Posted 9/9/2004 5:20 PM     Updated 9/9/2004 9:39 PM

DuPont settles water pollution case for $300M
DuPont (DD) could pay more than $300 million under a settlement with 60,000 residents of Ohio and West Virginia whose drinking water was contaminated by a chemical used in making Teflon.

DuPont shares rose 14 cents to close at $42.90.

Residents of the towns filed a class-action lawsuit in 2001 over perfluorooctanoic acid (PFOA) releases from DuPont's Washington Works plant near Parkersburg, W.Va., on the Ohio River.

DuPont also faces as much as $300 million in fines from the Environmental Protection Agency over charges that it withheld information about PFOA three times in 20 years. The EPA says PFOA may pose "substantial risk of injury to human health or the environment." The fines, announced in July, are separate and not affected by the settlement.

Health and environmental experts have raised red flags about PFOA, also used in the manufacture of Gore-Tex, in part because of its pervasiveness: 92% of Americans tested have traces in their blood. Studies of animals have shown PFOA can cause developmental problems. Few studies have been done on the human impact.

Pending approval by a West Virginia judge, the settlement requires DuPont to pay $70 million in cash to the affected communities, build water treatment plants and form an expert panel to evaluate whether there are links between PFOA exposure and disease or birth defects.

If the panel determines that PFOA might cause human disease and birth defects, DuPont will also pay as much as $235 million for a medical monitoring program. An additional $22 million will go to lawyers involved in the litigation.

Six area water districts will have the option of installing state-of-the-art water treatment systems to reduce PFOA to the lowest practicable levels, at an estimated cost of $10 million.

For residents whose water comes from private wells, DuPont will make equivalent technology available.

While not admitting liability, DuPont general counsel Stacey Mobley said the company is "pleased to reach an agreement that places our combined priorities where they belong: on the community and not on lengthy and contentious legal proceedings."

Robert Bilott, a lawyer for the residents, said he is pleased the agreement will not only clean up the water, but also preserve "people's rights to pursue any personal injury claims they may have if their exposure to (PFOA) is found to be linked to any disease or birth defects."