3103 NW Lower River Road, Vancouver, WA 98660 (360) 693-3611 Fax (360) 735-1565 www.PortVanUSA.com For Immediate Release February 1, 2006 PORT AGREEMENT ADDS LAND, KEEPS JOBS AND CONTINUES CLEANUP Vancouver, Wash. – The Port of Vancouver, local jobs and the environment are all winners in an agreement approved at a special Port of Vancouver Commission meeting today. The memorandum of understanding signals the settlement of a multi-year lawsuit surrounding the cleanup of groundwater contamination in the Fruit Valley area of southwest Vancouver. Under the settlement agreement, the Port will purchase 11 acres of land, a 75,000 square feet building, and take responsibility for the completion of the environmental cleanup project at the Cadet Manufacturing facility, located on Fourth Plain Boulevard adjacent to existing port properties. Operations at the Cadet Manufacturing facility (which employs more than 100 to manufacture electrical heaters) will remain unchanged. In exchange, the port would receive $10 million cash and the right to seek recovery of an additional $14 million in insurance claims. The Port would also drop its current suit against Cadet Manufacturing, Inc. The proposed agreement would allow the heating unit manufacturer to continue its Vancouver operations, leasing back the facility from the port. “This agreement allows the cleanup of one co-mingled site to be better coordinated and occur more quickly,” said Port Executive Director, Larry Paulson. “In addition, we are acquiring property that is contiguous to the port’s current operating facility to promote jobs and economic development.” Contamination at the Cadet site, and also at property owned by the Port of Vancouver, was discovered as a result of the construction of the Mill Plain Extension project in the late 1990s. The cleaning solvent trichloroethylene (TCE), was found to have impacted soil and groundwater at both sites. TCE was commonly used as an industrial solvent until the 1980s. Swan Manufacturing Company, a baseboard heater manufacturer and corporate predecessor to Cadet, had formerly occupied the 0.88-acre site from 1956 to 1964, and was identified as a source of TCE contamination. The port purchased the former Swan site in 1982, where a restaurant/tavern, last known as Ragg's Tavern, had operated for almost 20 years. In 1964, the manufacturer moved its operations across Fourth Plain Boulevard to its current site at Cadet Manufacturing. “Even though the Port inherited the clean-up site, we have worked closely with the Washington Department of Ecology to remediate the contamination,” said Port Environmental Director, Patty Boyden. “Our environmental efforts focus on prevention of contamination in current operations, improvement in development and redevelopment projects, and cleanup of past practices.” Since 1998, both Cadet and the Port have been working on cleaning up these sites under separate Agreed Orders with the Department of Ecology (Ecology). To date, Cadet Manufacturing has removed 540 pounds of chlorinated solvents from soil and groundwater at its property and the Port of Vancouver has decreased solvents by approximately 80 percent at the former Swan site. Past practices at the nearby industrial properties resulted in chlorinated solvents entering the soil and ground water. Contaminated groundwater is getting cleaner because of efforts to remove pollution from the co-mingled Swan/Cadet plumes, according to the Department of Ecology. “While we have not seen the terms of the settlement, we appreciate that the Port and Cadet worked together on this. We anticipate the settlement may allow the cleanup process to be simpler and more streamlined,” said Rebecca Lawson, a manager in Ecology’s toxics cleanup program. In addition to removing the solvents from the environment, the port and Cadet evaluate contamination through an extensive network of groundwater testing wells. Thorough testing and cleanup actions remain top priorities for the Port of Vancouver in treating the TCE-impacted site. Port clean-up to date: Upon discovery of the contamination in 1998, the Port of Vancouver removed and successfully treated 14,000 cubic yards of contaminated soil. In cooperation with Ecology, the groundwater at the source has been treated by a chemical oxidation method and has decreased solvents by about 80 percent. To date, the port has spent over $13.5 million on this clean up project, with approximately $3.4 million paid for by DOE grants. The Port estimates an additional $22 million to complete the cleanup projects at both the Swan and Cadet sites. Cadet clean-up to date: Cadet has installed a treatment system at its plant site, in addition to treatment devices in the surrounding area. Next steps: Settlement Agreement: This agreement is contingent on court approval. Cadet Property Purchase: Purchase of the property is contingent on the amendment of the Port’s Comprehensive Scheme for Harbor Improvements and Industrial Development which depicts any port improvements or expansion. Public comments will be taken at a public hearing prior to the adoption of any changes to the current comprehensive scheme. Clean-Up: Next steps would include the development of a feasibility study for analyzing alternatives to determine the best technology to coordinate the clean up of both sites. The feasibility study will be reviewed and approved by Ecology prior to implementation. -30More information on the project is available: 1) Cadet Manufacturing: http://www.cadetco.com/environment/index.php 2) Department of Ecology: http://www.ecy.wa.gov/programs/tcp/sites/cadet/cadet_hp.htm 3) Port of Vancouver: http://www.portvanusa.com Contacts: Maureen Chan-Hefflin, Port of Vancouver (360) 992-1107 email: mhefflin@PortVanUSA.com Barbara Smith for Cadet Manufacturing, Harris & Smith Public Affairs (206) 343-0250 email: barbara@harrisandsmith.com Sandy Howard, Washington State Department of Ecology (360) 407-6239 (Olympia) email: srud461@ecy.wa.gov 3103 NW Lower River Road, Vancouver, WA 98660 (360) 693-3611 Fax (360) 735-1565 www.PortVanUSA.com FORMER SWAN MANUFACTURING SITE CLEANUP PROJECT SUMMARY The Port of Vancouver’s environmental efforts focus on prevention in current operations, improvement in development and redevelopment projects, and cleanup of past practices. Since the mid-1990s, the Port has returned 55 acres of contaminated sites to productive property for use by Port tenants such as Pacific Coast Shredding, Tri-Star Transload, Glacier