EPA hosting meeting about contaminated groundwater in Libby

The Environmental Protection Agency will host a public meeting in Libby about the Libby Groundwater Contamination site Tuesday, Aug. 5.

The meeting will be held at 6 p.m. in the Ponderosa Room at City Hall at 952 East Spruce St.

The agency’s presentation will include the seventh five-year report. The report has been prepared because hazardous substances, pollutants or contaminants remain at the site greater than levels that allow for unlimited use and unrestricted exposure. 

The site consists of two operable units (OUs), both of which are addressed in the report. OU1 addresses the alternative drinking water supply initiative and OU2 addresses contaminated soil and groundwater in the upper and lower aquifers.

Groundwater contamination occurred following the operation of a lumber and plywood mill between 1946 and 1969. Mill operations included treating wood with creosote, pentachlorophenol (commonly referred to as PCP) and other chemicals. Spills and disposal practices at the site contaminated soil and groundwater with hazardous chemicals. 

Compensation from companies for groundwater contamination in Libby dates back to 1985 when Champion International Corporation instituted a “Buy Water Plan.” 

That year, Champion purchased St. Regis Co., which — along with J. Neils Lumber Co. — was responsible for wood treatment fluids leaching into the aquifers beneath the city from 1946 to 1969, according to court documents.

After detecting the chemicals in the water Libby-area homeowners were drawing from their wells, Champion offered to provide an alternative supply to affected residents.

In 1979, EPA discovered PCP contamination in well water at a nearby home. Cleanup, operation, maintenance activities and groundwater monitoring are ongoing.

Local residents historically used the upper aquifer (typically the shallow subunit) groundwater for drinking and irrigation. A city ordinance now prohibits drilling groundwater wells for human consumption or irrigation in the city of Libby. Instead, city residents use public water for human consumption and irrigation.

Libby city officials recently approved a new deal with International Paper (IP) to pay for water. The deal began July 1, 2025, and run for 10 years. The arrangement will automatically renew for another 10-year period unless the EPA makes a formal determination that it no longer requests or requires the groundwater ordinance.

Part of the deal with IP is a one-time payment of $1.4 million and then annual payments of $381,892, which are subject to inflation increases.

Soil and groundwater remediation have been ongoing at the site since the late 1980s under the oversight of the EPA and Montana Department of Environmental Quality. 

The site includes two groundwater plumes (upper and lower aquifers) that extend laterally from a former waste pit area to the north-northwest as well as contaminated soil areas and remedial features underlying the original wood-treating facility. 

The former mill property is also OU5 of the Libby Asbestos Superfund Site, where the only contaminant of concern being addressed is asbestos. This OU was partially deleted in 2024. The former mill property is used for light industrial, commercial and recreational purposes. 

A portion of the former mill property is owned by the Lincoln County Port Authority. The Port Authority has sold some of its property to Noble Investment. 

Noble Investment is currently developing the area for industrial and commercial uses. Plans include new infrastructure, including new water and sewer services and roads into the planned development area.