Paul Peronard, the EPA's project manager of the Libby site, said the sum should be enough to cover cleanup costs but acknowledges that there is debate among residents over "how clean is clean."
"We think it's a fair and reasonable deal," he said. "We'll make it work."
Grace operated the vermiculite mine and processing facilities in and around Libby between 1963 and 1990. In 2003, the federal district court in Montana awarded the EPA more than $54 million for cleanup costs incurred by the EPA through Dec. 31, 2001. However, it was not paid because Grace was reorganizing in bankruptcy court.
Yesterday's agreement covers the 2003 judgment, cleanup costs since Dec. 31, 2001, and costs in- curred in the future, the government said in a statement.
It is subject to bankruptcy court approval. During a 30-day comment period which began yesterday, a creditor could object and cause the judge to call hearings about whether it should stand.
The EPA will put the cash settlement into a special account within the Superfund to cover past and future costs of cleaning or demolishing buildings, excavating and removing of soil, providing health screenings for Libby residents and former mine workers, and expenses related to the investigation, according to documents Grace filed with the Securities and Exchange Commission late yesterday.
Grace filed for Chapter 11 bankruptcy in 2001 to protect itself from 135,000 asbestos-related claims spanning decades. A U.S. Bankruptcy Court judge in Wilmington, Del., is considering how much it will cost Grace to resolve its lawsuits and exit bankruptcy.
Estimates made by consultants hired by the company and the claimants vary widely, from $382 million to $6.2 billion.
Grace employs 6,500 people in 40 countries. The company's shares closed up $2.19 yesterday at $21.26.
allison.connolly@baltsun.com
Sun reporter Hanah Cho contributed to this article.
