Bankrupt Oil Co. Settles Over Cleanup
The federal government settled with the bankrupt Getty Corporation last week for its liabilities in contributing to pollution in the Newtown Creek, U.S. District Attorney for the Southern District of New York Preet Bharara announced last Tuesday, Oct. 21.
The agreement, in which Getty will pay $16 million to the federal government, was made under the federal Superfund law, and the Oil PollutingAct, Bharara said. Due to decades of toxic spillage and heavy industry on the banks of the 3.5-mile creek that serves as part of the Brooklyn/Queens border, the waterway is one of the most polluted in the nation.
It was added to the U.S. Superfund site list in 2010. The federal government, under the auspices of the Environmental Protection Agency (EPA), will lead the cleanup effort and pursue compensation for it from the companies deemed responsible for the contamination.
“For more than a century, irresponsible industrial activities turned Newtown Creek into a tributary of toxic waste,” Bharara stated.
Getty Terminals operated a facility near the creek which “stored, blended and distributed gasoline, fuel oil and gasolineblending additives,” according to Bharara’s office. The Getty site also included both surface and below-ground tanks in which fuel and related chemicals were stored.
According to a proof of claim filed by the federal government, Getty Terminals allegedly discharged contaminants into the creek, including materials “with lead concentrations and other hazardous substances.”
Getty, in filings with U.S. Bankruptcy Court, also admitted that a spill at the facility occurred in October 2005 which resulted in further contamination of the creek.
“Getty’s decades of irresponsibility and indifference to the environment could pose significant environmental risks to Newtown Creek communities and must be addressed,” EPA Regional Administrator Judith Enck said. “EPAadded Newtown Creek to its Superfund National Priorities List of the country’s most hazardous waste sites in September 2010 because its water and sediment contain a range of contaminants including pesticides, heavy metals, polychlorinated biphenyls (PCBs) and volatile organic compounds.”
“Today’s settlement ensures that Getty takes responsibility for its contribution to that sad legacy, and pays a fair share of clean-up costs at the site. This office is committed to holding those who contaminate our nation’s lands and waterways accountable for their actions, and bankruptcy is not a free pass for polluters,” Bharara added.
“The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers,” Enck said. “EPA is dedicated to cleaning up this area and will hold all responsible parties accountable.”
This case is being handled by the office’s Environmental Protection Unit and Tax and Bankruptcy Unit. Assistant United States Attorney Joseph N. Cordaro is in charge of the case.
