AG Gansler Announces Settlement Agreement with New Sparrows Point Owner

AG Gansler Announces Settlement Agreement with New Sparrows Point Owner to Clean Up Years of Industrial Pollution at Steelmaking Plant
$48 million pledged to guarantee cleanup of 3,100-acre site eyed for redevelopment 

Baltimore, MD - Attorney General Douglas F. Gansler announced today a settlement agreement with the new owner of the former Sparrows Point steelmaking facility outlining the exhaustive cleanup of decades of industrial pollution and contamination at the vast property. The agreement represents a major step forward in efforts to redevelop the 3,100-acre Sparrows Point property into a hub for port-related, energy, advanced manufacturing and distribution uses.

"This agreement to clean up Sparrows Point - at no cost to taxpayers - ensures the restoration of an environmental eyesore and a public health hazard that has long been one of the most toxic sites in Maryland," said Attorney General Gansler. "The people who live and work nearby can finally look toward a healthier community. It's exciting to envision a revitalized Sparrows Point as an economic engine and job creator for our state."

Under the terms of the Administrative Consent Order, Sparrows Point Terminal, LLC, (SPT) will assume responsibility for ongoing environmental work and will develop and execute plans to complete cleanup of the property. The new owner agreed to provide the Maryland Department of the Environment (MDE) with $48 million in financial assurances (a $43 million trust fund and a $5 million letter of credit) to pay for cleanup.

Additionally, SPT, through an independent engineering firm, will review the adequacy of the financial commitment every six months, and if cleanup costs are 10 percent or more over budget, the company will put more money into the trust fund. The Consent Order also provides for SPT to incur penalties of up to $5,000 a day if it fails to meet deadlines outlined in the agreement and requires the company to pay MDE's oversight and response costs up to $100,000 per year.

SPT has also agreed to provide the U.S. Environmental Protection Agency with $3 million to perform additional offshore investigation and, if necessary, offshore remediation.

The Consent Order became effective today upon sale of the property to Sparrows Point Terminal LLC. The Administrative Consent Order and additional related documents are available on MDE's website.

Attorney General Gansler thanked Maryland Department of the Environment Secretary Robert M. Summers and his team, as well as Assistant Attorneys General Sari Levin and Matthew Zimmerman, for their work on the settlement.