23 April 2010 00:18 [Source: ICIS news]
HOUSTON (ICIS news)--A proposed legal settlement between LyondellBasell and environmental regulators in the US would short change efforts to clean up a section of the Kalamazoo River, according to three members of Congress from Michigan.
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“I am committed to the full cleanup of the Kalamazoo River Superfund project, which is the largest in the state of
“More specifically, the settlement allocates only $103m for LyondellBasell’s share of the cleanup of the Kalamazoo River Superfund site; a sum the company estimated in court documents to be as high as $2.5bn,” according to the letter to the Department of Justice.
Senator Debbie Stabenow (Democrat-Michigan), and Representative Fred Upton (Republican-Michigan) also voiced their concerns.
The $1.35bn deal was made up of several parts.
Lyondell would allow the regulators to have $1.18bn in unsecured claims. In general, creditors recover only a portion of their unsecured claims.
In addition, Lyondell would pay $108.4m to a trust that will clean up several contaminated sites.
Another $61.6m would go to US and
In all, the money would pay to clean up at least 15 sites in eight states, based on a statement by the US Attorney's Office.
Some regulators could receive more money if Lyondell receives proceeds from pending insurance claims.
A hearing for the settlement was scheduled for Friday.
On the same day, the court was scheduled to confirm Lyondell's reorganisation plan. Lyondell could leave bankruptcy after the court confirms its plan.
($1 = €0.75)
Additional reporting by Al Greenwood
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