not be forced to shoulder the cost of repairing damage to one of our most precious natural resources – the Passaic River — by industrial polluters.”
Eric Moses, a spokesman for the company, said Monday that Occidental, which purchased Diamond stock in the 1980s, will seek reimbursement from the companies that managed the site when the pollution occurred, including the Maxus Energy Corporation.
“We are pleased to have reached an agreement with the State of New Jersey and look forward to its approval so the focus can shift to the cleanup of the Passaic River,” he said.
A spokesman for Maxus declined comment Monday.

ENVIRONMENTAL GROUPS WANT FULL CLEAN UP

Hoffman and state Department of Environmental Protection Commissioner Bob Martin said Monday that two prior settlements with several other companies amounted to $165.4 million, bringing the total recouped by the state to $355.4 million.
“The parties responsible for the pollution should be accountable for the expense of the remediation, and not the taxpayers of our state,” Martin said. “We have stood firm in that commitment and strongly support the settlement being announced today.”

But Debbie Mans, head of NY/NJ Baykeeper, an environmental group, said it’s unclear how much of the settlement will be spent specifically on the clean up following changes to the state budget last year that allow environmental settlement money to be diverted to the state’s general fund.

“Settlements to compensate the public for years of damage to the environment should not be used to plug gaps in the general fund,” she said. “All the money recovered under this Passaic River litigation should be going back into cleaning up and restoring the environment for those communities.”
U.S. Rep. Bill Pascrell, who represents many towns along the Passaic’s most polluted waters, agreed.
“Instead of balancing the budget at the expense of environmental restoration, Governor Christie must utilize these funds to restore this vital natural resource that has suffered decades of neglect,” the Congressman said in a statement.
Under the settlement, $50 million would go toward restoration projects in and around the Newark Bay, adding to the $17 million collected from previous settlements. The company also agreed to pay for some of the state’s costs associated with the ongoing Superfund clean up.
“The remainder of the money is to be used as the Governor and Legislature deem appropriate,” said Leland Moore, a spokesman for the AG’s office.
Monday’s settlement announcement came as the EPA was finalizing plans to remediate the lower eight miles of the river. Jeff Tittel, director of the New Jersey Sierra Club, said his group is concerned that the EPA, which is weighing several potential clean up options, will choose a less extensive remedy than a bank-to-bank dredge of the river.
“This contamination has been posing risks to both human health, marine ecosystem, and the community for far too long,” Tittel said, calling for a “full removal of the contamination.”