Department of Justice Seal

FOR IMMEDIATE RELEASE

ENR

WEDNESDAY, DECEMBER 16, 1998

(202) 514-2008

WWW.USDOJ.GOV

TDD (202) 514-1888

OWENS-ILLINOIS INC. TO PAY $13.8 MILLION FOR LIPARI LANDFILL CLEANUP Federal, State Governments to Receive Reimbursement For Cleanup Of Superfund Site

WASHINGTON, D.C. -- The Department of Justice and the Environmental Protection Agency today announced that Owens-Illinois Inc. will pay $13.8 million in costs for work done to clean up areas adjacent to the Lipari Landfill in Southern New Jersey. The Lipari Landfill cleanup effort by federal and state governments has been a top priority for EPA, and has resulted in the re-opening of Alcyon Lake and nearby community ballfields and picnic areas.

"In settling its liability for this phase of the cleanup after numerous years of litigation, Owens-Illinois will pay substantially more than it would have paid if it had agreed to take responsibility for its actions years ago," said Lois J. Schiffer, Assistant Attorney General for Environment and Natural Resources at the Department of Justice. "The good news is that this money will now be put into a reimbursement fund to help clean up other Superfund sites and create safe, livable communities across this nation."

"We are committed to ensuring that responsible parties pay to cleanup the pollution they cause," said Steve Herman, EPA's Assistant Administrator for Enforcement and Compliance Assurance. "EPA will continue working to protect public health and the environment through its enforcement and cleanup efforts at this and other Superfund sites across the country."

According to the settlement, Owens-Illinois will pay $13.3 million and $515,000 in reimbursement of the costs incurred by the United States and the State of New Jersey, respectively, for the environmental cleanup of the areas adjacent to the former Landfill.

"This is the last defendant to settle in the Lipari Landfill lawsuit," said Jeanne M. Fox, EPA's Regional Administrator. "The more than $13 million settlement, added to past settlements for Lipari, means the U.S. will recoup nearly 90 percent of its cleanup costs at this notorious site. This final settlement should also send a clear message that polluters who jeopardize the health of the environment and local communities will pay for their actions."

The Lipari Landfill Superfund Site is located in Mantua Township, Gloucester County, New Jersey. It has been ranked No.1 on EPA's National Priorities List and occupies approximately 50 acres near the towns of Pitman and Glassboro. The site includes the former Landfill, Chestnut Branch Marsh (a 4.5-acre wetland), two creeks (Chestnut Branch and Rabbit Run), and Alcyon Lake.

Cleanup of the site has been mostly completed. All construction components of remedial action addressing contamination at the Landfill, the marsh, creeks and lake, including soils, sediments and underlying ground water in the area, have been concluded. The completed portions of the cleanup resulted in the re-opening for public use of Alcyon Lake in October 1995, closed to recreational activity in the 1950s. Other parts of the remedial action have also resulted in reuse of the site for community ballfields and picnic areas.

Owens-Illinois, along with a number of other defendants including Rohm & Haas Inc., and Manor Care Inc., were originally sued in 1985 under the Comprehensive Environmental Response, Compensation and Liability Act (Superfund law) by the Department of Justice on behalf of the Environmental Protection Agency and by the State of New Jersey. The governments sought cleanup of the Lipari Landfill and adjacent contaminated areas, as well as the reimbursement of costs spent by the United States and the State of New Jersey at the site.

Owens-Illinois has paid almost $7 million in a previous settlement of its liability for the remedial costs incurred during earlier phases of the cleanup. With today's settlement, Owens-Illinois' total payment in reimbursement of site costs will be almost $21 million. Money received from the settlement will be put into a fund controlled by the federal government and used to clean up other Superfund sites across the country.

As a result of today's settlement with Owen-Illinois and settlements with responsible parties, the United States and the State of New Jersey have recovered more than $120 million in cash and cleanup work -- almost 90 percent of the cleanup costs totaling $140 million for capping the Lipari Landfill, treating ground water, and removing contaminated lake, marsh and creek soils.

"This settlement caps a sad chapter in environmental spoilage in this state," said Faith S. Hochberg, the U.S. Attorney for New Jersey. "The good news is that public facilities and natural resources are being restored and returned to the public thanks to settlements totaling more than $120 million."

The settlement was lodged today in U.S. District Court in Camden, New Jersey. The decree is subject to public comment for the next 30 days before it will be presented to the court for approval.

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