Asarco asks for court approval of $13.7 million settlement with U.S. government agencies

By Reshmi Basu

New York, Oct. 1 - Asarco LLC asked for court approval of a $13.7 million settlement agreement with U.S. environmental agencies, which would resolve a dispute over cleanup costs associated with allegations that one of the company's plants was responsible for the contamination of soil in several neighborhoods in Texas, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, the agencies asked for $19.7 million from Asarco for the cost to clean up lead and arsenic in yards of several homes in El Paso, Texas.

Under the agreement subject to court approval, the U.S. Environmental Protection Agency will have a $13.3 million allowed unsecured claim against the company and the Texas Commission on Environmental Quality will have a $419,200 claim.

In exchange, both agencies will release the company from any liabilities.

A hearing has been scheduled for Oct. 19.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

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