Northern Illinois Gas Co. (Nicor Gas) has agreed to pay nearly $4.1 million for its role in mercury leaks and improper disposal over a 10-year period of some of its gas regulators that were replaced by the utility in its service area. The agreement, approved by Cook County Circuit Court Judge Paul P. Biebel, was reached on Wednesday between Nicor Gas and the Illinois attorney general and the state’s attorneys of Cook, DuPage and Will counties.

Under the agreement, the Nicor Inc. subsidiary will pay $1.85 million over the next four years to fund various environmental projects of the state and affected counties. Nicor’s first installment of $370,000 will be paid within the next 30 days. It also will reimburse the state $400,000 for the Illinois Environmental Protection Agency’s costs in monitoring Nicor Gas’s removal and remedial action in response to the mercury releases first reported to authorities in July 2000 after a contractor hired by Nicor replaced a gas meter and regulator at a residence (see Daily GPI, Sept. 6, 2000).

In addition, Nicor Gas will pay $400 for each of the homes in which mercury was found and will pay about $1 million to residents of homes who had to temporarily relocate while the homes were cleaned and repaired. Nicor Gas also will pay up to $450,000 to the class action lawyers, subject to Biebel’s approval, and will provide medical screening to anyone who may have been exposed to mercury from its equipment.

Court documents revealed that as the meters were replaced, mercury would be exposed and spilled on basement floors and, in some cases, unknowingly tracked throughout residences by the occupants.

“Nicor has come to terms on what I believe is a fair settlement,” said Illinois Attorney General Jim Ryan. “After it became clear there was a potential for a real public health threat, Nicor got down to business with us and others to address the situation.”

The six-count complaint against the Naperville, IL-based utility sought remedies that included identifying all of the homes serviced by Nicor that contained mercury regulators as well as notifying customers. The lawsuit also named Henkels & McCoy Inc. of Blue Bell, PA and Northern Pipeline Construction Co. of Maple Park, IL, two contractors hired by Nicor for its gas meter replacement program.

Under the preliminary injunction entered by Biebel in September 2000, Nicor Gas tested the air in more than 157,000 homes in its service area. The air tests indicated 1,068 homes showed some degree of mercury contamination. Nicor Gas also found mercury contamination at some industrial and commercial sites, 19 Nicor-owned service centers, 118 Nicor Gas vehicles and seven transmission stations, according to Ryan.

Ryan said his office would use its share of the settlement to continue environmental protection activities throughout the state. The counties involved will use their share for childhood lead poisoning prevention programs, community outreach and groundwater monitoring.

“We are pleased to have been able to reach settlements in these matters that we believe are fair and in the best interest of the parties,” said Russ M. Strobel, Nicor’s senior vice president and general counsel. “Throughout the mercury program, our first priority has always been the health and safety of our customers.”

Nicor Gas serves two million customers in a service territory that encompasses most of the northern third of Illinois, excluding Chicago.

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