Bankruptcy Court Approves $43 Million Coal Cleanup Deal

On Tuesday, September 5, 2017, a bankruptcy court in Missouri approved a $43 million settlement between the reorganized Peabody Energy Corp., which is a coal producer, and the federal government. The settlement related to CERCLA liability incurred by one of Peabody’s affiliate companies, Gold Fields Mining LLC. Peabody acquired responsibility for Gold Fields’ pollution liability when it gained control of the company in the 1990s.  The federal government had filed proofs of claim in Peabody’s Chapter 11 bankruptcy proceeding on
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The EPA’s Action Plan to Restore a Cornerstone of its Mission

In May, E. Scott Pruitt, EPA Administrator, issued a memo about prioritizing the Superfund Program and establishing a commission to expedite the identification and revitalization of superfund sites. CERCLA created the Superfund Program in 1980, but efforts to revitalize superfund sites have lately been delayed by red tape, funding issues, bankruptcies, and court proceedings. In his memo directed to the deputy administrator, the inspector general, assistant administrators, and other high level personnel, Pruitt vowed that “the EPA’s Superfund land and
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CERCLA Update – Watch Out for Inadequacies in Allegations; Pleading Requirements to Satisfy a “Disposal”

Late last year, in our Law360 article “Definition Of ‘Disposal’ Limits CERCLA’s Applicability,” we analyzed an Ohio District Court’s pleading requirements to state a claim for liability under CERCLA. The plaintiffs’ initial complaint in that case had been dismissed because it failed to sufficiently allege “active human conduct” causing hazardous substances to be “discharged, deposited, injected, dumped, spilled, leaked or placed into or on any land or water at the Site so that it could enter the environment.” We left
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