INDIANAPOLIS, Aug. 23, 2012 /PRNewswire/ -- A pending settlement by Vertellus Specialties Inc., a leading specialty chemicals company, of federal and state claims involving a former West Virginia manufacturing site progressed on August 20 with the filing of a proposed Consent Decree in the Federal District Court for the Northern District of West Virginia. The proposed Consent Decree concerning the Big John's Salvage – Hoult Road Superfund Site (BJS Site) is awaiting court approval following a public comment period. The settlement in principle, agreed upon in the first quarter, will conclude longstanding negotiations with the U.S. Environmental Protection Agency (USEPA) and the West Virginia Department of Environmental Protection (WVDEP) regarding reimbursement of past government costs and clean up obligations at the BJS Site. A predecessor to Vertellus, Reilly Tar and Chemical Corporation, owned a portion of the BJS Site and operated a coal tar processing plant there from 1933 to 1973.
"We are pleased to reach a fair resolution to the BJS Site matter, one that is also a reflection of our objective to cost-effectively resolve our remaining legacy liabilities in a manner that brings value to our equity partners and bond holders," said Vertellus President & CEO Richard V. Preziotti. "Vertellus will continue to work closely with the USEPA, as well as with the WVDEP, to implement our obligations at the BJS Site."
Under the terms of the proposed Consent Decree Vertellus will install a low-permeability cap on the uplands portion of the BJS Site, expand the groundwater collection and treatment system, and remove visibly stained sediments in the Monongahela River, among other actions. Vertellus estimates that it will expend approximately $8 million fulfilling its obligations through 2016 and has established appropriate reserves for planned remediation and future contingencies.
Exxon Mobil Corporation and CBS Corporation are parties to the proposed settlement and have agreed to contribute $16 million in funds to meet payment obligations for past costs and future work related to the BJS site.
About Vertellus Specialties Inc.
Vertellus is a specialty chemicals company focused on the manufacture of ingredients used in pharmaceuticals, personal care, nutrition, agriculture, and a host of other market areas affected by trends favoring "green" technologies and chemistries. Vertellus is the #1 global producer of pyridine and picolines, specialty pyridine derivatives, DEET, castor oil derivatives and systems, and citrate polymer additives and systems, and the world's #2 producer of Vitamin B-3. Vertellus benefits from a technically advanced global manufacturing base and has approximately 800 employees. Vertellus is headquartered in Indianapolis, Indiana.
SOURCE Vertellus Specialties Inc.