Enforcement

Case Summary: EPA Receives over $54 Million from W.R. Grace Bankruptcy

On February 5, 2014, The United States Department of Justice (DOJ) received on behalf of the EPA approximately $54 million from W.R. Grace to resolve environmental liability claims associated with thirty-nine Superfund sites under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, commonly referred to as "Superfund").  The payment was made pursuant to the company’s bankruptcy plan of reorganization. DOJ will transfer the money to the Superfund Trust Fund and Superfund special accounts. 

“Cleaning up toxic pollution in communities is the responsibility of the company that created it, not the American taxpayer. This money will be used to clean up contaminated sites and to make a tangible difference for local communities across the country." Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance.

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Information about the Company

W. R. Grace, with their world headquarters in Columbia, Md., is a leading global supplier of catalysts, engineered and packaging materials, specialty construction chemicals and building materials. Grace has operations in more than 40 countries.

  • The debtors consist of the following 62 entities:
    • W. R. Grace & Co. (f/k/a Grace Specialty Chemicals, Inc.
    • W. R. Grace & Co.-Conn.
    • A-1 Bit & Tool Co., Inc.
    • Alewife Boston Ltd.,
    • Alewife Land Corporation
    • Amicon, Inc.
    • CB Biomedical, Inc. (f/k/a Circe Biomedical, Inc.)
    • CCHP, Inc.
    • Coalgrace, Inc.
    • Coalgrace II, Inc.
    • Creative Food 'N Fun Company
    • Darex Puerto Rico, Inc.
    • Del Taco Restaurants, Inc.
    • Dewey and Almy, LLC (f/k/a Dewey and Almy Company
    • Ecarg, Inc.
    • Five Alewife Boston Ltd.
    • G C Limited Partners I, Inc. (f/k/a Grace Cocoa Limited Partners I, Inc.
    • G C Management, Inc. (f/k/a Grace Cocoa Management, Inc.
    • GEC Management Corporation
    • GN Holdings, Inc.
    • GPC Thomasville Corp.
    • Gloucester New Communities Company, Inc.
    • Grace A-B Inc.
    • Grace A-B II Inc.
    • Grace Chemical Company of Cuba, Grace Culinary Systems, Inc.
    • Grace Drilling Company
    • Grace Energy Corporation
    • Grace Environmental, Inc.
    • Grace Europe, Inc.
    • Grace H-G Inc.
    • Grace H-G II Inc.
    • Grace Hotel Services Corporation
    • Grace International Holdings, Inc. (f/k/a Dearborn International Holdings, Inc.
    • Grace Offshore Company
    • Grace PAR Corporation
    • Grace Petroleum Libya Incorporated
    • Grace Tarpon Investors, Inc.
    • Grace Ventures Corp.
    • Grace Washington, Inc.
    • W. R. Grace Capital Corporation
    • W. R. Grace Land Corporation
    • Gracoal, Inc.
    • Gracoal II, Inc.
    • Guanica-Caribe Land Development Corporation
    • Hanover Square Corporation
    • Homco International, Inc.
    • Kootenai Development Company, L B Realty, Inc.
    • Litigation Management, Inc. (f/k/a GHSC Holding, Inc. Grace JVH, Inc. Asbestos Management, Inc.
    • Monolith Enterprises, Incorporated
    • Monroe Street, Inc.
    • MRA Holdings Corp. (f/k/a Nestor-BNA Holdings Corporation
    • MRA Intermedco, Inc. (f/k/a Nestor-BNA, Inc.
    • MRA Staffing Systems, Inc. (f/k/a British Nursing Association, Inc.
    • Remedium Group, Inc. (f/k/a Environmental Liability Management, Inc. E&C Liquidating Corp., Emerson & Cuming, Inc.
    • Southern Oil, Resin & Fiberglass, Inc.
    • Water Street Corporation
    • Axial Basin Ranch Company, CC Partners (f/k/a Cross Country Staffing
    • Hayden-Gulch West Coal Company
    • H-G Coal Company.

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    Background Information about the W.R. Grace Bankruptcy

    W.R. Grace and sixty-one affiliated companies (listed above) filed for reorganization under Chapter 11 of the Bankruptcy Code on April 2, 2001. The cases were consolidated for administrative purposes and W.R. Grace continued to operate its businesses and manage its properties as a debtor in possession. In March 2003, EPA filed claims against the company to recover past and future cleanup costs at sites contaminated by vermiculate, asbestos and a variety of hazardous substances. W.R. Grace emerged from bankrupcy February 4, 2014.

    Numerous agreements to resolve the Agency’s environmental liability claims against the company and its affiliates were negotiated as part of the company’s bankruptcy proceedings between April 2008 and February 2013. The company continues to be responsible for all of the sites it owns or operates and for any additional sites that were not known or resolved under the earlier settlements.

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    Overview of Settlements with W.R. Grace during the course of the Bankruptcy Proceedings

    The following is an overview of the major settlement agreement with W.R. Grace during its bankruptcy proceedings.

    May 2008 Multi-site Settlement

    Approved in May 2008 by the bankruptcy court, a multi-site settlement has resulted in a payment totaling over $52 million for administrative costs and claims, plus interest, to address the company’s liability at approximately 30 sites, in 21 states. This settlement also provides that WR Grace will continue to be liable for all of the sites it owns or operates and for “additional sites” which includes sites that were not known at the time of the settlement. More information is available from the 2008 Multi-site Settlement case summary.

    Additional Site Settlements

    Because of the additional sites provision in the multi-site settlement, WR Grace entered into numerous cleanup orders whereby the company agreed to a pay for or perform cleanup work at sites in New York, Massachusetts, Georgia, Texas, and Tennessee.  WR Grace will continue to be responsible for additional sites after its emergence from bankruptcy.

    Settlements associated with Libby, Mont. Superfund Site

    EPA entered into a separate settlement agreement with WR Grace in June 2008 for the Libby Asbestos Site.  WR Grace paid EPA $250 million to cash out its liability for the Libby site with the exception of the Libby Mine and contamination migrating from the mine. EPA deposited the $250 million into to a special account and has used these funds to pay for response actions at Libby. More information on the 2008 Libby Mine settlementEPA entered into administrative orders with WR Grace whereby the company is currently performing work at the Libby Mine. More information about the Libby Superfund Site.

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    List of Sites

    The approximately $54 million payment to EPA will reimburse the Agency for cleanup costs or provide funds for future cleanup at 39 Superfund sites in 21 states as follows:

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    Contact Information

    For more information contact:

    Andrea Madigan
    CERCLA Supervisory Attorney
    CERCLA Response and Cost Recovery Unit
    U.S. EPA Region 8
    1595 Wynkoop Street
    Denver, Colorado  80202
    (303) 312-6904
    Madigan.andrea@epa.gov

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