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SETTLEMENT PROTECTS SETTLING STRATFORD HOMEOWNERS FROM SUPERFUND COSTS

Release Date: 08/26/1998
Contact Information: Alice Kaufman, EPA Press Office, (617) 918-1064

Boston - Fifty-eight Stratford, Connecticut homeowners whose properties were contaminated with hazardous waste from the Raymark Industries plant received formal notification last week that a settlement had been finalized that protects them from paying any costs associated with the Raymark Industries Superfund Site. The settlement honors New England EPA Administrator John P. DeVillars' promise of two years ago to homeowners that they would not be responsible for any cleanup costs associated with Raymark contamination. Under the settlement, finalized in U.S. District Court in Hartford by Judge Dominic Squatrito, these residents are protected against claims Raymark brought against them in an attempt to recover the costs of cleaning up the contamination from its plant.

The terms of the settlement calls for the 58 homeowners to each pay $1 (one dollar) to both the federal and state treasuries to settle with the governments and obtain their legal protection against Raymark's lawsuits. Under the federal Superfund statute, a party who settles its potential liability with the United States or a state can not be sued by third parties.

"This puts the brakes on Raymark's attempt to finagle a way out of paying its costs of cleaning up hazardous waste contamination by suing homeowners. The rights of homeowners are protected by this judgement," said DeVillars.

In January, 1997, the United States, on behalf of EPA, and the State of Connecticut, each sued Raymark to recover government costs incurred at the Raymark Superfund Site, which includes the Raymark plant and residential properties, along with commercial and municipal locations. Raymark responded to the governments' lawsuits by filing so-called third party claims against Stratford residents on whose property hazardous waste from the Raymark plant had been disposed as fill. The governments obtained an immediate "stay" of those proceedings from the District Court to protect the homeowners from incurring legal costs. The governments worked with the homeowners to prepare the agreement which the Court finalized on August 6th.

From 1919 to 1989, Raymark manufactured friction products, such as brake pads, for the automobile industry, disposing of wastes containing lead, asbestos, PCBs and other hazardous substances at its Stratford manufacturing plant. Raymark dried the waste material and made it available for use as fill material for lawns, playgrounds, and schoolyards. In 1993, the EPA and the Connecticut Department of Environmental Protection began working together to complete the cleanup of contamination Raymark left behind in Stratford. EPA completed its cleanup of the contaminated residential properties in 1995 and the former Raymark plant property in 1997. Plans for cleanup of the Ferry Creek area and surrounding properties where additional Raymark waste was historically disposed are currently being developed by EPA.

The cost of cleaning up the Raymark Site is estimated to exceed $200 million.