Diaz Chemical announced last week that it has ceased production at its Holley facility and they expect to spend the next two months cleaning up the Jackson Street site. The clean up includes cleaning lines and equipment and selling off chemicals that remain on-site.

Mayor Dan Schiavone said he has mixed feelings about the announced closing of the Diaz plant in Holley. "We will be losing what was once a major employer in Holley and we will be losing a major electric consumer," he said, adding that, "The plant's closing will put a stop to pollution in the community and will hopefully alleviate some health and safety concerns the residents have."

The announcement of the proposed closing came on the heels of an order by the Environmental Protection Agency for the plant to install additional safety equipment - equipment that Diaz Vice President Cliff Jenney said the company couldn't afford. Without the safety equipment installation, the EPA said Diaz couldn't continue producing its chemicals.

In addition to clean-up fees, Diaz is facing a $60 million civil suit from Holley residents and more than $17,000 in fines from the village for excess contamination of the ground water supplies - fines on the original $17,000 are being tallied at $1,000 per day of non compliance.

Schiavone said he assumes Diaz officials will be held accountable for the clean up of the site. "We want to concentrate on the clean-up aspects now."

Thanking Department of Environmental Conservation and Environmental Protection Agency officials for the help they have given in the past, Schiavone said he hopes that Diaz won't be allowed to duck the responsibility for the clean-up. "I believe they (Diaz) should be the sole entity responsible for cleaning up the mess they created," he said.

If Diaz doesn't take full responsibility Schiavone said he was confident the DEC and EPA will help with clean up. "If necessary, we will look to the federal government or the Superfund program for help with cleaning up the contamination."

Many of the problems that Diaz is now facing stemmed from an accidental chemical release that occurred on January 5, 2002. As a result of the spill several families were driven from their homes. Relocation costs and lawyers' fees contributed to the company's lack of funds. Diaz opened in Holley in 1974.