McWane, Inc. Resolves Environmental Issues with EPA Through Innovative and Transparent Settlement

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Jul 14, 2010, 12:39 ET

BIRMINGHAM, Ala., July 14 /PRNewswire/ -- Under an agreement announced today, McWane, Inc., the United States Environmental Protection Agency, the United States Department of Justice and the states of Alabama and Iowa have reached a landmark agreement for an innovative resolution of past environmental issues at McWane. President Ruffner Page, Jr. released the following statement:

"In 2004 we proposed to EPA and DOJ a transparent and innovative framework for the resolution of past civil compliance issues at our company. DOJ and EPA accepted our proposed framework, and today we are pleased to announce the success of our efforts," said Page. "The proposed Consent Decree announced today with EPA will include a comprehensive settlement of all outstanding historical civil environmental enforcement matters at 28 of our plants, some of which date back more than 12 years in the past. This settlement establishes a fresh and positive relationship with EPA that will help us maintain our position as the industry leader in environmental, health and safety performance."

"Under our proposal, we agreed to turn over to a third party mediator results of prior environmental audits that we had conducted at our plants through independent, third-party auditors during two separate years," said Page. "The mediator reviewed the audit results and recommended appropriate resolutions of the issues. These recommendations, together with issues identified by EPA and participating state environmental agencies, provided the foundation for negotiating the final settlement. To our knowledge, we are the first company to offer this innovative procedure, and it demonstrates an extraordinary level of openness and cooperation."

Over the past 10 years McWane has become the foundry industry leader in environmental, health and safety performance. "It is important to point out that this settlement does not involve new matters that reflect the current state of our operations; rather, this settlement is the beginning of the final chapter in the resolution of the historical questions that have been under discussion over the past several years. With the goal of 100 percent compliance, 100 percent of the time, we dedicated ourselves to go beyond mere compliance with laws and regulations and to become the model for our industry," said Page. "Along the way McWane has spent more than $300 million on environmental and safety capital projects and operating expenses. We installed a state-of-the-art environmental, health and safety management system, added more than one hundred environmental, health and safety professionals and specialists to our existing staff, and undertook hundreds of thousands of hours of safety and environmental training."

"We would like to thank the EPA and the Department of Justice for their professionalism, which made it possible for us to achieve an agreement that not only serves the interests of justice but also acknowledges our successful and continuing commitment to improving the environment and the health and safety of our team members and our communities," said Ruffner Page.

In recognition of McWane's extraordinary transparency and cooperation, DOJ and EPA afforded the company the maximum cooperation discount possible under statutory guidelines in reaching the final penalty figure. In addition, McWane has agreed to implement several Supplemental Environmental Projects at facilities and in communities around the country as part of the settlement. Those projects include:

The installation of systems designed to eliminate mercury from the air emissions at Tyler Pipe Company in Tyler, Texas and Pacific States Case Iron Pipe Company in Provo, Utah. These controls are similar to those installed at McWane's Atlantic States Cast Iron Pipe Company plant in Phillipsburg, NJ, that was the first foundry in North America to install such a system. McWane will also carry out testing of the efficiency and cost of alternative configurations and share the information with EPA in order to aid EPA in its effort to more fully control mercury emissions in the U.S.
The construction of Greenwood Storm Water Management System and Park, located along Village Creek in Birmingham Alabama. The project will contain a natural stormwater collection and treatment system lined with native shrubs and grasses that will filter stormwater from nearby roadways and other areas as it passes through the Park on its way to Village Creek. In addition, it will include a multi-use athletic field, a playground and walking paths for the enjoyment of the surrounding community. McWane has completed the design and is nearing completion of the permitting process. Assuming that all permits and other approvals are issued by the City of Birmingham, groundbreaking should occur in the fall of 2010.

The agreement also requires that McWane continue to operate and improve its state-of-the-art environmental management system to help ensure ongoing compliance.

About McWane, Inc.

McWane is the leading manufacturer of ductile iron pipe, valves, hydrants, and fittings, and its products make up the backbone of vital water distribution and wastewater treatment systems throughout North America, dependably providing the U.S. with clean drinking water. McWane is a family-owned business based in Birmingham, Alabama, and recognized as an innovator in protecting the environment as well as the health and safety of our company's 4,200 U.S. team members . The company operates 25 manufacturing plants including 13 iron foundries across the United States, Canada, Australia, and China.

McWane remains committed to American manufacturing, as one of the few remaining domestic manufacturers in the waterworks industry. Many other companies in the industry have moved their manufacturing operations overseas at the expense of American jobs and to avoid U.S. environmental and workplace health and safety standards. McWane, however, has invested hundreds of millions of dollars to modernize its U.S. plants and make them safe, efficient, and compliant, preserving thousands of well-paying American jobs and the futures of many communities in the process.

Awards and recognitions received by McWane for its success in Environmental, Health and Safety performance include:

As of 2010, seven McWane plants have been admitted into OSHA's Voluntary Protection Program (VPP), a program that recognizes exemplary health and safety programs, and that fewer than 1% of all US workplaces attain. Our goal is 100% participation. No other company in the waterworks foundry industry has a single plant in the VPP program.
In 2009, Clow Valve in Oskaloosa, Iowa, won the 2009 Ergo Cup award for its successful ergonomic solutions, besting the Boeing Company, Bridgestone/Firestone, and GE Energy.
In 2009, Birmingham Business Journal honored McWane President G. Ruffner Page, Jr. as its "Green Business Leader of the Year."
In 2008, Phillipsburg's Atlantic States Cast Iron Pipe Co. received the New Jersey Environmental Stewardship Award.
In 2008, Manchester Tank in Elkhart completed its first year of membership in the Indiana Department of Environmental Management's Environmental Stewardship Program (ESP).
In 2008, Birmingham's McWane Pipe received the Cahaba River Society's Blue-Green Design Innovation Award in recognition of its successful storm/process water recycling system.
In 2007, the Utah Department of Environmental Quality conferred upon Pacific States Cast Iron Pipe Co. its Outstanding Achievement in Pollution Prevention Award, and the Provo/Orem Chamber of Commerce named it Business of the Year.
On April 27, 2007, the Clow Valve metal casting facility received an Incident Rate Award from the Iowa/Illinois Safety Council for having an incident rate below the national average.
In January 2006, Atlantic States became the first foundry in North America to apply control technology to substantially limit mercury emissions. The new technology reflects an investment of more than $9 million. Atlantic States has surpassed compliance with standards set by the EPA under the Clean Air Act, and met New Jersey Department of Environmental Protection mercury regulations far ahead of its compliance date of January 2010.