PERRINE V. DU PONT DE NEMOURS AND COMPANY SETTLEMENT
Below, please find a summary of Settlement milestones for October 2013:
During the month, much was accomplished in carrying out both the Medical Monitoring Program and the Property Clean-Up Program, after timely beginning on November 1, 2011.
A. GENERAL MATTERS
In February, the Court approved the Settlement’s engagement agreement with Dixon, Hughes, Goodman, LLP, the 2011 Outside Auditor, for this same firm to provide 2012 Financial Statement outside audit and 2012 tax return review services for the Two Funds under the same budget. This work began in March and was completed in September, and the audit report was provided to the Finance Committee in October. We scheduled our next quarterly Finance Committee meeting for November 19, 2013, when the 2012 audit report will be reviewed, as well as the Settlement financial results for the period ended September 30, 2013.
B. MEDICAL MONITORING PROGRAM
Important Medical Monitoring Program (the “Program”) milestones were accomplished in October.
As October came to a close, we were on schedule to begin the second round of testing on December 1, 2013. In October, the Medical Monitoring Claimants were mailed volume two of our newsletter, The Medical Monitor, which, in part, alerted them to the second round of testing. A Claimant second mail-out, to begin the testing scheduling process, will go out in November.
After finalizing the list of Verified Medical Monitoring Registrants in July 2012, with there being 5,890, and following Court-approval of a final $55 dividend to the Verified Medical Monitoring Registrants, we issued the final dividends in August 2012, and in October we continued to mail to a better address payments we received back in the mail due to a changed address, and to replace dividend checks lost in the mail. We are preparing a Bar Date Order, for Court review, declaring all remaining uncashed dividends void.
C. PROPERTY CLEAN-UP PROGRAM
There are 1,155 Property Clean-Up Registration claims, with no additional claims being allowed due to the Court Bar Date Order signed in June.
By Order dated May 1, 2012, the Court selected NCM as the clean-up contractor, and as September came to a close NCM had completed remediating 101 parcels of soil (Zone 1A only) of the 229 parcels signed up (44% complete) and 255 houses of the 989 signed up (25.5% complete). In November 2012, soil remediation for the year came to a close, due to weather, and was restarted in August 2013.
Unlike in some clean-up programs, soil and houses are retested for heavy metals contamination after NCM reports that they have been remediated. If they are still contaminated, NCM must remediate them further at NCM’s expense. Under additional soil remediation procedures approved by the Court (only Zone 1A has soil remediation), beginning with the 2013 soil remediation program, the consistency of the soil (not to have too much clay) will also be tested after the new soil is in place on the Claimant’s yard.
We continued to use a web-based confidential remediation database, being updated by the Settlement, NCM and CORE (the post-remediation testing company) on a real-time basis. We began the 2013 remediation of the soil in August.
On June 4, 2012, we submitted to the Court for consideration a proposed First Addendum to the CORE Sampling Agreement, previously approved by the Court, allowing CORE to do the post clean-up sampling as NCM cleans up soil in Zone 1A and houses in the Class Area. By Order dated June 11, 2012, the Court-appointed CORE for this task, and CORE is conducting the post-remediation sampling.
Respecting soil, on March 5, 2013, NCM and the Settlement reached an agreement, subject to Court approval, to provide optional enhancement procedures for replacement soil installed in 2012, and supplemental testing procedures for replacement soil installed in 2013, to help ensure good replacement soil consistency. The Court heard this matter on April 5, and approved the optional procedures on April 22, 2013. On April 26, we held two town meetings with the claimants whose soil was replaced in 2012, explaining the optional procedures. Testing of soil installed in 2012 to verify it is of good consistency (not too much clay) began on May 20. In June, we received the soil consistency results for the approximately 25 2012 soil replacement properties tested, and 90% had too much clay, making them eligible for the optional enhancement procedures.
Due to this high failure rate, NCM and the Settlement agreed that all approximately 92 properties whose soil was remediated in 2012 are eligible for the optional soil enhancement procedures, without further testing, with NCM to pay 90% of the costs and the Settlement to pay 10%. The program began on July 8, 2013, and the first round of the soil enhancement procedures for the 74 participating properties was completed in August, and the second round was completed in October.
As October came to a close, soil remediation for the year was being completed, to commence again with the sod growing season, in the Spring of 2014.
D. ADDITIONAL MILESTONES
Through October 31, 2013, there have been approximately 14,064 telephone calls from Claimants to the Claims Office, and 6,910 Claims Office visits by Claimants.