MOTCO TRUST GROUP MAKES ANNOUNCEMENT
MOTCO TRUST GROUP MAKES ANNOUNCEMENT HOUSTON, Dec. 5 /PRNewswire/ -- The Motco Trust Group (the Trust)
acknowledged that the remediation contractor, IT Corporation (IT), suspended pit remediation and incineration activities on Nov. 26.
The Trust and IT have a dispute over contractor performance, costs and claims and IT has informed the Trust that they are unable with their technology to complete the work at the agreed upon firm contract price of approximately $30 million. While IT's action may result in some delay of remediation at Motco, it will not deter the Trust from successfully completing the project. The Trust is committed to a successful, environmentally sound remedy and that commitment is undiminished by these events. "Our first concern is to assure the community we intend to remediate this site, and that the job will be done in compliance with every applicable requirement," said Trust project manager Eugene F. Stecher. IT was selected as remediation contractor in 1988 and installed two portable incinerators on the site during 1989 and 1990. However, the contractor has not yet successfully completed the trial burns necessary to receive approval from the Environmental Protection Agency for full operation. The Trust also responded to news reports of a lawsuit brought against it by IT over the contract dispute. "We haven't yet seen their suit, but we're very disappointed by IT's actions and we intend for them to honor their contractual obligations. We have previously investigated their claim and have found it to be without merit. We will vigorously defend against IT's lawsuit and seek recovery of any losses the Trust suffers as a result of IT's actions," Stecher said. Although the parties have been discussing the issues over the past several months they never reached any agreement for a change in the contract. Despite good faith negotiations over the last several months the parties never reached any agreement for additional compensation or a change in the contract because of IT's current technology and operational costs. "We have a valid contract with IT and believed they were negotiating in good faith with us today until we heard about this suit," said Stecher. Stecher noted all bidders had detailed information about the site and the opportunity to conduct their own on-site investigations. In light of IT's actions, the Motco Trust Group is exploring with the Environmental Protection Agency the best way to proceed toward the project's ultimate objective; to protect public health and the environment through an effective remedy of the Motco site. "We would have preferred no interruption in timely performance of the contract and we regret that IT chose to do otherwise. Our commitment to an environmentally sound remedy is firm and we intend to vigorously pursue successful completion. We will continue to work with the community to assure their confidence in the process and the results," Stecher said. The Trust will assure that site security, water treatment, air monitoring and other necessary activities will continue. Cleanup of Motco has been divided into two major parts: the source (pit) materials, and the Management of Migration. Following competitive bidding in 1987 a lump sum contract for source (pit) remediation was let to IT in January 1988. Work on the Management of Migration is now in progress under another remediation contractor. The Motco Trust was established by companies identified by the Environmental Protection Agency as potentially responsible for cleanup under Superfund law. The site operated as a chemical reclamation and reprocessing facility, but ultimately was abandoned. Motco was the name of the former owner that later declared bankruptcy. Monsanto has the largest financial interest in the Trust and has advised that the dispute is not expected to have any material adverse effect on Monsanto's financial position. -0- 12/5/91 /CONTACT: Norma J. Goldman of Goldman & Company, 409-945-0217, or 713-873-0222, for Motco Trust Group/ CO: Motco Trust Group ST: Texas IN: SU: SH -- NY019 -- 9534 12/05/91 09:33 EST
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|Date:||Dec 5, 1991|
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