November 20, 2024
Business

Holtrachem notifications threaten suit Signed agreement sought

WINTERPORT – The company that owns the former Holtrachem plant in Orrington has threatened to sue Winterport and other communities and businesses along the Penobscot River unless they sign off on all future claims against the firm.

The Chicago-based law firm Sidley Austin LLP, with offices across the globe, notified the communities by letter last week that unless they signed a “Tolling and Standstill Agreement” by Wednesday they would be slapped with a federal lawsuit accusing them of complicity in polluting the river.

Communities with businesses or sewer plants that have a record of discharging mercury into the river were sent the notice. The firm was acting on behalf of Mallinckrodt LLC, the parent company of Holtrachem.

Steve Lang, superintendent of the Winterport Water District, said among the other towns receiving the notice that he knew of were Bangor, Veazie, Orono and Guilford. He said Penobscot Energy Recovery Corp. also received a letter from Sidley Austin.

Under the Tolling and Standstill Agreement, the listed communities and businesses would waive all future claims against the company. A complete list of the towns and businesses sent the letter was not immediately available, but Winterport officials confirmed they received the notice.

Mallinckrodt is in the process of cleaning up the 235-acre Holtrachem site in Orrington and evaluating what will be required to scrub the river of mercury. The firm has spent $35 million to date but thousands of tons of contaminated soil remain on site and untold amounts of mercury-laden sediments are still in the river.

Sewage treatment plants and businesses are required by state law to report the elements or compounds that are discharged into the river. Sidley Austin obtained that information and contacted the communities and businesses on the list. The Winterport Water District, which operates the town’s sewage treatment plant, received the threatening letter last week.

“Because of these releases, Mallinckrodt believes you are legally responsible for addressing the mercury contamination at the Penobscot Sites,” under federal and state law, attorney J. Andrew Schlickman stated in the letter.

The thrust of the agreement is that each party would agree not to sue the other with respect to claims involving the Penobscot sites and that each party would concurrently agree to statute of limitations or other possible restrictions that might apply to such claims.

Mallinckrodt emphasized that it was not seeking any financial contributions toward the cleanup effort and that the agreement would not be deemed an admission of responsibility for contaminating the river. Sidley Austin stressed, however, that “you should understand that if parties refuse to cooperate and preserve the legal status quo, Mallinckrodt may have no other choice but to bring suit on its claims.”

Steve Long, Winterport Water District chairman, said the district had received the letter but declined to reply to Sidley Austin. Long said the district had enough financial constraints on its operating budget that it was not about to hire a lawyer to review the merits of Mallinckrodt’s proposal. Long said the water district discharged very little mercury into the river compared to Holtrachem. At this point, he said, the water district was taking a wait-and-see attitude.

Town Manager Phil Pitula described the Sidley Austin proposal as “ridiculous.”

“I believe they are trying to find a way out of facing the music on their own,” Pitula said Friday. “Our discharge of mercury is negligible. I have no idea why they are attempting to do this. I think it’s ridiculous and I think it’s ridiculous that the water district would have to spend money to respond to what I think is a frivolous lawsuit.”

wgriffin@bangordailynews.net

338-9546


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