"Global" settlement announced for Fike/Artel Superfund cleanup

May 1997

U.S. Water News Online

PHILADELPHIA -- A complex and innovative settlement worth more than $130 million was reached for the Fike/Artel Chemical Superfund site in Nitro, West Virginia. This so-called "global" settlement with 54 parties, including other federal agencies, reconciles all Superfund costs at the site, and guarantees future cleanup efforts, according to federal officials.

The consent decree for the settlement was entered recently by Judge John Copenhaver of the U.S. District Court for the Southern District of West Virginia.

"This settlement is an exceptional success on many levels for the Environmental Protection Agency," said EPA Regional Administrator Michael McCabe. "It has replenished the Superfund, reduced costs associated with future enforcement activities, and expedited the ultimate cleanup of the site for beneficial use of the community."

Highlights of the settlement include:

• Reimbursement by 54 defendants to the United States of $19.6 million in costs spent by the government for Superfund response actions, representing half of the government's past costs. In addition, EPA has written off $14 million as an "orphan share" by the former owners and operators of the site. An "orphan share" is the money that would have been owed by additional responsible companies that are now defunct;
  
• Reimbursement to the state of West Virginia of $1.15 million for its efforts in the Superfund response actions. Also, the settling parties have committed to provide annual funding of $30,000 to pay state oversight expenses;
  
• A commitment by settling parties to clean up soil and groundwater, provided the estimates do not exceed $59 million, and the future land use of the site is industrial;
  
• A commitment by EPA and the state to support the City of Nitro in its effort to redevelop the site.

The Fike/Artel Chemical Company is located on the site of a World War I munitions plant. It later operated as a specialty chemical manufacturing facility, and was abandoned in 1988. In 1983, the EPA designated the 12-acre site as a priority for cleanup.

At the time of initial cleanup actions, the EPA considered conditions at the site to be extremely threatening. The potential risk to human health and the environment due to fire, catastrophic explosion, and the continual release of hazardous substances caused EPA to take emergency action to remove the threat. Due to the complexity of the project, the EPA has conducted remedial activities in phases.

EPA estimates remaining cleanup work can be completed within five years.

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