W.R. Grace indicted in asbestos suit
February 7, 2005
W.R. Grace & Company, and seven of its current or former executives and department heads, were indicted Monday afternoon, February 7th, in federal court in Missoula. Prosecutors claim the high-ranking company employees knew their mine near Libby was releasing cancer-causing asbestos into the air, and they tried to hide the danger to workers and the people who lived in Libby. More than 1,200 people became ill and some died, according to the indictment.
The mine near Libby operated for almost 30 years extracting vermiculite ore that was used in a number of household products, most notably a common home attic insulation under the brand name Zonolite®. According to the company, Zonolite® Attic Insulation was primarily used in older homes to retrofit or add to existing insulation and was seldom used in new home construction. The ore contained naturally-occurring tremolite asbestos, which can cause cancer. According to the Environmental Protection Agency (EPA), not everyone who was exposed to the contaminated vermiculite ore has, or will, develop cancer.
A federal grand jury said that top Grace executives and management kept secret numerous studies the cancer-causing asbestos posed to employees, customers and Libby residents. The asbestos-contaminated dust was inhaled by workers during mining and moving ore, brought into town on worker’s clothes and in their vehicles, and product was used in resident’s homes and property in various locations around Libby. The vermiculite ore was shipped to expansion plants throughout the country and processed into insulation and fireproofing material, exposing many more workers to the product.
Libby was declared an Superfund site in October, 2002. Millions of dollars have been spent on cleanup so far, which is still ongoing. The asbestos health issues and Superfund designation have had a major impact on Libby residents and on the economy of the entire area.
The indictment also accused Grace and Alan Stringer, former manager of the now-closed mine, of trying to obstruct efforts by the EPA to investigate the extent of the asbestos contamination beginning in 1999, when a study by the Seattle Post-Intelligencer linked asbestos from the mine to nearly 200 deaths and hundreds of illnesses. The indictment alleges that Grace knew of lung health problems among mine employees as early as 1976.
W.R. Grace is based in Columbia, Maryland. Grace filed for bankruptcy protection in April, 2001, after being overwhelmed with asbestos-related injury lawsuits. Grace has appealed a federal judge's ruling that it must repay the EPA the entire amount for cleanup. That dispute is ongoing. The company could face a fine of up to $280 million, twice the amount of after-tax profits the government alleges W.R. Grace realized from the Libby mine, according to the Justice Department.
W.R. Grace has stated they will fully cooperate with government agencies. On the Libby information page of their website they state, "Grace has pledged full cooperation with government agencies in their efforts to determine if there is an ongoing risk to Libby residents from our former operations, which were closed 10 years ago. We have no evidence that there is, but we, like the people in Libby, want to know the facts."
Grace has provided funding for community health screenings and medical coverage to anyone in and around Libby who is diagnosed with an asbestos-related illness. They have pledged to donate $250,000 a year for as long as necessary to St. John's Lutheran Hospital to provide independent health screening to anyone in Libby who wants it. They presented its initial donation of $250,000 to St. John's Lutheran Hospital in February, 2000. Grace also pledged to provide medical coverage to anyone in Libby who, after receiving an independent screening, is diagnosed with an asbestos-related disease.
Vermiculite Mountain was discovered in Libby, Montana in 1913. Commercial mining operations began in 1923. Grace operated a vermiculite mine and processing mill in Libby from 1963 until 1990, when the mine closed. Grace employed up to 200 people annually at its Libby mine and mill. At its peak, vermiculite production reached more than 200,000 tons annually.
Grace has reopened an office in Libby to assist the state and the EPA in their ongoing investigation, and to have a local office where former employees, and anyone else with a question about their operations, can talk directly to company representatives. The Grace Libby office is located at 317 Mineral Avenue, phone 406-293-3964. The EPA also has an information office in Libby, located at 502 Mineral Avenue. The EPA toll-free information number is 1-866-457-2690.
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