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FOR IMMEDIATE RELEASE ENR

THURSDAY, AUGUST 6, 1998 DOJ (202) 514-2008

EPA (312) 353-6218

DOI (612) 713-5312

IN (317) 232-8499

TDD (202) 514-1888

USX SETTLES FEDERAL, STATE ENVIRONMENTAL CLAIMS

Nation's Largest Steel Maker Plans $30 Million Clean-Up of Grand Calumet River

Washington, DC -- USX Corporation, the nation's largest steel maker, has agreed to settle federal and state environmental claims for illegally discharging wastewater from its Gary, Indiana plant into the Grand Calumet River, announced the U.S. Departments of Justice, the Environmental Protection Agency, the U.S. Department of Interior and the State of Indiana today. Among other things, the company will pay $30 million to clean up the River, $22 million on future pollution abatement and a $2.9 million civil penalty. The Gary plant is the largest steel making plant in the nation.

Two consent agreements were lodged today in U.S. District Court in Hammond, Indiana. Under the first, USX will spend approximately $30 million to remove and dispose of nearly 700,000 cubic yards of contaminated sediments from five miles of the River. USX must remove the sediments over the next five years.

"These agreements will help put the 'Grand' back in the Calumet River," said Lois J. Schiffer, Assistant Attorney General for Environment and Natural Resources. "USX will clean up its past pollution and reduce any future pollution. This means a cleaner river for fishing and swimming and a healthier environment for the citizens of Northwest Indiana."

Violating both the Clean Water Act and a 1990 federal consent decree since 1992, USX' Gary facility illegally discharged wastewater contaminated with PCB's, heavy metals (such as iron, lead, zinc, cadmium and chromium), oil and grease, benzene, polycyclic aromatic hydrocarbons and cyanide. The contaminated sediments kill fish, injure migratory birds and release pollutants into the River and Lake Michigan.

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"The cleanup of this stretch of the Grand Calumet River will be a crucial step in the revitalization of the river corridor," said David A. Ullrich, Acting EPA Regional Administrator. "It will result in cleaner water, healthier fish and a visibly improved environment for the people of Gary and all those who enjoy Lake Michigan."

As part of the clean up, USX must restore 32 acres of wetlands next to the river and construct a disposal facility for contaminated sediments, including PCB's, from the river. In addition, USX must improve the Gary facility to eliminate spills and other illegal discharges. The cost of these capital improvements is estimated at $22 million.

The first consent agreement also requires USX to pay a $2.9 million civil penalty.

"Today marks not so much the end of long legal negotiations and planning but the beginning of what will become one of the most exciting environmental projects in Indiana history," said John M. Hamilton, Commissioner of the Indiana Department of Environmental Management. "Within the next five years, decades of environmental neglect will be dredged from the bottom of the Grand Calumet River. That project will mark the beginning of a vital new era for the environment in Northwest Indiana and the Grand Calumet River in particular. The state of Indiana is proud to be partners with federal and local government as well as local industry and the people of Northwest Indiana in this new beginning."

The second consent agreement addresses natural resource damages. Under Superfund authority, USX will buy 139 acres of property for the National Park Service in order to expand the rare dune and swale wildlife habitat along the southern shore of Lake Michigan. A separate 77 acre acquisition for the State of Indiana will enhance wildlife habitat nearer to the River and will increase access for fishermen for recreational use.

"Fish and wildlife habitat along this important waterway will be restored, and the removal of PCB-contaminated sediment along a five mile stretch of the Grand Calumet River, will improve the water quality of Lake Michigan," said Larry Macklin, Director of the Indiana Department of Natural Resources. "Also, 77 acres have been acquired along Salt Creek, about 10 miles east of Grand Calumet. The land will provide people with a new fishing site that should be excellent for trout and salmon, wildlife habitat will be protected, and the new site will help compensate the public for the lost use of an important natural resource."

"What has been accomplished here is a huge step in the process to make northwestern Indiana a better place to live, for people, for wildlife, for all creatures inhabiting this area," added Mat Millenbach, Program Manager for the Interior Department's Natural Resource Damage Assessment and Restoration program. "And the Natural Resources Restoration portion of this achievement has made possible improvements that are historical in their resource significance, including acquisition of important dune and swale habitat, enhanced fishing opportunities, and restoration of stream and shoreline habitat along the Grand Calumet River."

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In addition to the two consent agreements, USX has entered into in an agreement with EPA, known as an administrative order, to identify releases of hazardous materials at its Gary plant and clean up the waste that poses a public health or environmental threat. Entered into under the authority of the Resource Conservation and Recovery Act, the order will help protect the River from re-contamination.

Formerly known as US Steel, USX is based in Pittsburgh.

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