FOR IMMEDIATE RELEASE ENR MONDAY, AUGUST 26, 1996 (202) 616-2765 TDD (202) 514-1888 FEDERAL COURT UPHOLDS RETROACTIVE APPLICATION OF SUPERFUND LAW HOLDS ALCAN CORP LIABLE FOR 1985 OIL SLICK WASHINGTON--The U.S. Department of Justice today announced that a federal appeals court has rejected arguments by defendants that the Superfund law only applies to contamination resulting from toxic wastes disposed of, or stored, after the passage of the "Superfund" law. In an order dated August 22, the U.S. Court of Appeals for the Third Circuit affirmed a trial court decision holding the Alcan Aluminum Corporation liable for cleanup costs resulting from a 1985 release of oily wastes from the Butler Tunnel waste site near Pittston, Pennsylvania. That release, in the wake of Hurricane Gloria, led to the contamination of the Susquehanna River, requiring emergency cleanup actions by the Environmental Protection Agency. Alcan, joined by other defendants, argued on appeal that the government's lawsuit should be dismissed because Alcan's disposal of hazardous waste emulsion into the Butler Tunnel occurred in the late 1970s, prior to the 1980 passage of the Superfund cleanup statute. Alcan's contention relied on a recent Alabama federal district court decision, known as the Olin case, which held for the first time that the Superfund statute does not apply retroactively. The United States argued that Congress intended to impose retroactive liability for contamination resulting from past disposal activities. In a one sentence order, the court rejected the defendant's arguments and affirmed the trial court decision to hold Alcan liable. "We are gratified that the Court of Appeals has declined to turn back the clock on Superfund," said Lois Schiffer, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division. "This decision has reaffirmed the principle that Superfund applies to waste put there in the past, and that those responsible for the contamination rather than taxpayers should bear the costs of cleanup." ### 96-410