Monday, January 12, 2015

DuPont forming spinoff to clean up NJ Superfund sites

The federal government is seeking damages for the pollution caused by the munitions plant DuPont
operated in Pompton Lakes, NJ for decades.  

"DuPont plans to create a spinoff company that would take on the environmental liability for about 190 contaminated sites across the country, including DuPont’s former munitions facility in Pompton Lakes, one of its most costly cleanup sites," James M. O'Neil reported yesterday in The Record.
"The change is not expected to slow progress on cleanups in the short term, state and federal officials said. But it raises longer-term questions about whether the move could insulate DuPont from future cleanup and natural resource damage claims, particularly if the spinoff, called the Chemours Co., developed financial problems.
"DuPont said in recent filings with the Securities and Exchange Commission that the new company would be financially sound. It said the environmental liabilities for the 190 sites is estimated at nearly $300 million, including $87 million in expected cleanup costs for Pompton Lakes. Those costs are not expected to have much impact on the new company’s financial position, liquidity or ability to operate, DuPont said.
"But DuPont also cautioned that “expenditures are subject to considerable uncertainty.” The company acknowledged that cleanup and other liability costs could climb to more than $1 billion."

Related environmental news stories:
DuPont's Chemours spinoff also cuts away cleanup bills - The News Journal
DuPont Names Spin-off 'Chemours' - The Biological SCENE

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