The US federal government reached an agreement Thursday to expedite an estimated $28 million cleanup of an Asarco copper smelter site in Tacoma and Ruston, Washington. The agreement will allow Asarco to sell the Asarco Smelter property, which is part of the Commencement Bay Nearshore/Tideflats Superfund Site, to Lacey, Washington-based developer Point Ruston LLC. This ensures that the cleanup work required on the approximately 97 acquired acres of contaminated land will be completed.

Under this agreement, Point Ruston will assume all cleanup obligations on the property owned by Asarco and assume significant cleanup obligations on adjacent land which was also contaminated by Asarco's past operations, according to a US Department of Justice statement.

According to Granta Y. Nakayama, the Environmental Protection Agency's Assistant Administrator for Enforcement and Compliance Assurance, quoted in the DOJ statement "This agreement is a giant step in transforming this site from a highly contaminated former smelting facility to a residential development. The clean-up and redevelopment of this land is a win all around. It enhances the environment, improves the local community, and promotes economic development."

The land is the former site of a copper smelting facility operated by Asarco from 1912 to 1985. Slag from the smelting process was used as fill by Asarco throughout the facility and was also poured into Commencement Bay to extend the shoreline of the smelter site by about 500 feet. Slag and other wastes from past smelter operations contaminate the property and are a continuing source of contamination of groundwater below the site and to marine sediments offshore of the smelter property. In 1997, a consent decree between the EPA and Asarco mandated cleanup of the uplands portions of the smelter property and the adjacent properties. In 2000, EPA issued an administrative order requiring Asarco to perform the sediment and groundwater work. While Asarco has performed a substantial amount of the work required, much of the cleanup has yet to be implemented.

On August 9, 2005, Asarco filed for bankruptcy protection under chapter 11 of the bankruptcy code in the US Court for the Southern District of Texas. On January 30, 2006, the Bankruptcy Court approved the sale of the property to MC Construction and the sale agreement was subsequently assigned to Point Ruston. As part of pre-conditions of the sale set forth by the bankruptcy court, Point Ruston was required to reach an agreement with the Environmental Protection Agency regarding the cleanup of the property it is attempting to purchase.

The United States has also agreed to release a Comprehensive Environmental Response, Compensation, and Liability Act lien against the property in exchange for $1.5 million at closing and contingent payments over time that may reach $4 million so that the property can be sold free and clear of any encumbrances. These funds will be placed into a special account to be used to clean up contaminated sediments in areas not covered by this agreement. As part of the settlement, Point Ruston will also pay EPA's oversight costs. The Department of Justice lodged the amendment to the existing consent decree Thursday in the U.S. District Court for the Western District of Washington. The consent decree will be subject to a 30-day public comment period and subsequent judicial approval.