RG Steel's deal with EPA OK'd, resolves agency's civil penalty claims

By Jim Witters

Wilmington, Del., Aug. 2 - RG Steel, LLC received approval for a $19.89 million settlement resolving the U.S. Environmental Protection Agency's civil penalty claims against the company.

The approval came during an Aug. 2 hearing in the U.S. Bankruptcy Court for the District of Delaware.

RG Steel said the EPA filed claims for civil penalties against RG Steel Wheeling, LLC, RG Steel Warren, LLC and RG Steel Sparrows Point, LLC for violations of the Resource Conservation and Recovery Act, the Clean Air Act and the Clean Water Act.

Under the settlement, the EPA receives a $15.75 million general unsecured claim against RG Steel Wheeling, a $4.13 million general unsecured claim against RG Steel Warren and an $8,431 general unsecured claim against RG Steel Sparrows Point.

The agreement was struck in May, but the EPA needed a public comment period before seeking bankruptcy court approval.

RG Steel, a Sparrows Point, Md., flat-rolled steel processor, filed for bankruptcy on May 31, 2012. Its Chapter 11 case number is 12-11661.

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