Bankruptcy court allows Exide to back away from polluted properties – Reading Eagle

A Delaware bankruptcy court has approved a plan in which money to clean up Exides lead-polluted Berks County properties would be put in a trust fund.

The Environmental Response Trust would designate $10 million for "ongoing containment and safety efforts" at 16 of Exides former sites in Pennsylvania and nine other states. The Environmental Protection Agency, which agreed to the trust fund, said in an Oct. 14 filing it would not be enough for full cleanup.

What that means for the Berks County properties, including its facility at 3000 Montrose Ave. in Muhlenberg Township, is not clear.

The bankruptcy will impact Exides environmental liabilities at the Reading facility, the EPAsaid on its hazardous waste cleanup site. The agency said it is working with the Department of Justice and the Pennsylvania Department of Environmental Protection to negotiate with Exide in the bankruptcy proceedings. Once the settlement of the bankruptcy is finalized, the EPA said, it would schedule a virtual public meeting to present the outcome of the proceedings and to discuss the impact to the environmental cleanups.

"While EPA remains in discussions with PADEP and the bankruptcy trustee over how to most efficiently use available funds to address the environmental cleanup at the Reading facility, EPA currently estimates those funds as being at least $2.5 million," said David Sternberg, EPA press officer in an email statement.

That amount is short of the most recent estimate $6.23 million to clean up and monitor the site. It is not clear where the money to finish the job will come from.

Jamar Thrasher, a DEP spokesman, said in an email statement that the department has actively participated in the Exide bankruptcy case, trying to ensure the most advantageous outcome for Pennsylvania.

"While the settlement proceeds will not be enough to completely address all environmental concerns, the court-approved settlement avoids the abandonment of the Reading site and ensures that there is no immediate and identifiable harm to the publics health and safety," Thrasher said.

"Please note that the plan of reorganization has been confirmed over Californias objection. DEP will work with EPA and the Environmental Response Trust that now owns the Reading site to address outstanding environmental concerns in an orderly fashion."

California state and local officials objected to the settlement, which would have given far less than needed to clean up Exide's Vernon battery plant and leaves the state and taxpayers on the hook to pay for continued environmental cleanup.

Exide's Muhlenberg facility and its environmental impact on the soil and water in the surrounding area has beenunder scrutiny of the EPA for many years.

The plant was idled in 2013. An adjacent facility is still operating a plastics recycling operation with a small number of employees.

Berks County Public Relations Officer Stephanie Weaver said the county is still reviewing the judges bankruptcy ruling with its counsel and consultants, and the effect the ruling may have on the local Exide property.

"The County stands by the position outlined in our recent letter to EPA that the Laureldale site needs to be cleaned up and properly closed to protect public health and safety," Weaver said in an email statement.

In September, Berks County commissionershad challenged a proposed cleanupand asked the EPA for a public hearing and for a new evaluation. The county said the EPA should conduct a new risk assessment in light of recent science and lack of monitoring of children's blood-lead levels in the area.

"As an overarching issue, the commissioners have grave concerns that EPA is proceeding to implement and finalize a cleanup in 2020 that was designed and based on 1990 science," consultant Fred Osman wrote to the EPA on behalf of the county.

Exide's American assetswere sold in July.A judge approved the sale in August. Affiliates of Atlas Holdings LLC paid $179 million in a transaction for seven battery plants and two lead recycling and recovery facilities. Not included in the sale were 16 so-called "nonperforming properties," that were abandoned and/or environmental liabilities.

Bankruptcy court documents list several Berks properties that will be abandoned by Exide and placed in the trust. In addition to the Muhlenberg Township plant, there are properties surrounding the Bernhart Reservoir: several residential properties on Spring Valley Road and a vacant plot at Isabelle Court and Josephine Drive. Also mentioned is a site near Hamburg.

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Bankruptcy court allows Exide to back away from polluted properties - Reading Eagle