No! Federal Judge Concerned That Freedom Industries Won't Pay For Elk River Cleanup
A federal bankruptcy judge is becoming increasing concerned that Freedom Industries may abandon its former Elk River chemical storage facility without completing a proper environmental cleanup of the site of the January chemical spill that contaminated the drinking water supply for hundreds of thousands of residents across the region.
U.S. Bankruptcy Judge Ronald Pearson says that the Freedom bankruptcy proceeding has not progressed adequately, and that too much of the company’s limited cash is being earmarked for attorneys, perhaps leaving not nearly enough to complete remediation required by existing enforcement orders from the state Department of Environmental Protection.
In a seven-page order filed Friday evening, Pearson said recent bankruptcy case filings by Freedom’s lawyers cause him “to fear [Freedom] is not sufficiently committed to compliance with the demolition and cleanup orders of the” DEP or “other agencies of the state and federal government.”
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“The court believes this environmental responsibility has the highest administrative priority for funds,” the judge wrote. “Nothing in the proposed plan and disclosure statement give the court comfort that this is understood. This expressed intention of the debtor to potentially abandon the Etowah site should DEP not be satisfied with whatever remediation could be done for a cost of $850,000 is no comfort. It causes the court to believe that serious questions exist as to the extent to which the debtor intends to comply with existing demolition and cleanup orders and pay necessary environmental administrative claims to do so.” The judge scheduled a hearing for Sept. 23 to allow Freedom “to address the concerns” expressed in Friday’s order and to “outline a plan to fund all remaining demolition and reclamation required by state and federal regulatory agencies.” At the hearing, the judge said he would “entertain discussions” about whether to convert the Freedom case to a Chapter 7 bankruptcy, a move that would give a trustee more control over the matter.
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http://www.wvgazette.com/article/20140908/GZ01/140909376