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Tuesday, October 13, 2009

Environment - "Indiana participates in Dana cleanup with $2 million stock distribution" [Updated]

The cleanup of the contaminated former Dana site in Angola has been the subject of a long list of ILB entries. This entry from Feb. 11th included this quote from the Angola Herald-Republican:

The soil and air at and surround the former Dana facility have been polluted with oil and chloride and threaten the city’s water supply. Dana had entered into an arrangement with the Indiana Department of Environmental Management to contain the contamination. However, Dana was absolved of any responsibility through bankruptcy protection.

Before the commissioners approved providing $1 million in Major Moves money for the cleanup on Jan. 20, Commissioner Ron Smith said he was inundated with calls and e-mails from people wanting the county to help pay for the estimated $5.5 million cleanup. After the decision was made, the communication stopped. “That should tell you something,” Smith said Tuesday.

While the commissioners approved providing the money to the city of Angola for either environmental remediation or relocating wells, there were no other conditions placed on the funds. The council tightened up the requirements somewhat. “I am not in favor of just handing them a million dollars,” Councilwoman Linda Hansen said.

Ultimately the measure approved by the council allows the money to be spent once it is no longer in an investment vehicle and invoices are presented. The money can only be spent on environmental cleanup or moving wells as it relates to the Univertical property. The measure passed on a 7-0 vote, though in previous meetings of the council it appeared the measure might only squeak through on a 4-3 vote.

As it stands, with $1 million apiece committed by the county, Angola and Univertical owner Chuck Walker, thhe project is still $2.5 million shy of being funded.

IDEM has said it would commit money from the sale of Dana stock it holds to the project. The value of the stock has been estimated at between $210,000 and $3 million.

“We have identified the range of cash we could expect from the settlement, and will work to ensure the most efficient use of those funds,” said Amy Hartsock, spokeswoman with IDEM. “We’ll be working further with all involved parties concerning funding details, and we look forward to working in partnership with the city and the county.”

Today Attonrey General Greg Zoeller announced:
The State of Indiana will obtain approximately $2 million in stock from the Dana Corp. in connection with the cleanup of the former Dana-Weatherhead industrial site that the State will then transfer to the City of Angola and the current employer there.

The stock distribution stems from an agreement with Dana Corp. resolving environmental claims brought by the Indiana Department of Environmental Management through the Indiana Attorney General’s Office. With the stock distribution, the current owner of the industrial site, Univertical Corp., can continue its Angola operation that employs 55 people.

“Protecting the public from a confirmed source of groundwater pollution and the public’s health are our primary concerns,” Indiana Attorney General Greg Zoeller said. “This public-private partnership will help a local employer remain in the community and keep jobs in Angola.”

Zoeller today joined Angola Mayor Richard Hickman in announcing that the Indiana Department of Environmental Management, or IDEM, would receive approximately 300,000 shares of stock in the reorganized Dana Corp. valued at approximately $2 million. Of that, IDEM will immediately transfer 50,000 shares to Univertical with the rest to the City of Angola. The stock is intended to reimburse the city and Univertical for costs they are contributing for cleaning up pollutants from the industrial site.

The Fort Wayne Journal Gazette had this coverage Oct. 14th.

Posted by Marcia Oddi on October 13, 2009 12:39 PM
Posted to Environment