Billion dollar Superfund settlement - MSCAd case #620827

A 2000 settlement with Aventis CropSciences USA, Inc., now Bayer CropScience, will fund approximately $1 billion in future clean-up costs at the Iron Mountain Mine Superfund Site, historically the largest point source of toxic metals in the country and the source of the most acidic mine drainage in the world. The mine discharged an average of a ton a day of toxic metals into the Upper Sacramento River, a critical salmon spawning habitat. The settlement, on behalf of the U.S. EPA, the U.S. Department of the Interior, the U.S. Department of Commerce and several state agencies, is one of the largest settlements with a single private party in the history of the federal Superfund program.

Under the terms of the settlement, Avantis will pay for the IT Group to operate and maintain the site cleanup over the next 30 years. Avantis will also remit $514 million to the federal and state governments in 2030 to pay for future site costs. This unique funding mechanism enables Aventis - who is securing the funding through a financial assurance and insurance vehicle specifically tailored for this settlement - to pay roughly $160 million to fund the long-term operation and maintenance at the site (an estimated cost of $200 to $300 million), a payment to the U.S. EPA of approximately $8 million and a payment of $10 million to the natural resource trustees to fund natural resource restoration projects. The settlement also waives $150 million in past costs, bringing the total amount to close to $1 billion. It guarantees long-term funding through an insurance instrument with a AAA rating.

Advisen’s Master Significant Cases & Actions database (MSCAd) tracks cases on both an individual and topic related basis. Environmental cases can be searched by cause of contamination: this event is classified under Zinc Contamination (Related ID No. 8070), Cadmium Contamination (Related Case ID No. 8074) and Copper Contamination (Related Case ID No. 8075).

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