$151M Settlement Tentatively Approved After Chemical Spill Contaminates WV Drinking Water

A U.S. District judge temporarily approved a $151 million settlement this month that involves two companies sued over a 2014 chemical spill that contaminated drinking water in West Virginia.

It was in January 2014 that a tank at Freedom Industries in Charleston, WV, leaked chemicals into the drinking water supply for 300,000 people, leading to a tap water ban, The Washington Post reported.

Lawyers for local residents and businesses claim that the water company did not properly prepare for or respond to the spill.

Judge John Copenhaver approved the proposed deal after more than two hours of closed-door negotiations on the wording of the class-action agreement, the AP reported in a story appearing on Fox News’ website.

An attorney, Stuart Calwell, who is representing residents and businesses, stated “that under the settlement, West Virginia American Water Co. will pay $126 million and chemical maker Eastman Chemical will pay $25 million.”

Through an application process, the money will be dispersed to any resident or business that resides in the affected area. Calwell added “that he was very pleased by the settlement and that the money involved ‘is a recognition of what folks had to endure.’”

The Washington Post reported that Copenhaver was critical of the proposed deal and said that he was concerned that “it doesn’t make clear that West Virginia American Water Co. won’t seek a rate increase to recoup the costs of settling the lawsuit.”

However, the water company did agree not to seek out a rate increase from state regulators to regain the costs of settling the lawsuit.

Copenhaver was very clear during the settlement, saying “that those costs must be paid by the company's investors and stockholders, not customers who were spill victims”

"If so, this becomes a fool's errand," Copenhaver said.

According to the AP, both companies stated separately that the settlement “isn't an admission of liability.” West Virginia American Water added that the lawsuits brought against it "were without merit."

However the water company that was accused in the lawsuit of not properly handling preparations and response to the spill, said the settlement "allows us and our dedicated employees to serve our customers without the distractions of ongoing lawsuits. Our commitment to the highest standards of customer service will always be a top priority."

For similar stories visit Water Online’s Source Water Contamination Solutions Center.