Attorney General Mike Cox and the Michigan Department of Environmental Quality (MDEQ) announced that they have successfully negotiated a settlement with Grand Trunk Western Railroad (Grand Trunk) and 25 other companies that will provide additional cleanup of groundwater contamination in Battle Creek, Michigan and payment of more than $750,000 in costs and damages to the State.

"This settlement is an important step in resolving a significant environmental problem," said Cox. "It not only ensures the long-term protection of a public water supply, but it also provides just compensation to the people of Michigan for costs and damages resulting from the pollution. My office will continue to ensure that Michigan's environment remains protected."

MDEQ Director Steven E. Chester said, "I am pleased that this settlement will provide the community with the assurance that their water supply will remain protected. By working together, these businesses can help us live up to our goals of protecting Michigan's environment and ensuring Michigan's future."

Cox filed a complaint in the Grand Rapids U.S. District Court for the Western District of Michigan on January 17, 2006, alleging that the Defendants caused soil and groundwater pollution at and adjacent to the Verona Well Field, an area on the eastern edge of Battle Creek where the city draws most of its municipal water supply. Cox alleges that the pollution resulted from leaks of industrial chemicals and disposal of chemical wastes in the 1960s and 1970s at two locations formerly operated by the now bankrupt Thomas Solvent Company and a railroad car maintenance facility operated by Grand Trunk.

On February 21, 2006, Judge Robert Holmes Bell of the U.S. District Court approved a Consent Decree entered by the parties. As part of the overall settlement, Grand Trunk and the other companies, former customers of Thomas Solvent, have agreed to the following:

* To enhance the groundwater cleanup systems that have been operating at the site for several years to ensure the protection and restoration of enough groundwater to meet the city's projected future water supply needs;

* To reimburse the State more than $361,000 in past cleanup costs and interest, as well as future State costs; and,

* To pay the State almost $400,000 and perform additional cleanup work valued at more than $200,000 to compensate for damages to natural resources and restore groundwater quality.