November 29, 1995

About $2 million worth of platinum that has been languishing in the Warren County Jail since it was seized by the state from the Avtex Fibers plant six years ago will be disposed of under an agreement worked out by the state and other parties claiming ownership, state officials say.

The state will receive 35 percent of the money garnered by the sale of the platinum, the Environmental Protection Agency will receive 15 percent and five insurance companies that lent money to Avtex before it closed its doors in November 1989 will share the remaining 50 percent, according to a summary of the proposed settlement drafted by the state Department of Environmental Quality.

Warren County Sheriff Lynn C. Armentrout seized 60,000 platinum and rhodium rayon spinning jets on behalf of the State Water Control Board, which was acting on a court-issued writ that gave the state the right to seize property toward owed debts. The seizure took place shortly after Avtex abruptly closed its plant following the revocation of its water discharge permit.

That action was taken by the state because Avtex had more than 2,000 violations of environmental laws. Avtex declared bankruptcy in February 1990.

The state's share of the sale of the platinum, based on a 1993 estimate of its value, will be about $700,000, the summary says.

Officials say proceeds the state will receive will be used to reimburse it for its share of the cleanup costs at the plant.

The plant is a Superfund site and, according to W. Michael McCabe, regional administrator for the EPA, Virginia has paid out about $700,000 of the $26.6 million Spent in the cleanup effort so far.

After Avtex fled for bankruptcy, the company's bankruptcy trustee sued Armentrout and the state, seeking return of the platinum and damages. Several other parties later joined that suit, including the five lenders, EPA and FMC Corp., which as a former owner of the site is responsible for some of the cleanup costs.

The water board is scheduled to act on the proposal on Dec. 12. The lenders and EPA also must approve the agreement.

The state has agreed to pay $20,000 to the county as reimbursement for storage of the metals.

Board of Supervisors Chairman Staige F. Miller Sr. said the county had sought between $65,000 and $70,000 for storing the platinum, but "any time you can get $20,000, it isn't bad. I like it."

The county had no out-of-pocket expenses, but because the platinum has been kept in a jail cell since 1989, the use of that cell was lost, as well as revenue the county could have made by renting the cell to other jurisdictions, he said.

Delegate Jay K. Katzen, R-Markham, said he has been working with the Department of Environmental Quality on the settlement and he is satisfied with the agreement as long as Armentrout and other county officials are happy with the amount of money expected to be paid for storage.

The rayon spinning jets are each about 3 inches in diameter and have about 3,000 holes in them, said former Avtex plant manager Eldon Campbell. Viscose, after being dipped in an acid bath, is pushed through the jets, creating yarn, he said.

Platinum and rhodium are used "so the acids won't attack them," he said.