BASF Wyandotte invites local clergy to briefing on the status of the Riverview Property.

Business Editors

WYANDOTTE, Mich.--(BUSINESS WIRE)--June 7, 2001

-- Recent media report on contamination and dumping gets the story wrong

-- Concerns of local citizens can be alleviated through open communication

BASF officials have invited the Rev. Charles Morris of St. Elizabeth's Church to visit the company's Wyandotte site for a briefing on the status of the Riverview property.

The invitation follows a Detroit News report quoting Morris who criticized BASF for allegedly contaminating the Detroit River and the Michigan Department of Environmental Quality for moving too slowly in enforcing cleanup efforts.

"We are pleased that the Rev. Morris has accepted our invitation to attend a briefing and tour the site in order to see first hand the projects that have been completed and learn about our future plans," said Ed Nuernberg, general manager of BASF Wyandotte.

"BASF takes environmental responsibility very seriously. We want to clear up any misconceptions and correct any wrong information regarding the Riverview property," added Nuernberg. "The actual condition of this property does not even remotely reflect the negative way it has been portrayed by certain groups and some news articles. This property is vacant and has not been used as a dumpsite since 1967. There is no dumping going on."

Use of the Riverview site as a disposal facility long pre-dates BASF Corporation's ownership. Wyandotte Chemicals Company purchased the property from the former Firestone Steel Company in 1951. BASF bought Wyandotte Chemicals in 1969.

Since BASF had no need for this property, it was sold to Federal Marine Terminal for the construction of a terminal facility. During the excavation, Federal Marine found buried industrial wastes, and BASF subsequently repurchased the land. In 1984 BASF signed a Consent Decree with both the State of Michigan and the United States Environmental Protection Agency (EPA) to ensure that contaminants on the property are prevented from entering the Detroit River.

As part of the consent decree, BASF installed a 24-inch thick impervious clay cap on the sections of the property where the contaminants were located. This was done to prevent rain water and snow melt from soaking into the soil, entering the groundwater, and thus causing the groundwater to move toward the river. Essentially, the contaminents were "sandwiched": Natural clay on the bottom, the contaminated soil in the middle, and clay placed on the top. Additionally, BASF monitored and tested the water continuously over the past 16 years, and reported its findings regularly to the State of Michigan.

In the fall of 1998, BASF identified and reported to the State of Michigan that a small area of dead grass had been found adjacent to the clay cap. Testing indicated that the surface water had a high pH, contained salts, and trace concentrations of mercury.

Immediate actions were taken by BASF to capture and remove the surface water from the site and enlarge the amount of property under the cap to prevent contamination of the surface. To date, those efforts have been effective, and monitoring continues.

As a result of BASF's disclosure, the State requested and BASF agreed to develop a plan to prevent any groundwater from migrating into the Detroit River. BASF continues to cooperate fully with the DEQ to develop and implement further remediation measures.

"A quick and temporary fix is in no one's interest and finding a permanent solution required complex analysis," said Nuernberg. "No one is dragging their feet. Further, there is no evidence that contaminants from the groundwater are currently reaching the river. The whole point of this endeavor is to make sure that it will never be able to happen."

On February 1, 2001 BASF presented to the State proposed remedies with the core recommendation to install an impervious seawall that will prevent any possibility of groundwater under the Riverview property from migrating into the Detroit River.

In early May, the MDEQ rejected, in part, BASF's initial plan. BASF and the Michigan DEQ have been working together to bring an agreed-upon remedy to conclusion as soon as possible. A resolution is expected soon.

Since 1998, when BASF first reported the problem to the State authorities, BASF has spent more than $1 million on temporary measures and research to provide technical data needed to create a permanent remedy. BASF expects to pay an additional $6 million or more once the agreed upon method is approved.

"BASF has always acknowledged its responsibility to address and contain contaminants at the Riverview property that came with its purchase of Wyandotte Chemicals. The company has a good track record in handling environmental remediation in Wyandotte," Nuernberg said.

"For example," he continued, "with the cooperation of the MDEQ and the City of Wyandotte, BASF cleaned up the former Wyandotte Chemicals' old South Works Site and turned it into a park and golf course. In the Riverview situation, we have submitted a detailed remediation plan to the state for additional improvements to the property. We are meeting regularly with DEQ officials to discuss ways to best move forward with the implementation. Until the plan is approved, state regulators agree that the property poses no imminent danger to public health and safety."

BASF Corporation is the third largest producer of chemicals and related products in the United States, Canada and Mexico, with sales of $7.9 billion in 2000. Based in Mount Olive, NJ, BASF Corporation is the North American affiliate of BASF AG (Ludwigshafen, Germany), which is listed on the New York Stock Exchange under the trading symbol "BF".

"We don't make a lot of the products you buy. We make a lot of the products you buy better.(R)" summarizes BASF's diverse product mix including chemicals, polymers, automotive and industrial coatings, colorants, nylon fibers and agricultural products. BASF in North America employs more than 15,000 people at more than 50 locations. BASF Corporation can be found on the Internet at www.basf-corp.com.