Northwest, and Marine Terminals Corporation. The Port works closely with the Washington State Department of Ecology (Ecology) to ensure site cleanup activities are conducted in a timely manner, and in accordance with the Model Toxic Control Act (MTCA), and other applicable laws and regulations. Ecology provides technical and regulatory oversight and cost sharing in the investigation and cleanup under the Remedial Action Grants Program. The Port is committed to pursuing cost recovery from the industrial parties responsible for the contamination. Site Background: The Port of Vancouver purchased 0.88 acres of property adjacent to port operations in 1982 where a restaurant/tavern, last known as Ragg's Tavern, had operated for almost 20 years. During the early phase of the Mill Plain Extension project in 1997, it was discovered that chlorinated solvents, primarily trichloroethylene (TCE), had impacted soil and groundwater at the site, located at the southwest corner of Fourth Plain Blvd. and the Mill Plain extension. Further investigation by the Port found that the former Swan Manufacturing Company (SMC), a baseboard heater manufacturer, had occupied the site from 1956 to 1964 and had used TCE in its operations. TCE was commonly used as an industrial solvent until the 1980s. Chlorinated solvent contamination was subsequently discovered at the Cadet Manufacturing facility north of the former SMC site. The Cadet facility had also been previously operated by SMC. The Washington Department of Ecology (Ecology) named the Port as a potentially responsible party under the Model Toxics Control Act because of the Port’s status as an “owner” of the property. The Port entered into an Agreed Order with Ecology in 1998 to remediate contamination at the SMC site in order to keep the Mill Plain Extension project on schedule and to fulfill the Port’s commitment to environmental stewardship. An MTCA contribution action was filed against Cadet, as the corporate successor to SMC. Both Cadet and the Port have been working on cleanup of these sites under separate Agreed Orders with Ecology. Successful Soil Cleanup: Early actions by the Port enabled the soil contamination to be treated successfully. About 14,000 cubic yards of TCE-impacted soil was identified, excavated and treated on site. In addition, Port Building #2220 was demolished in order to excavate and treat the soil underneath the building. Under the Port's Agreed Order with Ecology, the stockpiled TCE-impacted soil was treated with soil vapor extraction technology. A piping system in the stockpile was installed to force warm air into the stockpile and vacuum out the TCE vapors, which were then collected in a carbon canister and properly disposed. In 1999, Ecology approved the treated and cleaned soil for industrial reuse at the Port’s new main entrance project at West 26th Extension, south of NW Lower River Road. Groundwater Findings and Cleanup: Studies indicate that groundwater emanating separately from the two sites co-mingles south of Fourth Plain Boulevard. Surrounding residential neighborhoods receive drinking water from the City of Vancouver. The drinking water source closest to the SMC site is the Port’s wells, located approximately a mile away from the SMC site. The Port wells are tested quarterly for TCE and other related compounds, and the tests continue to meet state and federal drinking water standards. Water from the Port’s wells remains safe for consumption. The Port has installed an extensive network of groundwater monitoring wells and geoprobes to evaluate the extent of TCE contamination in the groundwater. The investigation confirms that the highest concentrations of TCE remain below the SMC site. To address the contamination at the SMC site, several cleanup methods were evaluated by the Port and Ecology. The chemical oxidation method using Fenton’s reagent was ranked as the safest, most efficient and cost effective way to eliminate TCE in groundwater in the source area. Fenton’s reagent, consisting of hydrogen peroxide and a ferrous iron catalyst, was injected into the subsurface where it breaks down TCE to harmless byproducts of carbon dioxide, water and chloride. The Port completed Fenton’s treatment in 2004 and decreased solvents in the groundwater by about 80 percent at the SMC site. Cadet has removed 540 pounds of chlorinated solvents from the groundwater at its property using seven re-circulating cleanup wells. In partnership with Ecology, a final cleanup to address remaining contamination will be evaluated. In addition to removing the solvents from the environment, the Port and Cadet evaluate contamination through an extensive network of groundwater testing wells. Thorough testing and cleanup actions continue to be top priorities for the Port of Vancouver in treating the TCEimpacted site. Air Testing: Cadet, the Port, and the Departments of Ecology and Health have also worked together to determine if solvent vapors have risen from the groundwater into indoor air within the impacted area, primarily the Fruit Valley neighborhood. Residences in the north neighborhood were tested, and in 2002, Cadet installed vapor filtration systems in six homes with higher levels of solvent vapor. Washington Department of Health officials believe there is no immediate health threat at the sampled residences, and sampling continues at the south neighborhood to assess if indoor air testing is needed. Solvents easily evaporate and are commonly found in both outdoor and indoor air. Potential solvent vapor sources found in indoor air can come from products brought into a home such as cleaning products, glues and adhesives, dry cleaned clothes, carpeting, and paints. Next steps: Next steps would include the development of a feasibility study for analyzing alternatives to determine the best technology to coordinate the clean up of both sites. The feasibility study will be reviewed and approved by DOE prior to implementation. If you have general questions on the Port’s cleanup efforts, please call: Maureen Chan-Hefflin, Communications Manager Patty Boyden, Environmental Services Director (360) 693-3611 or email: info@PortVanUSA.com If you have project-related questions, please contact: Craig Rankine Washington Department of Ecology (360) 690-4795 or email: cran461@ecy.wa.gov If you have health-related questions, please contact: Barbara Trejo Washington Dept. of Health, Tumwater Toll Free: 1-877-485-7316 or email: Barbara.Trejo@doh.wa.gov