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Agreement Reached with EaglePicher

Contact:  Robert McCann (517) 241-7397
Agency: Environmental Quality


July 27, 2006

The Department of Environmental Quality, in conjunction with the United States Environmental Protection Agency, has reached an agreement with EaglePicher Inc. and its Michigan affiliates in U.S. Bankruptcy Court. The agreement will guarantee funding to go towards addressing known and potential environmental contamination at sites that EaglePicher owns in Michigan.

“This agreement protects our environment, and places the financial burden of cleaning up known contamination where it belongs – with EaglePicher,” said DEQ Director Steven E. Chester. “The result of this agreement will certainly be a benefit for the affected communities, and the environment.”

The settlement agreement was approved by the United States Bankruptcy Court in Cincinnati, Ohio, on July 27, 2006. EaglePicher, which owns numerous plants throughout the country, filed for bankruptcy on April 11, 2005.

Through the settlement agreement, EaglePicher agrees to establish a Custodial Trust to set aside a total of $4.6 million for environmental cleanup of four sites in Michigan. Of that total, $2.4 million will be used to address the Industrial Drive and South Street properties in Hillsdale, while $2.2 million will be used to address sites in Inkster and River Rouge.

The affected properties and their cleanup will be administered by a court-appointed trustee with oversight by the DEQ.

In addition to the Michigan settlements, the case involved settlements among EaglePicher, EPA and three other state environmental agencies totaling more than $16 million. The collective settlements and the other affected states include: Illinois (one property; $1,150,000), Kansas (three properties; $7,191,000), Oklahoma (two properties; $705,000), plus establishment of a trust to cover administrative costs of the trustee ($2,940,000). The judge in the case also ordered EaglePicher to place $1,125,000 in a trust for two properties in Ohio.

Editor’s note: DEQ news releases are available on the department’s Internet home page at www.michigan.gov/deq.

“Protecting Michigan’s Environment, Ensuring Michigan’s Future”

Revised July 27, 2006 by Pat Watson

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