Honeywell International Inc. and International Paper Co. have signed a consent decree with federal regulators to clean up mercury, PCBs and other contaminants from an EPA Superfund site in North Carolina.
The settlement documents set the initial “estimated cost of the work” at $16.2 million. The consent decree with the Environmental Protection Agency was signed April 14. It was filed Thursday, along with a complaint the U.S. Department of Justice filed to recover the costs of cleaning up contamination on 24 acres that Honeywell (NYSE: HON) owns on the Cape Fear River in Columbus County.
There will be a 30-day period for public comment on the proposed settlement.
By the terms of the agreement, Honeywell and International Paper (NYSE: IP) will address contaminated soils and sediments by treating some contaminants in place, storing some contaminants on site and handling others by treatment off-site. The two companies will also reimburse the United States for all past and future costs associated with the cleanup.
In exchange, the government agrees not to sue, and the companies will be protected from suits by third parties.
A Honeywell predecessor company first purchased the site in 1963 for a plant to produce chlorine gas, caustic soda and bleach for an International Paper plant on 1,300 acres adjacent to the Honeywell site.
“The environmental benefits that will result from today’s settlement are a win for the communities near this Superfund site,” said EPA Acting Regional Administrator Mary S. Walker. “This agreement demonstrates EPA’s commitment to hold companies responsible for contamination they caused.”
The announcement of the decree and complaint did not discuss how much it might cost to clean up the site. But the consent decree notes that “In order to ensure completion of the work (the companies) shall secure financial assurance, initially in the amount of $16,200,000 (estimated cost of the work), for the benefit of EPA.”
The DOJ complaint, filed in the Eastern District of North Carolina, says Honeywell and International Paper are liable for historic industrial discharges of metals, including mercury, and polychlorinated biphenyls (PCBs) at the site.
“This settlement incisively corrects historic environmental issues impinging on the Cape Fear River,” said Assistant Attorney General Jeffrey Bossert Clark of the DOJ’s Environment and Natural Resources Division.
Honeywell is moving its headquarters from New Jersey to Charlotte. The first 150 to 200 executives and other headquarters workers are expected to be in Charlotte by September. By 2024, the company expects to have as many as 750 workers in the city.