Attorney General James Responds To Lawsuit Against New York Rent Stabilization Laws

  Attorney General Letitia James released the following statement in response to a lawsuit filed in the Eastern District of New York challenging the constitutionality of New York’s rent regulations:  

“The Tenant Protection Act is a critical step in reforming the state’s broken rent regulation system—a system that bad-acting landlords have manipulated and controlled for far too long. My office is committed to defending this law, and ensuring that New Yorkers across the state have access to safe, affordable homes they need and deserve.” 

Engel Cosponsors Resolution Condemning Trump Tactics at the Border

  Congressman Eliot L. Engel and 56 of his Democratic colleagues have signed on as original cosponsors of a resolution condemning the President and his administration’s policies toward asylum seekers at the U.S.-Mexico border. The resolution comes on the heels of the Trump Administration’s latest efforts to cut off protections for asylum-seekers through Executive Order.

“It is no secret that the President has created a horrific, cruel and inhumane humanitarian crisis at our southern border,” Engel said. “DHS, ICE, and CBP have separated families, caged asylum-seekers, and had children die under the ‘watch’ of the U.S. government. This is on top of the fact that there are secret social media groups of CBP employees spewing heinous comments about the migrants they are abusing and my fellow members of Congress.

“Congress cannot stay silent on these abuses. With this resolution, my colleagues and I are taking a stand against this President and his administration’s disgusting, inhumane practices.”

State Senator Gustavo Rivera and Assembly Member Victor Pichardo Sixth Annual Senior Health Fair on July 26 at Monroe College

MAYOR DE BLASIO, NYC EMERGENCY MANAGEMENT, HEALTH DEPARTMENT AND DEPARTMENT OF SOCIAL SERVICES UPDATE NEW YORKERS ON EXTREME HEAT

Heat Index expected to reach 109 degrees by Saturday; Cooling Centers open through Sunday

  Mayor Bill de Blasio, Emergency Management Commissioner Deanne Criswell, Health Commissioner Dr. Oxiris Barbot and Department of Social Services Commissioner Steven Banks today updated New Yorkers on the extreme heat expected through the weekend. According to the National Weather Service, temperatures and heat indices will increase at the end of this week, reaching dangerously high levels by the weekend. Friday’s expected heat index is 98 degrees, Saturday’s expected heat index is 109 degrees, and Sunday’s expected heat index is 103 degrees. A Flash Flood Watch is also in effect from 2 PM Wednesday to 4 AM Thursday, due to heavy rain expected on Wednesday.

Due to the heat:

•         NYC Emergency Management has activated its Emergency Heat Plan.

•         Approximately 500 Cooling Centers have been activated around the city. To find a cooling center, including accessible facilities, New Yorkers should call 311 or visit the NYC Cooling Center Finder at www.nyc.gov/beattheheat.

•         From Friday through Sunday, pools will be open an extra hour: from 11 a.m. to 8 p.m.

•         DSS has issued a Code Red. During a Code Red, outreach teams redouble their efforts citywide, with a focus on vulnerable unsheltered New Yorkers and shelter is available system-wide to accommodate homeless New Yorkers who are brought to shelter by outreach teams or who walk in seeking respite from heat.

•         In order to conserve energy during periods of high demand, New Yorkers should reduce personal energy usage by set air conditioners on low or to 78 degrees, turn off air conditioners when not home and close their doors.

•         To help keep New Yorkers hydrated, the Department of Environmental Protection will have Water-on-the-Go portable drinking water fountains positioned at busy pedestrian areas across the five boroughs from Friday to Sunday.

“Extreme heat is dangerous, period,” said Mayor de Blasio. “I urge all New Yorkers to exercise caution this weekend as temperatures near 100. Look out for your neighbors, friends and family and call 311 to find a cooling center. We are deploying all resources at our disposal to ensure New Yorkers remain safe and cool during extreme heat.”

