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New Jersey Says W.R. Grace Lied About Asbestos Contamination

The state of New Jersey is alleging that chemical giant W.R. Grace & Co. and two former executives falsely claimed that asbestos contamination at the company's Hamilton Township plant had been cleaned up in conformance with state regulations after the facility was closed in 1995.

The lawsuit was filed by state Attorney General Peter Harvey on behalf of the New Jersey Department of Environmental Protection in Mercer County Superior Court.

The complaint names Maryland-based W.R. Grace and employees Jay H. Burrill, who oversaw environmental compliance at the Hamilton plant, and Robert J. Bettachi, who was responsible for the overall operation of the facility.

The lawsuit is asking for civil damages under the New Jersey Spill Compensation and Control Act and the New Jersey Industrial Site Recovery Act. The complaint seeks $50,000 against each defendant under the Spill Act and an additional $50,000 for each day the defendants did not correct the false information since June 5, 1995.

"We have zero tolerance for companies like Grace that, in this case, clearly failed to note asbestos contamination when reporting about environmental conditions at its Hamilton site," New Jersey DEP commissioner Bradley M. Campbell said in a statement.

According to state authorities, the defendants knew that dust and other waste containing asbestos fibers were generated by the Hamilton Township facility and had contaminated the plant and soil at the site.

After W.R. Grace closed the plant in 1995, the defendants falsely certified in two documents filed with the state that any hazardous waste had been cleaned up in accordance with the New Jersey's environmental regulations, the complaint says.

According to a statement by Harvey, more than 15,000 tons of contaminated soil were left at the facility after Grace shuttered the plant in 1995. In 2001 the Environmental Protection Agency took soil samples at the site that showed some asbestos contamination as high as 40 percent.

Two companies that have successor liability for the site — Amtrak and American Premium Underwriter Inc. — are in the process of excavating and disposing of the asbestos-contaminated soil at the facility under the direction of the EPA, according to the complaint.

The suit says that for several decades the facility manufactured vermiculite-based products such as thermal insulation for masonry products and fireproofing materials.

The raw vermiculite processed at the Hamilton facility came from W.R. Grace's mine in Libby, Mont.

Grace is also under federal indictment for its activities related to the operation of the Libby mine. It is charged with systematically hiding the dangers from the public and stonewalling the U.S. government when it began investigating the alleged ill effects on miners and town residents.

Grace closed the mine in 1990 and sold its properties, allegedly without disclosing they were contaminated with asbestos.