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Plaintiffs in Diaz Chemical release get cash settlement

“It’s not adequate, but that is what happens when companies go bankrupt,” says attorney Alan Knauf regarding the recent cash settlement for more than 100 people who sued Diaz Chemical regarding the January 2002 accidental release that sent 75 gallons of a chemical mixture into the air and over homes in the Village of Holley.

Knauf served as co-counsel for residents’ suits.

He says he is grateful that his clients got anything from Diaz and a sister operation, Diaz Intermediates – both of which have gone bankrupt.

The plaintiffs will split just over $250,000. Reports say payments range from $600 to $2500 depending on the claims filed by each property owner.

The past ten years have been a struggle for many affected by the spill and because Diaz manufactured specialty chemicals for the pharmaceutical and other industries, “we don’t know the long-term (health) impact,” Knauf says “no studies have been done.”

Initially some residents became sick with symptoms like nausea, difficulty breathing and nose bleeds, he says.
“It’s been a major ordeal for those people,” Knauf says.

He explains that he is happy, however, that they were able to address the ongoing environmental issues from the spill and get some compensation for homeowners from insurance.

“When the state was not reacting in an adequate manner, we got the Environmental Protection Agency (EPA) to come in and take action,” Knauf explains.

The EPA took decisive action, he says, cleaning up large volumes of chemicals in drums and tanks left behind when Diaz abandoned the plant in 2003. The EPA also purchased the homes of eight neighbors of the plant who wanted to re-locate. Those homes continue to stand empty, mainly along Jackson Street in the village where Diaz was located.

In September of 2012, the EPA finalized a plan to clean up contaminated soil and groundwater at the site. According to the EPA, the plan uses a technology to treat six areas of soil and groundwater that continue to cause contamination of groundwater in a broader area. Outside of the source areas, the EPA relies on natural processes that allow the contaminants to disperse, dilute and degrade to groundwater cleanup levels. The plan also calls for the sale or transfer of the eight properties purchased by the EPA.

10/27/13

 

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