“Extreme heat is an underestimated and deadly hazard. The best way to beat the heat is to use an air-conditioner or to visit one of the City’s Cooling Centers,” NYC Emergency Management Commissioner Deanne Criswell said. “NYC Emergency Management will continue to work closely with the National Weather Service to monitor weather conditions throughout the period of extreme heat.”

“Hot weather is dangerous and can kill. People with chronic physical and mental health conditions should use air conditioning if they have it, and get to a cool, air conditioned place if they don’t,” said Health Commissioner Dr. Oxiris Barbot. “During times like these, we all need to look out for each other. Be a buddy and check on your family, friends, and neighbors who are at risk and help them get to a Cooling Center or another cool place – even if for a few hours.”

“24/7/365, our outreach teams are engaging New Yorkers in need, offering them services, shelter, and a helping hand,” said NYC Department of Social Services Commissioner Steven Banks. “During extreme weather, we redouble our efforts citywide to assist our most vulnerable neighbors and ensure they can access crucial resources, like cooling centers, cold water, and other essentials, as we continue to encourage each individual to ultimately accept services and move off the streets and subways to safer settings indoors.”

In New York City, most heat-related deaths occur after exposure to heat in homes without air conditioners. Air conditioning is the best way to stay safe and healthy when it is hot outside, but some people at risk of heat illness do not have or do not turn on an air conditioner. New Yorkers most at risk are those with chronic medical, mental health, cognitive or developmental conditions, take certain medicines that can affect body temperature, have limited mobility or are unable to leave their homes, are obese, or misuse alcohol or drugs.

HEALTH AND SAFETY TIPS FOR PROTECTION AGAINST THE HEAT:

•         Go to an air-conditioned location, even if for a few hours.

•         Stay out of the sun and avoid extreme temperature changes.

•         Drink water

•         Wear lightweight, light-colored clothing when inside without air conditioning or outside.

•         Protect your pets and service animals when extreme heat strikes:

o   Never leave pets in the car. Temperatures rise quickly even with the windows down and can be deadly for your pet. Call 911 if you see a pet or child in a hot car.

o   Be sure your pets have access to plenty of water, especially when it is hot.

•         Participate in activities that will keep you cool, such as going to the movies, shopping at a mall, or swimming at a pool or beach.

•         Make sure doors and windows have tight-fitting screens and, in apartments where children live, window guards.

•         Never leave your children or pets in the vehicle, even for a few minutes.

•         Check on your neighbors during a heat wave, especially if they are seniors, young children, and people with disabilities.

KNOW THE WARNING SIGNS OF HEAT ILLNESS:

Call 911 immediately if you or someone you know has:

•         Trouble breathing.

•         Hot dry skin

•         Rapid heartbeat.

•         Confusion, disorientation, or dizziness.

•         Nausea and vomiting.

If you or someone you know feels weak or faint, go to a cool place and drink water. If there is no improvement, call a doctor or 911.

ENHANCED HOMELESSNESS OUTREACH EFFORTS DURING EXTREME WEATHER:

DSS outreach teams are redoubling their efforts citywide, with a focus on vulnerable unsheltered New Yorkers and shelter is available system-wide to accommodate homeless New Yorkers who are brought to shelter by outreach teams or who walk in seeking respite from heat. During heat emergencies, experienced outreach teams work to connect homeless New Yorkers with the following resources:

·         Shelters: During a Code Red, shelter is available system-wide to accommodate anyone who is reasonably believed to be homeless and is brought to a shelter by outreach teams. Accommodations are also available for walk-ins.

·         Safe havens and stabilization beds: Chronically homeless individuals may be transported directly to these low-barrier housing programs.

·         Drop-in Centers: During a Heat Emergency, DSS/DHS conducts additional outreach to unsheltered New Yorkers and DSS/DHS drop-in centers with a cool space will be open to serve as many clients as possible. Homeless individuals experiencing heat-related discomfort are also able to access the designated cooling area at any shelter.

