EPA, DuPont Finalize
Settlement over Chemical Used To Make Teflon
November 30, 2005 — By Associated Press
CHARLESTON, W. Va. — Federal
regulators have reached an agreement with DuPont to settle allegations
the company hid information about the dangers of a toxic chemical known
as C8 used in the manufacture of Teflon.
Lawyers for DuPont and the U.S. Environmental Protection Agency told an
administrative law judge on Nov. 23 that they had reached a final
agreement, but needed more time to put together the paperwork. Judge
Barbara A. Gunning then gave the parties until Jan. 13 to file the
formal agreement.
"The request for additional time is to accommodate EPA's procedural
rules which require the Environmental Appeals Board to review and
approve any settlement reached by the parties," the EPA said Tuesday in
a statement.
Officials from both the EPA and DuPont refused to release terms of the
deal.
"We are not commenting on that particular issue at this time," said
Robin Ollis, spokeswoman for DuPont Co.'s Washington Works plant south
of Parkersburg, W.Va.
The EPA alleged that DuPont for 20 years covered up important
information about C8's health effects and about the pollution of water
supplies near the company's Washington Works plant.
Under federal law, DuPont could face civil fines of more than $300
million for not reporting information that showed C8 posed "substantial
risk of injury to health or the environment." The company has set aside
$15 million to cover the costs of the lawsuit, according to corporate
disclosures filed with the Securities and Exchange Commission.
DuPont also faces a federal criminal investigation of its actions
concerning C8 pollution, the company has told shareholders. Since May,
DuPont and the EPA repeatedly have said they were close to a settlement
in the civil case, but had one item left to resolve. They would not
identify that item.
DuPont has maintained that C8, also known as perfluorooctanoic acid or
PFOA, has no negative health effects. In February, DuPont settled a
class-action lawsuit for $107.6 million brought by Ohio and West
Virginia residents in 2001, alleging the Wilmington, Del.-based company
intentionally withheld and misrepresented information concerning the
nature and extent of the human health threat posed by C8.
The EPA in July 2004 filed a complaint that alleged DuPont had caused
"widespread contamination" of drinking water supplies near its
Washington Works plant. The EPA also alleged DuPont never told the
government the company had water tests that showed C8 in residential
supplies in concentrations greater than the company's own internal
limit.
The EPA alleged DuPont withheld the results of a test showing that at
least one pregnant worker from the Washington Works plant had
transferred the chemical from her body to her fetus. That information,
the EPA said, supported animal tests showing that C8 "moves across the
placental barrier."
The EPA said that agency efforts to understand C8's health effects
"might have been more expeditious" if DuPont had submitted the human
test results in 1981.
Shares of DuPont rose 32 cents to close at $43.43 Tuesday on the New
York Stock Exchange.
Source: Associated Press
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