St. Louis, MO, Mar. 2--Monsanto Co. said Monday that it will do what is necessary to maintain an environmental cleanup in Sauget, and avoid government sanctions, according to the St. Louis Post-Dispatch.
The company, based in Creve Coeur, is picking up work dropped by bankrupt chemical maker Solutia Inc., to which it was related. Monsanto faced a deadline Monday, set by the Justice Department, to either outline a cleanup plan or contend with penalties such as fines or legal action.
"We proposed a constructive interim plan that would maintain the work schedule that's currently being pursued for the Sauget cleanup," said Monsanto spokeswoman Lori Fisher. "And we look forward to reaching an agreeable solution, so that work continues."
The work involves cleaning up dioxins, heavy metals, industrial chemicals and polychlorinated biphenyls, or PCBs, dumped from the 1930s through 1979 by companies including the old Monsanto Co.
The toxic mess contaminates Dead Creek, soil and sediment, and threatens the Mississippi River, according to the U.S. Environmental Protection Agency. It estimates that approximately 143,000 people live within a four-mile radius of the site.
Solutia, based in Town and Country, had been the chemical business of the old Monsanto. When it spun out as an independent company in 1997, it inherited responsibility for numerous environmental cleanups and lawsuits that have cost it between $25 million and $40 million a year -- an expense that it says contributed to a Dec. 17 filing for Chapter 11 bankruptcy protection. Solutia estimates the total environmental liability at $1 billion.
In 2000, Monsanto merged with Pharmacia & Upjohn Inc. to form Pharmacia Corp. A year later, the agrochemical and biotech seeds division spun out to form the new Monsanto -- and it agreed to take on any legacy liabilities, including environmental matters, that Solutia failed to or became unable to pay.
Last year, Pharmacia was acquired by Pfizer Inc.
Solutia, in its reorganization, is seeking Bankruptcy Court permission to shed the legacy liabilities. It has said that, pending a decision, it will pay only $4 million more toward construction of an in-ground slurry wall meant to prevent Sauget-area contamination from reaching the Mississippi River. It says it will not fund a study to determine the extent of sediment contamination, or the cleanup that will follow.
So the EPA turned to Pfizer and Monsanto to foot the bill. The three companies wrangled over responsibility as the projects threatened to stall, prompting the Justice Department -- which enforces EPA orders -- to impose the Monday deadline.
Monsanto said it will take responsibility on behalf of Pfizer's Pharmacia division. Fisher would not reveal how much the company is spending, or detail its action plan.
Justice Department spokesman Blain Rethmeier said his agency has received materials submitted by Monsanto "and we're hopeful for a successful resolution."