·         Street homeless outreach: Teams will contact vulnerable individuals on their Code Red Priority Lists:

·         At least once during the Code Red Level 1 (when the forecasted heat index reaches 100 degrees Fahrenheit or higher for one day or more or heat indices are forecasted to reach 95 degrees Fahrenheit or higher at any point for two consecutive days or more) beginning at 12:00 pm. 

·         No less than twice during Code Red Level 2 (occurs when the forecasted heat index reaches 105 degrees or more Fahrenheit for any duration or heat indices are forecasted to reach 95 degrees Fahrenheit for four days or more) to encourage them to accept services, including transportation to shelter placement.

·         DSS coordinates borough-level Code Red efforts directly with partner City agencies, including but not limited to NYPD, DSNY, and the Parks Department.

FIRE HYDRANT USE:

The improper opening of fire hydrants wastes 1,000 gallons of water per minute, causes flooding on city streets, and lowers water pressure to dangerous levels, which hamper the ability of the Fire Department to fight fire safely and quickly. Properly used “spray caps” reduce hydrant output to a safe 25 gallons per minute while still providing relief from the heat. To obtain a spray cap, an adult 18 years or older with proper identification can go to his or her local firehouse and request one.

ENERGY-SAVING TIPS:

In order to conserve energy during the heat wave, New Yorkers should set their air conditioners to 78°F or “low.”

·         Run appliances such as ovens, washing machines, dryers and dishwashers in the early morning or late at night when it is cooler outside to reduce heat and moisture in your home.

·         Close doors to keep cool air in and hot air out when the air conditioner is running.

·         Keep shades, blinds, and curtains closed. About 40 percent of unwanted heat comes through windows.

·         Turn off air conditioners, lights, and other appliances when not at home, and use a timer or smart technology to turn on your air conditioner about a half-hour before arriving home. Keep air conditioner filters clean.

·         If you run a business, keep your door closed while the air conditioner is running.

·         Tell your utility provider if you or someone you know depends on medical equipment that requires electricity.

"Extreme heat can be deadly for those with underlying medical conditions and it makes the dangerous work of Firefighters and EMS members even more difficult," said Fire Commissioner Daniel A. Nigro. "I urge New Yorkers to take precautions during this heat wave, use 911 only if it is an emergency, check on your neighbors, and use a sprinkler cap when opening a hydrant to ensure water pressure remains strong when needed for fighting fires."

“The health and safety of NYCHA residents is paramount. We are prepared to respond to any service interruptions that our developments may face during the extreme heat,” said NYCHA General Manager Vito Mustaciuolo. “We continue to ask residents to report any issues by either using the MyNYCHA app or calling the Customer Contact Center at 718-707-7771, so we can respond as soon as possible.”

“Extreme heat can be deadly. In this City, we look out for our neighbors, which is why we encourage all New Yorkers to check on older adults who are at increased risk during heat emergencies,” said New York City Department for the Aging Commissioner Lorraine Cortés-Vázquez. “Senior centers that operate as cooling centers are open to all ages and can save lives when temperatures are extremely high.”

"New York City has the best tasting tap water around and our portable Water-on-the-Go drinking water fountains will be available across the five boroughs this weekend to help keep people cool," said DEP Commissioner Vincent Sapienza.  "We encourage New Yorkers to help conserve our critical water supply and not open fire hydrants illegally, as this can lower water pressure and make fire fighting more difficult."

“We want New Yorkers and visitors to stay safe and cool during the high temperatures,” said NYC Parks Commissioner Mitchell J. Silver. “From tree shade and cooling centers to spray showers, pools and beaches, we encourage all to use our city resources to beat the heat in the coming days.”

BOROUGH PRESIDENT DIAZ INVESTS $6.1 MILLION IN ORCHARD BEACH PAVILION

Since 2017, BP Diaz has allocated over $16 million to renovate ‘The Bronx Riviera’

  Bronx Borough President Ruben Diaz Jr. announced that his office has invested an additional $6,107,400 in capital funds for the renovation of the historic Orchard Beach Pavilion and South Yard, as part of his FY2020 capital budget allocations.

