[Federal Register Volume 62, Number 73 (Wednesday, April 16, 1997)]
[Notices]
[Pages 18585-18586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-9795]
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DEPARTMENT OF COMMERCE
Economic Development Administration
[Docket No. 970310048-7048-01]
RIN 0610-xx03
Wisconsin Steel Site--Proposed Settlement
AGENCY: Economic Development Administration (EDA), Department of
Commerce (DoC).
ACTION: Notice of proposed settlement
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SUMMARY: The Economic Development Administration has agreed to a
settlement with Navistar International Transportation Corporation
(Navistar) regarding the Wisconsin Steel Works, located in Chicago,
Illinois (the Site), pursuant to Section 122 (i) of the Comprehensive
Environmental
[[Page 18586]]
Response, Compensation and Liability Act (42 U.S.C. 9601 et seq.)
(CERCLA).
DATES: This notice is effective on April 16, 1997. Submit comments by
May 16, 1997.
FOR FURTHER INFORMATION CONTACT: Send comments to Ken Kukovich,
Director, Liquidation Division, Economic Development Administration,
Room 7840, U.S. Department of Commerce, 14th and Constitution Avenue,
NW., Washington, DC 20230, telephone: (202) 482-4965, fax number (202)
482-2217. Copies of the proposed settlement agreement, Consent Order,
and all attachments, can be requested at the same address and telephone
numbers above. Electronically the information on the proposed
settlement agreement and the Consent Order (without the attachments) is
available via the Internet on EDA's Home Page at http://www.doc.gov/
agencies/eda/index.html (under Regulations and Notices).
SUPPLEMENTARY INFORMATION:
Background
Between 1876 and 1980 various portions of the former Wisconsin
Steel Works, located in Chicago, Illinois (the Site) functioned as a
fully-integrated steel mill. EDA guaranteed a loan of $100 million
under its Special Steel Loan Guaranty Program in 1979. After the
Wisconsin Steel Company filed for protection under the bankruptcy laws
in 1980, EDA honored its guaranty. EDA and the International Harvester
Corporation, the predecessor to Navistar, a former owner of the Site
and also a guarantor of the loan, thereafter foreclosed upon the
mortgages securing the loan. Title to the Site is currently held by
American National Bank as trustee for the Wisconsin Steel Land Trust an
Illinois land trust. EDA is the 90 percent beneficiary of the Trust and
Navistar is the 10 percent beneficiary.
No steel-making operations have been conducted on the Site since
1980. In 1984, EDA, as directing beneficiary, directed the demolition
of the majority of above-ground structures. The demolition was
conducted by Cuyahoga Wrecking Company and, after Cuyahoga filed for
protection under the bankruptcy laws, demolition was completed by the
National Wrecking Company.
EDA undertook a preliminary assessment and a site investigation of
the Site. EDA also had on-going discussions with the Illinois
Environmental Protecting Agency (IEPA), and the U.S. Environmental
Protection Agency (USEPA), on how best to address the environmental
conditions found at the Site. In November 1990, IEPA formally notified
EDA that enforcement by the state would be suspended and the matter
deferred to USEPA for cleanup under the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. 9601 et seq.)
(``CERCLA'').
In April 1991, EDA directed the U.S. Army Corps of Engineers (the
Corps) to investigate and remediate the Site on EDA's behalf. The Corps
conducted two Rapid Response removals at the Site to secure it and make
it safe for investigation, the first in 1992 and the second in 1993.
The Corps completed the Phase I Remedial Investigation in the Spring of
1994.
Proposed Settlement
EDA has agreed to a settlement with Navistar relating to the Site.
EDA is publishing this Notice of Proposed Settlement pursuant to
Section 122(i) of CERCLA. EDA may withdraw from or modify the proposed
settlement should public comments disclose facts or considerations
which indicate the proposed settlement is inappropriate, improper, or
inadequate.
In brief, the proposed settlement provides that EDA will transfer
its 90 percent beneficial ownership under an Illinois land trust in the
Site to Navistar at a closing (the Closing) which will occur after the
following three events have occurred:
(1) An Illinois state court judge shall have approved an
Administrative Order by Consent between Navistar and the State of
Illinois.
(2) EDA shall have obtained written approval of this Agreement from
the U. S. Department of Justice.
(3) EDA shall have informed Navistar, in writing, of EDA's decision
to finalize this Agreement after EDA's consideration of all comments
received in response to publication of this Agreement in the Federal
Register.
The proposed settlement further provides that Navistar shall pay
$10,950,000 to EDA at the closing. Of this sum, $5,000,000 is
attributed to EDA's environmental claims against Navistar, under
various state and Federal environmental statutes and the common law.
The remaining $5,950,000 is attributed to EDA's non-environmental
claims against Navistar, including claims arising under a guaranty
between EDA and Navistar, and real estate taxes paid by EDA. In
addition, EDA shall be entitled to the first $1,244,000 of net proceeds
received from the sale of the real estate of the Site after remediation
is completed, and shall share in the net proceeds of any further sales
on a 50-50 basis with Navistar.
Navistar covenants not to sue the United States, including EDA, for
any of its claims in connection with the Site, as defined therein. The
United States, including EDA, covenants not to sue Navistar for its
environmental claims and non-environmental claims as defined therein.
Navistar also indemnifies the United States, including EDA, from any
and all claims asserted by non-parties to the settlement relating to
the environmental conditions of the Site.
As a further condition of the settlement, Navistar and the State of
Illinois have negotiated a Consent Order under the Illinois pre-notice
site cleanup program, which has been entered by the circuit court for
Cook County, Illinois, on December 30, 1996, in the matter: State of
Illinois v. Navistar International Transportation Corporation, Inc.,
Case No. 96CH0014146 (Circuit Court, Cook County, Illinois). Such
Consent Order provides, inter alia, that:
(1) Navistar shall conduct all phases of environmental remediation
at the Site, including completion of the Remedial Investigation,
Feasibility Study, Remedial Design, Remedial Action, and Operation and
Maintenance;
(2) Navistar agrees to submit all scopes of work and work plans for
the work outlined above, as well as Navistar's proposed selection of a
remedial remedy, to the Illinois Environmental Protection Agency for
review and approval;
(3) Navistar waives its right to withdraw from the program; and
(4) The Consent Order is enforceable by IEPA.
Dated: April 10, 1997.
Phillip A. Singerman,
Assistant Secretary for Economic Development.
[FR Doc. 97-9795 Filed 4-15-97; 8:45 am]
BILLING CODE 3510-24-P
