State may get $5.1M for asbestos cleanup

Montana Department of Environmental Quality and W.R. Grace have reached a proposed settlement that would provide about $5 million to the state for the cleanup of asbestos in Libby.

The DEQ is now requesting public comment on the proposed settlement.

This DEQ settlement is separate from the recent settlement of claims by the U.S. Environmental Protection Agency for the Libby site. If, after considering comments received, the DEQ and the court overseeing the Grace bankruptcy both approve the DEQ settlement, the DEQ will receive a claim in the Grace bankruptcy for $5.1 million above the $250 million to be paid under the EPA settlement.

When the EPA settlement was announced April 7, Mont. Gov. Brian Schweitzer noted the state’s desire to hear the views of the community. One point emphasized in the community’s comments on that settlement was the need for adequate funding for operation and maintenance of the remedy.

All the funds received on the DEQ’s claim and any interest earned on those funds will be used at the Libby site for costs such as operation and maintenance.

“Since Grace is already paying $250 million for cleanup costs here, we were not going to get a lot of additional funding through the bankruptcy,” said Richard Opper, director of DEQ. “We are pleased that we were able to get at least a significant sum to help ensure that there is adequate funding to do this cleanup right.”

“The EPA settlement currently earmarks $11 million for operation and maintenance. This settlement increases that funding by over $5 million,” added Sandi Olsen, the DEQ Remediation Division Administrator. “Of course, operation and maintenance comes at that end of the process, so there should be a substantial amount of interest earnings to cover these costs as well.”

The proposed settlement covers residential and commercial property cleanups in Libby and Troy. Certain areas such as the Zonolite Mine and the area around the mine, as well as Rainey Creek and the Kootenai River, are to be addressed separately.

The proposed settlement agreement and information about providing comment are available on the DEQ Web site at www.deq.mt.gov , or through the DEQ’s Superfund information line at 1-800-246-8198. Comments must be received by July 7.