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Buyout Agreement
Herculaneum Lead Contamination
The final settlement agreement between the Missouri Department of Natural Resources, Attorney General's Office, Department of Health and Senior Services and the Doe Run Company was signed April 26, 2002. The written agreement formalized the agreement in principle reached March 21, 2002.
The agreement resolves the September 25 order issued by the Department of Natural Resources and several notices of violation issued to the company. It does not relieve Doe Run from compliance with the Administrative Order on Consent issued May 2001, subsequent orders issued by EPA, or any future compliance with any applicable federal or state law or rule. It also does not affect any other ongoing or planned activities at the site to address air quality or contamination problems.
The centerpiece of the agreement is the voluntary property purchase. This part of the agreement requires Doe Run to offer to purchase homes within a defined area. The defined area contains approximately 160 homes for which Doe Run will be required to make a purchase offer by December 31, 2004. Offers will be made in phases, priority is based on health risks. The company will make the first set of offers to homeowners with children less than 72 months of age residing in the home. The company will make the rest of the offers over a period of time ending December 31, 2004. All offers will remain open until that date. The Doe Run Company may not condition any property acquisition on the homeowner providing a release from liability.
In order to ensure homeowners receive a fair offer for their home, offers will be based on a combination of "fair market value" and a "Replacement Housing Payment" (RHP). Fair market value will be based on an appraisal of the home by an independent appraiser using the Uniform Standards of Professional Appraisal Practice. The RHP is a differential payment which will be computed by subtracting the fair market value from the value of a suitable replacement home currently for sale on the market of similar size, function/purpose and location (including no known adverse environmental conditions.) This process is designed to ensure homeowners are not penalized by any decrease in property value resulting from contamination.
Upkeep of the acquired properties will be the responsibility of the Doe Run Company. Homes left standing must remain vacant until such time as either the company demolishes the residence or re-deposition studies of lead contamination are complete and the Department of Health and Senior Services, the Department of Natural Resources, the city of Herculaneum and the company agree re-occupancy of a residence will not risk human health. If the Doe Run Company fails to comply with the provisions related to the voluntary property acquisition, they will be required to pay a civil penalty of $1 million.
The agreement also addresses transportation and materials handling through the Transportation and Materials Handling Plan currently being reviewed by Doe Run and EPA. The final plan is due from Doe Run by
For more information on the buyout agreement, contact the Missouri Department of Natural Resources at 800-361-4827.
Buyout Agreement (7/02) 145 KB PDF
Herculaneum Voluntary Property Purchase Plan - Exhibit A (7/02) 95 KBPDF
Buyout Zone Map - Exhibit B (7/02) 578 KB PDF
