DuPont Rejects Mediation on C-8 Charge

Wilmington, DE, August 31--DuPont has decided against a brokered out-of-court resolution in a federal case that accuses the company of failing to report health and environmental threats from the release of a chemical used to make Teflon. DelawareOnline.com reported that Environmental Protection Agency officials said DuPont failed to meet a deadline Thursday for requesting use of a third party for mediation or other alternatives. The EPA in July accused DuPont of failing to properly report the discovery of perfluorooctanoic acid, also called PFOA or C-8, in drinking water near the company's Washington, West Virginia, plant. Regulators also said the company failed to properly report findings that PFOA had crossed the placenta of a pregnant worker, potentially contaminating the blood of her fetus. Maximum penalties in the case could total more than $300 million, although regulators have said they intend to seek far less. "We declined the alternative dispute resolution process," DuPont spokeswoman Catherine L. Andriadis said. "Our response was based on our Aug. 12 announcement and our clear statement at the time - that we fully and promptly reported all appropriate information regarding PFOA to the U.S. EPA." Rich Hood, EPA media relations director, said agency rules require the case to go to an administrative law judge for a review, with a hearing schedule possibly set as early as this week. Hood said it would be an open proceeding. The EPA currently is investigating how C-8 enters the environment, and its possible health risks. The study was undertaken in part because of the chemical's widespread presence at low levels in human blood and by links to cancer, birth defects and other health problems in rats. DuPont uses C-8 to make a variety of consumer products, including Teflon, carpet stain protectors, fast-food packaging, paper products, cleaning compounds and clothing. Other companies also are participating in the EPA's assessment of the compound. The 3M Co., the original manufacturer of C-8, began phasing out the chemical in 2000 after environmental concerns began to surface. In July, the EPA accused DuPont of "multiple failures to report information to EPA about substantial risk of injury to human health or the environment," at its West Virginia plant. Lauren Sucher, a spokeswoman for the Environmental Working Group, a nonprofit organization that petitioned the EPA to act against DuPont, said the enforcement proceedings should be open to the public. The group has urged regulators to impose the maximum fine to offset the company's profits from Teflon and other products that use or release C-8. "Unless it's a punishment that's felt, it won't make a difference," Sucher said. "The message must be sent that it's unacceptable to break the law by polluting an entire community - not just their drinking water, but their own bodies. There must be a consequence." Releases of C-8 contaminated the drinking water supply of thousands of people near DuPont's West Virginia plant, resulting in a class-action lawsuit due for trial next month. DuPont recently reported a $45 million set-aside for PFOA-related legal actions. The chemical continues to escape into the air and water from the West Virginia plant and from DuPont's Chambers Works plant in Deepwater, N.J., although DuPont officials have reported substantial emission reductions.