The Associated Press has reported that Monday (April 7, 2008) W.R. Grace & Co. “announced it has reached an agreement to resolve current and future asbestos claims against the company, which would allow it to emerge from bankruptcy without further obligations for asbestos injury.” The settlement is estimated at $3 billion in cash and equity, the AP reports.

W.R. Grace operated the vermiculite mine that is most notably associated with causing asbestos disease, including mesothelioma, in the town of Libby, Montana, affecting generations of residents in that area.

The AP story reports millions of tons of asbestos-contaminated vermiculite ore were shipped from the mine near Libby between 1923 and the early 1990s, reaching more than 250 processing plants across the U.S., where it was used in manufacturing insulation, fireproofing, gardening and other products.

According to the AP report, “Monday’s agreement calls for the company to pay $250 million in cash into a trust fund for asbestos victims, followed by deferred payments of $110 million per year for five years beginning in 2019 and $100 million per year for 10 years beginning in 2024.”

Companies formerly affiliated with Grace, including Sealed Air Corp. and Fresenius Medical Corp., also will contribute to the fund.

When Grace filed for bankruptcy in April 2001, it had been named in 110,000 asbestos personal injury claims. It is not known how many more claims may be filed after the establishment of the trust.

Attorneys representing Libby said settlement amounts for plaintiffs there have yet to be determined, but they expect that each case will depend on the severity of injury resulting from asbestos exposure.

Judge Judith Fitzgerald, who presided over the settlement hearing, must still approve the agreement.

This announcement follows on the heels of an announcement in March that Grace would reimburse the Environmental Protection Agency $250 million for the investigation and asbestos cleanup in Libby.

Read the complete story here, in the Flathead Beacon, which serves Western Montana and the Flathead Valley.

Yesterday officials with the U.S. Justice Department and the U.S. Environmental Protection Agency announced an agreement with W.R. Grace & Co. in which the company agrees to pay $250 million for government cleanup costs in the town of Libby, Montana.

W.R. Grace operated a vermiculite mine and processing plant in and near Libby from 1963 to 1990. The vermiculite was contaminated with high levels of asbestos.

According to a story by Tristan Scott in the Missoulian, the agreement settles the 2001 claim brought by the federal government under the Superfund law to recover past and future costs related to asbestos removal from homes, businesses, schools and playgrounds in Libby. More than 200 Libby residents have died from asbestos-related diseases.

It is estimated that the EPA has spent about $168 million removing asbestos-contaminated soils and other materials near Libby, according to the Missoulian story.

Reporter Scott said the settlement requires W.R. Grace to pay the $250 million within 30 days of approval by a federal bankruptcy court.

The money also will be used to resolve a 2003 judgment against Grace in which a judge ordered the company to pay the EPA $54.5 million to cover costs of asbestos cleanup in Libby, but which the company could not pay due to bankruptcy status.

This settlement will not have a bearing on pending criminal charges against W.R. Grace, whose senior corporate officials allegedly conspired to hide the dangers of asbestos and obstructed justice during the EPA’s investigation and cleanup. The criminal trial is expected to open in Missioula, Montana, in April or June, Scott reports.

For more information, read the complete story online.

To learn more about Libby and what happened there, visit this PBS web site, which has a wealth of information about the town.

High Plains Films, a documentary production company, produced an excellent film about the town, which you can view or purchase by visiting their web site.

This story is so sad. A whole town was basically destroyed by asbestos. People brought asbestos home from the factory and put it in their gardens. It was used to pave a running track at the school. It was everywhere. Still is.

The EPA estimates they’ll be cleaning in and around Libby for at least another 5 years, and even then they doubt they’ll be able to remove all the asbestos.