WILMINGTON, Del. (WECT) - DuPont, Chemours and Corteva announced Friday that they have reached an agreement to settle legal disputes over who is responsible for liabilities related to the use of per- or polyfluoroalkyl substances (PFAS).
The settlement establishes a cost-sharing agreement and an escrow account “to be used to support and manage potential future legacy PFAS liabilities arising out of pre-July 1, 2015 conduct,” a DuPont news release states.
According to the terms of the arrangement, DuPont and Corteva will pay for 50 percent of “certain qualified expenses” while Chemours is responsible for the other 50 percent up to a total of $4 billion.
“DuPont and Corteva’s 50 percent will be limited to $2 billion including qualified expenses and escrow contributions,” the news release states. “Under the existing Letter Agreement from June 1, 2019, DuPont and Corteva will each bear 50 percent of the first $300 million (up to $150 million each) and thereafter, DuPont bears 71 percent and Corteva bears the remaining 29 percent. DuPont’s share of the potential $2 billion would be approximately $1.36 billion and Corteva’s approximately $640 million.”
The companies also agreed to establish a $1 billion maximum escrow account to address any future PFAS liabilities.
PFAS, including GenX which was discovered in the Cape Fear River in 2017, are man-made chemicals produced by Dupont/Chemours and used in the manufacturing of nonstick coatings, fire suppression foams, and for many other purposes in industrial processes and commercial products. They’re also known as “forever chemicals” because they don’t break down in the environment or in the human body.
Ed Breen, DuPont chairman and CEO; Jim Collins, Corteva CEO and Mark Vergnano, Chemours president and CEO released the following statement:
“We are pleased to have reached a settlement agreement between our companies related to potential legacy PFAS liabilities, as well as resolving the remaining PFOA MDL cases in Ohio. The agreement will provide a measure of security and certainty for each company and our respective shareholders using a transparent process to address and resolve any potential future legacy PFAS matters.”
The news release can be found here.