$26.5 million goes to central Michigan city polluted by chemical company

Apr 1, 2011

Land and groundwater in the city of St. Louis, Michigan has been contaminated with chemicals from the Velsicol Chemical Company.

Now the city will get $26.5 million to help set up a new water supply  system.

According to the EPA, Velsicol (formerly known as the Michigan Chemical Corporation) "produced various chemical compounds and products at its fifty-four acre main plant site in St. Louis, Michigan, such as hexabromobenzene (HBB), 1,1,1-trichloro-2,2-bis(p-chlorophenyl) ethane (DDT), polybrominated biphenyl (PBB), and tris(2,3-dibromopropyl) phosphate (tris)."

The EPA says the company produced these chemicals from 1936 until 1978.

From the Associated Press:

ST. LOUIS, Mich. — A federal judge has approved a $26.5 million settlement for a central Michigan community whose water supply was contaminated by a chemical company in the 1950s and 1960s.

U.S. District Court Judge Thomas L. Ludington in Bay City signed an order approving the deal on Thursday.

The city of St. Louis, Mich., hopes the settlement with Rosemont, Ill.-based Velsicol Chemical Co. will help pay to replace the water system that serves the area, which is contaminated with a byproduct of the pesticide DDT.

The settlement of the 2007 lawsuit was approved this week by the City Council.

The city says money for the settlement includes $20.5 million from an insurance company for Velsicol and $6 million from a trust related to a former parent company.

The EPA lists the threats and contaminants in the community:

On-site groundwater is contaminated with DDT, chlorobenzene, carbon tetrachloride, trichloroethylene (TCE), and other chlorinated compounds. On site soil samples revealed contamination with PBBs, copper, chromium, zinc, and magnesium. The sediments of the Pine River were also contaminated with similar contaminants through direct discharges from the site; however, surface waters do not show any significant impacts. Potential risks exist for people who eat contaminated fish and wildlife in the vicinity of the site.