“Orchard Beach is one of the jewels of not only our borough but all of New York City, and it has the potential to be an even greater tourist attraction thanks to this forthcoming renovation. A revitalized Orchard Beach will undoubtedly attract visitors from all over the region, if not the world,” said Bronx Borough President Ruben Diaz Jr. “This investment is part of our ongoing commitment to our grand vision for a new Orchard Beach, one that will help ‘The Bronx Riviera’ grow as both an economic engine for our borough as well as a destination point for visitors from across the region.”

Orchard Beach is The Bronx’s only public beach and draws visitors from across the city, seeing 1.9 million total visitors in 2017. Its pavilion has been closed to the public since 2007, when deteriorated conditions rendered it unsafe. During the early years of operation, the pavilion created a carnival-like atmosphere, with orchestras playing dance music in front of the pavilion and firework displays launched from offshore on Chimney Island.

The $6.1 million in capital funds that Borough President Diaz is adding to the renovation of Orchard Beach is on top of the $10 million he allocated in FY2017 for the historical venue. Mayor Bill de Blasio has contributed $20 million in capital funding towards the project, and both Governor Andrew Cuomo and New York State Assembly Speaker Carl Heastie have contributed $10 million in funding each.

 

Borough President Diaz believes that, when renovated and reopened, the Orchard Beach Pavilion will once again become an amenity to thousands of beachgoers. Currently, Orchard Beach serves as the home to the annual “New York Salutes America” boardwalk festival and fireworks extravaganza, the “Hoops in the Sun” basketball tournament, as well as The Bronx Summer Concert Series.

Borough President Diaz hosts the concert series each Sunday, from July through August, featuring a wide-variety of artists, including local solo artists and dance teams. This year’s concert series lineup includes (subject to change):

·        July 21st: Frankie Negron and Everything Covered Band

·        July 28th: Raulín Rosendo and Merengue Dorado Band

·        August 4th: The Nelson Gonzalez All Star Band and Conjunto Clasico

·        August 11th: The Mambo Legends Orchestra

·        August 18th: Tipica 73 and Hector Tricoche

·        August 25th: Andy Montañez and Funk Salsa Urban

“Orchard Beach is not just a Bronx beach, Orchard Beach is for the entire city,” said Borough President Diaz. “We have so many great events, based out of Orchard Beach, that bond our community. But there is also so much untapped potential for Orchard Beach. Our investment will allow for us to be able to build first-rate concessions, top notch performance spaces and the ability to host even more top-notch events. Renovation of Orchard Beach will allow the area to evolve into the economic engine it once was and could be once again.”

This year, Borough President Diaz’s office has provided $31,477,000 in total capital dollars to 101 different projects. Since coming to office in 2009, Borough President Diaz has provided $303,374,000 in total capital funding to 905 projects.

DE BLASIO ADMINISTRATION ANNOUNCES DETAILS OF MAJOR CITI BIKE EXPANSION

City releases boundaries of Citi Bike’s next expansion, which will double the current service area by 35 square miles and triple the number of bikes to 40,000; System will expand to a diverse range of communities, including the South Bronx and northern Manhattan in the next year

  The de Blasio Administration joined Lyft to announce the boundaries of the planned expansion of Citi Bike over the next five years, which will bring the nation’s largest bike share system to a larger and more economically diverse range of communities.  Last November, the City and Lyft announced an agreement in which Lyft would invest $100 million to grow and strengthen the system, doubling the size of its service area and tripling the number of bikes over the next five years.  The third phase of Citi Bike’s expansion will bring Citi Bike to all of Manhattan, as well as into the Bronx, and deeper into Brooklyn and Queens.  Administration officials were joined by Borough President Ruben Diaz, Jr. for the announcement on the steps of the Bronx County Courthouse in the South Bronx, where Citi Bike also announced a $300,000 expansion grant program, sponsored by Healthfirst, as well as a new handcycle pilot for the disability community.

