Asarco agrees to grant $1.45 million general unsecured claim in Park City mining site settlement

By Caroline Salls

Pittsburgh, Sept. 24 - Asarco LLC requested court approval of an environmental site clean-up cost settlement under which the company has agreed to grant a $1.45 million general unsecured claim to the Atlantic Richfield Co., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, Asarco entered into a joint venture agreement with a predecessor-in-interest to Atlantic Richfield on April 15, 1970 for mining and mineral processing in the Park City Mining District, near Park City, Utah.

Under that agreement, Asarco was responsible for 40% of the debt of the joint venture and Atlantic Richfield was responsible for 60%.

However, the parties disputed the estimated amount of funds needed to remediate a tailings impoundment, the costs for employing a web buttress, the alleged impact on surrounding vegetation, the potential that the federal or state government might seek restoration costs for natural resource damages and estimates provided for the costs of some components of remedial work.

In addition to the claim being granted to Atlantic Richfield, the companies have agreed not to sue or file any other claims against each other in connection with the Park City site.

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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