The Northern Virginia Daily

Article date: April 20, 1996

 Part of Avtex's ownership transferred in agreement

By: Diane Hartson

An agreement has been drafted that would transfer ownership of a portion of the closed Avtex Fibers plant in Front Royal from the Environmental Protection Agency to the Warren County Redevelopment Corporation for reuse.

Corporation Chairman Frederick P. Foster said Friday that it will take about two or three months to "fine-tune" the document and have actual transfer of part of the plant, which is a federal Superfund site, take place.

Under the terms of the draft contract, the EPA pledges not to sue the corporation for any future or past contamination it had no responsibility for creating.

The corporation also agrees not to sue the EPA for "direct or indirect claims for reimbursement" under the Superfund law or make any claim against the federal government concerning remediation actions taken at the former rayon plant.

The contract requires that any future remediation actions by the EPA at the site not be interfered with and calls for the EPA to certify that the sections turned over to the corporation are remediated.

A state law that takes effect July 1 allows a "fresh start" at Superfund sites across the state by prohibiting holding future owners such as the corporation from being sued for past contamination. That legislation was introduced by Delegate Jay K. Katzen, R-Markham, at the corporation's request.

Although a similar federal bill introduced by 10th District Rep. Frank R. Wolf is still pending in Congress, Foster said the corporation is comfortable in moving forward with the agreement because "we're 99 percent insulated" from future legal problems by the state law.

Any lawsuit filed over the site would have to be made in state court and it would be covered by the state law, he said.

Foster said he hopes the transfer can take place by late summer, but said the agreement needs some work before it's signed.

He said he's concerned that the agreement, which was drafted by the EPA, refers to the property as a contaminated site. That would mean it wouldn't be covered by the state "fresh start" law, which refers to remediated sites.

The corporation also is awaiting agreements from the FMC Corp., a former owner of the plant, and the bankruptcy trustee who now controls it, not to involve the corporation in payments for past contamination found later.

Foster said those agreements are in the process of being drafted.

The corporation will be taking over 400,000 square feet of building space, including the plant's corporate offices and warehouses, the open grassy area up to and including the guardhouse and a parking lot across the street from the plant.

Local Economic Development Authority Director Stephen A. Heavener said having additional space to offer potential industries will be a boon, but he cannot market the Avtex plant until a determination is made as to what needs to be done to renovate the property and until the renovation is completed.