“This expansion will help us build a more fair and equitable city for all New Yorkers,” said Mayor de Blasio.  “Even more communities will have access to this low-cost, sustainable mode of transportation. With double the territory and triple the number of bikes over the next few years, Citi Bike will become an even better option for travel around New York City.”

“We are thrilled to work with NYC DOT on expanding one of the world’s best bike share networks — Citi Bike — in an equitable and accessible way,” said Caroline Samponaro, Head of Micromobility Policy at Lyft, the operator of Citi Bike. “Increasing access to affordable transportation options is a proven method for improving economic outcomes for lower-income residents, and through our City Works program, Lyft is committing $50 million annually to this cause in North America. Here in New York, Citi Bike’s expansion to new neighborhoods will provide convenient, affordable, and sustainable transit access to many additional New Yorkers, shortening commutes, boosting public health, and building connections between communities across our great city.”

“Six years after Citi helped launch this fantastic public-private partnership, it’s exciting to see Citi Bike weave its way deeper into the fabric of New York City,” said Ed Skyler, Citi’s Head of Public Affairs. “We welcome this expansion as a way to make Citi Bike even more accessible to the riders who have made it a sustainable, vital form of public transportation that we’re extremely proud to be a part of.”

Citi Bike has begun the expansion with 25 new stations along the L-train corridor in East Williamsburg and Bushwick.  In the months ahead, it will add more stations in these neighborhoods and within Ridgewood, Queens.

Next, Citi Bike will expand into the South Bronx and Upper Manhattan, beginning community board consultation this fall -- with stations installed in 2020.  The planned expansion through 2023 will include the following neighborhoods:

·         The Bronx: Mott Haven, Melrose, Port Morris, Highbridge, Claremont, Morrisania, Longwood, Concourse, and Mt. Eden

·         Brooklyn:  Bed-Stuy, Brownsville, Crown Heights, Prospect Lefferts Gardens, East Flatbush, Sunset Park, South Slope, Windsor Terrace, Prospect Park South and Kensington

·         Manhattan:  Harlem, Hamilton Heights, Sugar Hill, Washington Heights and Inwood (when completed, all of Manhattan will have Citi Bike)

·         Queens: Sunnyside, Maspeth, Elmhurst, Jackson Heights, and Corona

As Citi Bike grows, NYC DOT and Citi Bike will continue their robust community engagement and work alongside local organizations to ensure bike share is planned in an equitable, accessible manner that works for neighborhoods and the City’s overall transportation goals. All of Phase 3 expansion will be contingent upon Lyft meeting—and continuing to meet—strong milestones for providing a high-quality service for New Yorkers.

Lyft has begun to meet these milestones by increasing the Citi Bike fleet to over 13,000 bicycles—its largest ever—and greatly expanding the number of valet stations in the system to more than 40 different locations in total throughout Brooklyn and Manhattan, running on both weekdays and weekends. Additionally, Citi Bike can now be rented through the Lyft app, providing a convenient new way to ride for residents and visitors alike. These improvements have made both more bikes available to riders at the system’s busiest hours as well as increased ridership, leading Citi Bike to smash its single-day ridership record five times in May and June, with the all-time record set on June 12, 2019 with 86,614 trips completed throughout the entire Citi Bike system.

Citi Bike Equity Initiatives:  As part of its agreement with New York City, Lyft has also continued to expand Citi Bike's transportation equity efforts, including the Reduced Fare Bike Share program, presented by Healthfirst. There are now more than 3,300 New Yorkers who live in NYCHA developments or receive SNAP benefits who take advantage of a discounted Citi Bike membership for only $5 a month -- a 55% increase in enrollment in only one year. These members are actively using the system, riding at about twice the rate of full-fare members.  Growth in sign-ups and high-frequency ridership demonstrates that Citi Bike is playing a key role in meeting the transportation needs of thousands of low-income New Yorkers.

