Re: [CPEO-BIF] Asarco Everett, Washington smelter site

["Schnapf, Lawrence" <Lawrence.Schnapf@srz.com>]

I believe that Asarco is a full-fledged chapter 11 reorganization where
it receives a discharge for pre-petition claims. The non-owned sites are
considered unsecured claims so the government does not have as much
leverage as it does when the debtor has owned property.

The auto companies "reorganized" through a sale under section 363 of the
bankruptcy code where the buyer can acquire the assets "free and clear"
of liens and interests. The order approving the Chrysler sale
specifically provided that the purchaser would not be liable as a
successor corporation. Many of the nasty sites were left behind in "Old
Carco LLC".
I think reorganized GM was forced to take on some of the product
liability liability but once again the old company was saddled with
environmental liability associated with non-sold plants and dealerships.


I suppose Treasury thought it was more important to reorganize the auto
companies than to make sure what are basically orphaned sites are
properly cleaned up. So EPA is left with this mess and a Superfund with
limited financial resources. Since Treasury acts as though it has
unlimited resources, perhaps it will contribute some funds for these
sites. It ought to......IMHO

Larry     

-----Original Message-----
From: brownfields-bounces@lists.cpeo.org
[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Terry J. Harris
Sent: Friday, December 11, 2009 1:06 PM
To: 'Brownfields Internet Forum'
Subject: Re: [CPEO-BIF] Asarco Everett, Washington smelter site

I can't speak to Everett, but the $436 million going to the Coeur
d'Alene
basin is nowhere near the total that will be necessary here. That's not
to
say that this isn't completely wonderful news, though.  ASARCO had other
companies in the region contributing to the North Idaho mine waste mess,
but
those bankruptcies were, well, bankrupt.  Superfund has been paying the
bills for quite some time, and unfortunately will be doing so for a long
time after the ASARCO money dries up.  

Terry Harris
Executive Director 
Kootenai Environmental Alliance
408 Sherman Ave. # 301
Coeur d'Alene, ID 83814
www.kealliance.org



-----Original Message-----
From: brownfields-bounces@lists.cpeo.org
[mailto:brownfields-bounces@lists.cpeo.org] On Behalf Of Lenny Siegel
Sent: Friday, December 11, 2009 9:14 AM
To: Brownfields Internet Forum
Subject: [CPEO-BIF] Asarco Everett, Washington smelter site

[Someone on this list must know more about this. Asarco reportedly 
declared bankruptcy "after being overwhelmed by the cleanup costs." But 
it has just emerged from bankruptcy and agreed to make substantial 
($1.79 billion) cleanup payments. Is that enough money? How does this 
differ from the auto industry bankruptcies, where at least one of the 
big three U.S. automakers (Chrysler) appears to have washed it hands of 
its environmental liabilities at closed plants. - LS]


Asarco must pay to clean Everett mess

By Debra Smith
Everett Herald (WA)
December 11, 2009


EVERETT - For decades, people in north Everett have lived with a toxic 
legacy.

A long-ago smelter left behind soil laden with arsenic. While the worst 
contamination has been cleared away, the area has never been completely 
set right.

That toxic legacy may be near its end after an announcement Thursday 
that the state will receive $44.7 million to clean up contamination in 
Everett.

...

The mining company paid a total of $1.79 billion to settle environmental

claims it faced during the company's bankruptcy proceedings. Asarco 
operated copper, lead and other heavy metal mines and smelters across 
the West for the past century, but most have closed and require 
extensive remediation.

The company sought bankruptcy protection four years ago after being 
overwhelmed by the cleanup costs.

...

For the entire article, see
http://www.heraldnet.com/article/20091211/NEWS01/712119883&news01ad=1

-- 


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org



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