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."

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