Community Grant Program: Citi Bike and Healthfirst also announced today a $300,000 Community Grant Program for local non-profits to grow bike share ridership further in lower-income neighborhoods. These funds are a portion of the sponsorship funds committed to Citi Bike by Healthfirst over the past year. Initial grantees of the community grants are the Bedford-Stuyvesant Restoration Corporation, GrowNYC, Urban Upbound, Union Settlement, GOLES, Red Hook Initiative, and El Puente Bushwick. Citi Bike and Healthfirst will be partnering with and supporting additional non-profit organizations to grow a culture of bike share in the new expansion areas as well.

Handcycle Pilot: Citi Bike is further increasing access this summer by teaming up with NYC DOT on a handcycle pilot.  Handcycles are three-wheeled, hand-controlled, adaptive bikes for both people with disabilities and individuals who do not know how to ride traditional two-wheeled pedal bicycles. The handcycle fleet will be at Weekend Walks, Summer Streets, and other community-based events throughout the city all summer and participation is open to all adults and is completely free-of-charge. Citi Bike and NYC DOT are working with The NYU Ability Project to assess the impact of this initiative and consider future adaptive vehicle programming.

“This is an exciting moment for New York City, as we share the details of this expansion, which will transform the nation’s largest bike share program into one of the largest bike share systems in the world, as we bring bike share to so many more neighborhoods around the City, including here in the South Bronx.” said DOT Commissioner Polly Trottenberg. “We thank Lyft once again for its investment, as we know Citi Bike’s expansion will give even more communities convenient access to this safe, sustainable, affordable and fun way to get around.  As we this summer tackle new efforts to keep cyclists safe, the expansion of Citi Bike will be a critical part of our efforts.”

“With the proper adaptive equipment a person with a disability can participate fully in any activity,” said Victor Calise, Commissioner of the Mayor's Office for People with Disabilities. “The Mayor's Office for People with Disabilities is excited to see that this handcycling pilot program is moving forward. We hope to see this pilot expand beyond handcycles to include other types of bikes that will assist the full range of people with disabilities. We look forward to collaborating with DOT and the disability community to ensure that accessible bikes are on our streets the same way as traditional Citi Bikes. By increasing access to this healthy and environmentally conscious form of transportation, New York City is one ride closer to becoming the most accessible city in the world.”

Citi Bike is an effective, healthy and sustainable mode of transportation for many New Yorkers, and I’m thrilled this next phase will give even more New Yorkers the opportunity to bike around the five boroughs. But as biking becomes more popular we must make sure we make it safe to ride in New York City.  I look forward to working with the Department of Transportation on establishing an connected network of protected bike lanes, and I also look forward to Citi Bike thriving for years to come,” said Speaker Corey Johnson.

“I am so excited that The Bronx will finally be included in the Citi Bike program, which has already become an important part of New York City’s transportation grid,” said Bronx Borough President Ruben Diaz Jr. “Connecting our borough to the Citi Bike network will empower so many Bronxites to travel outside their neighborhood for job opportunities, cultural events and to visit friends and family. Thank you to the DOT and for Citi Bike for investing in The Bronx, and I look forward to working with elected officials, community boards and others to rollout this expansion.”

STATEMENT FROM MAYOR DE BLASIO ON PRELIMINARY POWER OUTAGE FINDINGS FROM CON EDISON

“The city that never sleeps cannot be left in the dark. While I appreciate that Con Edison released their preliminary findings so quickly, I am troubled that one of the few factors Con Edison initially ruled out, the 13,000 volt cable, has been determined to be the catalyst of the outage. Thankfully, as a result of the quick work of our first responders, no one was injured and there was no spike in crime in the five hours the incident lasted. Our City cannot be left in the dark like this ever again, and we will continue to push Con Edison for a full accounting of this incident to ensure they are taking necessary steps to protect all New Yorkers.”

