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U.S. REACHES ENVIRONMENTAL SETTLEMENT

WASHINGTON - Nucor Corporation Inc. will spend nearly $100 million to settle an environmental suit alleging that it failed to control the amount of pollution released from its steel factories in seven states, under an agreement reached today with the Justice Department and the EPA. This is the largest and most comprehensive environmental settlement ever with a steel manufacturer.

The settlement, filed in U.S. District Court in Florence, S.C., will require Nucor to undertake broad environmental improvements at its 14 facilities in Alabama, Arkansas, Indiana, Nebraska, South Carolina, Texas and Utah. The Charlotte, N.C.-based company also will pay a $9 million civil penalty and spend another $ 4 million on continued emissions monitoring of hazardous pollutants and environmental projects to benefit the communities where the factories are located.

"This is one more action by the Clinton Administration to protect the health of families and local communities from threats to their health posed by toxic pollution," said EPA Administrator Carol M. Browner. "Today's action sends a signal once again that this Administration will ensure that our environmental laws are properly enforced."

The agreement covers eight Nucor "mini-mills," which produce steel by melting scrap metal in large electric arc furnaces, and six steel fabrication plants, where the final molding and painting of steel products occurs. The settlement resolves allegations, contained in a federal complaint filed along with the agreement, that Nucor violated environmental standards regulating the release of pollutants into the air, water and soil. The complaint alleges that Nucor's failure to control air pollution resulted in thousands of tons of illegal air emissions each year.

"This settlement will improve air quality for thousands of people who live around these factories," said Lois Schiffer, Assistant Attorney General in charge of the Environment Division at the Justice Department. "Under this agreement, Nucor will lead the industry by installing an estimated $85 million worth of state-of-the-art pollution controls."

The complaint also alleges that Nucor mismanaged K061 dust, a hazardous waste produced by its steel furnaces. This dust, which contains lead and cadmium, was disposed of improperly at Nucor factories, where it contaminated soil and groundwater. The dust also was discharged illegally through wastewater and storm water.

This settlement has the potential for a reduction of an estimated 6,400 tons of nitrogen oxide and 3,000 tons of volatile organic compounds over eight years. Under the settlement, Nucor will install air pollution control equipment to limit emissions of nitrogen oxides from its arc furnaces and reheat furnaces. The pilot technology called for in the settlement is expected to set a new standard in the steel industry for controlling emissions of nitrogen oxides from furnaces and volatile organic compounds from paint operations. Nitrogen oxides and volatile organic compounds are key contributors to ground-level ozone, or smog, which can decrease lung function and aggravate respiratory problems.

The terms of the settlement also require Nucor to improve its methods for the K061 dust; sample groundwater and soil at each of its factories; and identify those areas that are contaminated with K061 dust and clean them up under an EPA or state-approved plan.

Four states - Arkansas, Utah, South Carolina and Nebraska - have joined the United States in today's settlement with Nucor.

"South Carolina is pleased to have the opportunity to work cooperatively with the EPA by participating in this action. We look forward to the emissions reductions that are likely to be achieved by implementation of the requirements of this consent decree," Richard Sharpe, director of compliance management for the Bureau of Air Quality at the South Carolina Department of Health and Environmental Control.

The company will pay a $9 million civil penalty to settle allegations that it violated federal environmental laws including the Clean Air Act, Clean Water Act, Emergency Planning and Community Right to Know Act, and the Resource Conservation and Recovery Act, a hazardous waste statute. The agreement also calls for Nucor to carry out several community-based projects to benefit the environment.

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