FOR IMMEDIATE RELEASE
October 13, 2009
Indiana participates in Dana cleanup with $2 million stock distributionAttorney General Zoeller: IDEM agreement preserves jobs at Angola industrial site
ANGOLA, Ind. – The State of Indiana will obtain approximately $2 million in stock from the Dana Corp. in connection with the cleanup of the former Dana-Weatherhead industrial site that the State will then transfer to the City of Angola and the current employer there.
The stock distribution stems from an agreement with Dana Corp. resolving environmental claims brought by the Indiana Department of Environmental Management through the Indiana Attorney General’s Office. With the stock distribution, the current owner of the industrial site, Univertical Corp., can continue its Angola operation that employs 55 people.
“Protecting the public from a confirmed source of groundwater pollution and the public’s health are our primary concerns,” Indiana Attorney General Greg Zoeller said. “This public-private partnership will help a local employer remain in the community and keep jobs in Angola.”
Zoeller today joined Angola Mayor Richard Hickman in announcing that the Indiana Department of Environmental Management, or IDEM, would receive approximately 300,000 shares of stock in the reorganized Dana Corp. valued at approximately $2 million. Of that, IDEM will immediately transfer 50,000 shares to Univertical with the rest to the City of Angola. The stock is intended to reimburse the city and Univertical for costs they are contributing for cleaning up pollutants from the industrial site.
The Attorney General’s office led the negotiations resulting in the agreement to resolve the longstanding environmental claims IDEM brought against Dana Corp. During those negotiations, IDEM led technical environmental discussions to determine the requirements, methodologies and costs for cleaning up the former Dana-Weatherhead site so that the City of Angola municipal water supply would be protected.
The former automotive parts foundry and machining plant that Dana operated at 203 Weatherhead St. in Angola closed about 16 years ago. Because soil on the site was polluted with a chlorinated solvent, IDEM has for several years required Dana to operate a groundwater-treatment system to keep the groundwater from contaminating the city’s water supply.
But Dana Corp. filed for Chapter 11 bankruptcy in 2006; and once it emerged from bankruptcy reorganization, Dana argued that it no longer would have a legal responsibility for cleaning up its former site or for operating the groundwater-treatment system that keeps the pollutants away from the city’s drinking water. The nearest city well is just 600 feet away.
A prior state settlement with Dana in 2008 resulted in $5 million for environmental claims on certain other former Dana industrial sites in Indiana. Because of the complexity of the immediate threat to Angola’s water supply, IDEM’s claim at the Angola site remained unresolved; but in the interim, Dana agreed to continue operating the on-site groundwater treatment system. On Sept. 23, the Bankruptcy Claims Monitor approved the IDEM-Dana settlement for the Angola site, with IDEM assuming responsibility for the treatment system.
Univertical Corp., the company that now operates a manufacturing plant making materials for the worldwide metal-finishing industry on the former Dana site, did not cause the contamination. But the cleanup costs Univertical faced were daunting and would have forced the company to relocate if not for public-private participation in the cleanup effort, company officials have said.
Through negotiations led by the Attorney General’s office and Deputy Attorney General Tim Junk in the settlement of Dana’s bankruptcy case, IDEM will receive Dana stock that it immediately will transfer to Angola and Univertical. In August, the City of Angola approved the agreement and paid $1 million toward cleanup. Steuben County is contributing an additional $1 million and Univertical another $1 million. A state agency, the Indiana Finance Authority, offered the city a loan for the remainder of the cleanup cost. The site cleanup is scheduled to begin later this year.
“These types of negotiations are always challenging, and so I want to commend Mayor Richard Hickman and Univertical CEO Chuck Walker for going the extra mile to reach an agreement that benefits all sides. At a time when Hoosiers are concerned about the economy, I am pleased that we can preserve jobs in Angola. At a time when Hoosiers are concerned about the environment, I am pleased that we can start the process of removing a source of pollution without the burden of footing another bill.”
“The staff of IDEM’s State Cleanup Program worked hard to provide regulatory and technical information that enabled a claim to be presented in Bankruptcy Court, and we sincerely appreciate the assistance and support of Attorney General Zoeller and Mr. Junk. This project could not have happened without everyone working together,” IDEM Commissioner Thomas Easterly said. “The City of Angola deserves credit for its great commitment to keeping a viable employer in the community and for efforts to protect the community’s drinking water resources. Univertical deserves credit for its willingness to work hand-in-hand with IDEM, the City of Angola, and all involved parties. My staff and I remain committed to providing project management throughout the duration of the project and to maximizing the value of the stock as much as possible.”
“This is an example of a rare public-private partnership between business, the city, county and state. Mayor Richard Hickman from the City of Angola showed extensive leadership in communicating with the city and county about the magnitude of the problem left by Dana,” Chuck Walker, CEO of Univertical, said. “Our business had expansion plans put on hold for a number of years while our claims against Dana were pending. Now we can do what we do best, continue to create jobs and produce materials for other businesses.”
“I am extremely appreciative of all the hard work and the collaboration of ideas that has brought this project together,” Mayor Hickman said. “This was truly a public and private partnership in solving this problem that allows us to clean up an environmental problem and keep a viable company in our city.”
Zoeller commended Deputy Attorney General Tim Junk who helped negotiate the agreement with Dana, Univertical, Angola and IDEM to help defray costs of the cleanup. “While the Environmental section of the Attorney General’s office may not be as well known as our Consumer Protection Division, the attorneys in that unit work diligently in a very complex area of regulatory law in order to ensure that Hoosiers are protected from hazards,” Zoeller added.
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Related Soundbite: Attorney General Zoeller Comments on Dana Settlement
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