Metech International Reaches Tentative Agreement With EPA

Business Wire, Feb 20, 1998

MAPLEVILLE, R.I.--(BUSINESS WIRE)--Feb. 20, 1998--Metech International, Inc., a company engaged in the recycling of precious metals such as gold and silver, has settled a dispute with the U.S. Environmental Protection Agency over whether certain technical violations of the nation's hazardous waste laws may have occurred at the company's Mapleville, Rhode Island facility during the period 1993-1994.

The government filed a proposed consent agreement setting forth the terms of the settlement with the federal district court in Providence, Rhode Island on February 18, 1998. The settlement is expected to take effect after a public comment period and approval of the agreement by the court.

"Metech has conducted itself as a good corporate citizen," said John D. Koskinas, president of Metech International. "No harm has been done to any individuals or the environment as a result of these alleged technical violations, and there is no potential for harm because of them. We are a strong proponent of sound environmental regulation for industry, and have maintained a cordial, practical dialogue throughout this extensive dispute process."

EPA's chief allegation was that certain shipments of one of Metech's main products, precious metal bearing powders, should have been accompanied by a document labeling the materials as hazardous wastes. Metech's position is that such materials, which are extremely valuable - sometimes worth several million dollars per ton - and are sold to producers of refined precious metals, are not wastes subject to regulation by EPA. Metech also objected to EPA's characterization of the materials as hazardous, without any evidence that they actually pose a risk, based simply on the fact that they are sometimes produced from extensive processing of material that started out as hazardous.

Metech, following EPA's suggestion for settlement, agreed to petition the Rhode Island Department of Environmental Management ("RIDEM") for a variance declaring the precious metal bearing powders to be products, rather than wastes. Metech's petition has already been filed with RIDEM and the company is awaiting the Department's decision. The company previously received a similar variance from EPA for products from its Gilroy, California facility and Koskinas said that he is not aware of any reason why RIDEM should not grant the requested variance. In what was characterized by John P. DeVillars, EPA Region I Administrator, as a "creative settlement", Metech would still have an opportunity to challenge EPA's position in court if the Department denied the variance.

EPA also alleged that Metech stored certain used chemicals in tanks longer than is generally allowed without a hazardous waste storage permit. Metech maintains that such used chemicals sometimes contain recoverable amounts of precious metals and can not be regulated as wastes until testing and processing of the chemicals is complete. As part of the settlement with EPA Metech agreed to install new equipment for sampling, testing, and recovering precious metals from the used chemicals, prior to short-term placement in the pre-existing tanks. This equipment has now been in place for nearly a year. The company also agreed to pay a civil penalty substantially lower than originally sought by EPA.

In commenting on the settlement, Koskinas said that the company found the case particularly frustrating because Metech's business conserves resources and benefits the environment by recycling precious metals that would otherwise have to be mined. He said that Metech is committed to full compliance with the environmental laws and continues to believe that it has done nothing wrong. He stated, however, that the time and attention that would have been required to litigate the dispute with the government could be better spent expanding the company's business, and the company therefore decided to pursue a settlement.

CONTACT: Metech International Donnelly & Duncan

John D. Koskinas Gail H. Wagner

(401) 568-0711 (401) 431-1177