Manhattan U.S. Attorney Announces Bankruptcy Settlement With Responsible Parties At US Magnesium Superfund Site

Settlement Provides More than $33 million for Environmental Cleanup

  Geoffrey S. Berman, United States Attorney for the Southern District of New York, Susan Bodine, Assistant Administrator for Enforcement and Compliance Assurance for the U.S. Environmental Protection Agency (“EPA”), and David Bernhardt, Secretary of the U.S. Department of the Interior (“DOI”), announced today that the United States has entered into a settlement agreement with the bankruptcy trustee for the estates of debtor MAGNESIUM CORPORATION OF AMERICA (“MAGCORP”) and RENCO METALS, INC. (“RENCO METALS”), resolving claims and liabilities related to environmental contamination at a former magnesium production facility in Rowley, Utah.  The settlement agreement remains subject to court approval.

U.S. Attorney Geoffrey S. Berman said:  “Polluters will be held to account, even in bankruptcy, for contaminating the environment.  As a result of today’s settlement, MagCorp and Renco Metals will pay more than $33 million to fund clean-up of the hazardous substances at the US Magnesium Superfund Site.”   

EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine said:  “Settlement of this long running litigation is a significant step forward in the effort to address the environmental issues at the U.S. Magnesium site.  The resources secured will help fund remediation of the site.”

DOI Secretary David Bernhardt said:  “At the Department of the Interior, we are focused on addressing environmental challenges, so we can provide the highest quality of life to all Americans.  If approved by the Court, the funding recovered through this settlement will be used to reclaim and restore access to 58,000 acres of BLM-managed public lands, which were damaged and abandoned by MagCorp over two decades ago.”     

In its proofs of claim filed in this bankruptcy, the United States asserted that MAGCORP and RENCO METALS (collectively, the “debtors”) were liable to EPA and DOI’s Bureau of Land Management (“BLM”) under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) (commonly known as the Superfund statute) for the cost of clean-up of hazardous substances released at a 4,525-acre site adjacent to the Great Salt Lake in Rowley, Utah, where MAGCORP had previously operated a magnesium production facility (the “US Magnesium Site”).  The United States also asserted on behalf of BLM and DOI’s Fish and Wildlife Service that the debtors were liable under CERCLA for natural resource damages caused by these hazardous substances; on behalf of EPA that the debtors were liable for civil penalties under the Resource Conservation and Recovery Act (“RCRA”); and on behalf of BLM that the debtors were liable for reclamation of land owned by the United States that MAGCORP used in connection with its operations.  Finally, the United States on behalf of BLM sought to recover from the debtors unpaid rent due in connection with a federal right-of-way and compensation for unpermitted removal of minerals from federal land. 

The settlement agreement filed in Manhattan Bankruptcy Court today substantially resolves these proofs of claim and, among other things, provides substantial funding for the remediation of the US Magnesium Site and affected federal land.  Pursuant to the agreement, the United States will receive allowed bankruptcy claims in the amount of $82,135,812, which is expected to result in a distribution of approximately $28.2 million dollars to fund remediation at the US Magnesium Site or reclamation of federal land used by MAGCORP in its operations, and more than $400,000 in compensation for natural resource damages, unpaid rent, and the unpermitted removal of minerals from federal land.  The agreement also secures the commitment of the current operator of the magnesium production facility, US Magnesium LLC, and its parent entities, to use more than $5.8 million that they are recovering from the debtors for environmental activities at the US Magnesium Site. 

The settlement agreement will be lodged with the Bankruptcy Court for a period of at least 30 days before it is submitted for the Court’s approval, to provide public notice and to afford members of the public the opportunity to comment on the settlement agreement.

Mr. Berman thanked the Environment and Natural Resources Division of the U.S. Department of Justice, EPA, DOI and the State of Utah for their assistance in this case.