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EPA OK'S PACT TO TRANSFER SOUTHERN CALIF. SUPERFUND SITE OWNERSHIP

Release Date: 9/27/2001
Contact Information: Lisa Fasano, Press Office, 415/744-1587

     $74 million package from Aerojet ensures continued site cleanup progress

     SAN FRANCISCO   The U.S. Environmental Protection Agency signed an agreement yesterday that allows for the transfer of part of the San Gabriel Valley Superfund Site from the current owner, Aerojet General Corporation to Northrop Grumman Systems Corporation in return for $74 million in payments and guarantees to cover future cleanup costs.  The agreement releases Northrop from liability for the cleanup and allows them to proceed with their plans for the 70 acre electronics plant.

     The document, known as a "prospective purchaser agreement," requires Aerojet and its parent company, GenCorp, to provide $74 million in cash payments and financial guarantees to ensure that Aerojet lives up to its obligations to provide funds for the continued cleanup of contaminated groundwater associated with the Baldwin Park portion of the San Gabriel Valley Superfund Site.  The agreement does not diminish Aerojet's responsibility to pay its share of the cleanup, and places Aerojet in a stronger financial position to pay for future site cleanup.

     "This agreement helps provide much-needed funding and incentives to move forward on the important task of designing and building a joint cleanup and water supply project," said Keith Takata, director of the EPA's Superfund program in San Francisco.  "Now its time for all the parties involved to work together to protect the drinking water supply for all San Gabriel Valley residents."

     Today's announcement follows a 30-day public comment period on the proposal that generated 100 comments from other parties held responsible for the site cleanup, local water agencies and local businesses.  Based on public comment, the original cash payments and financial guarantees required of Aerojet and GenCorp was raised from $34 million to $74 million.

     In the last eight months, Aerojet and other parties responsible for contamination at the site have made commitments to fund more than $20 million in design and construction work for a series of groundwater treatment plants.  The cleanup facilities will cost roughly $90 million to build and $10 million per year to operate.  The next step is to finalize the project agreement between the responsible parties and the water companies that will address both construction of the treatments plants and long term operations and maintenance.

     Since listing the site as a federal Superfund site in 1984, the EPA, the state and local water agencies have worked to prevent the migration of contaminated groundwater to other areas that are used for drinking water.  Soil and groundwater at the Baldwin Park section of the San Gabriel Superfund Site is contaminated with high levels of volatile organic compounds, perchlorate and numerous other contaminants including PCE and TCE (degreasers and solvents).  

     For a copy of the agreement, go to: https://www.epa.gov/region09/waste/brown/ppa.html