Bank Agrees To $29M Settlement For White Swan Toxic Cleanup, Wall

WALL, NJ — Bank of America, which became owner of the White Swan cleaners Superfund site in 2004, has agreed to a $29 million government settlement to pay for cleanup and ongoing monitoring of the site, the federal Environmental Protection Agency announced.

The Environmental Protection Agency (EPA) on Monday explained details of the proposed settlement with Bank of America - considered the legally responsible party - to address its part of the White Swan Cleaners/Sun Cleaners groundwater contamination site in Wall.

Nearly 20 years ago, the EPA found that two former dry cleaning operations (White Swan Cleaners and Sun Cleaners) were sources for volatile organic compound (VOC) contamination in soil and in groundwater in the area.

The dry cleaners businesses operated from around 1960 to 1991, the EPA has said.

The area is bounded on the west by Route 35, on the south by Judas Creek, on the north by Hannabrand Brook and on the east by the Atlantic Ocean.

The contaminated groundwater extends as far north as Hannabrand Brook and Wreck Pond and as far south as Judas Creek and Stockton Lake, according to the EPA.

The White Swan property has been cleaned and is no longer a source of groundwater contamination. The Sun property is in the process of being cleaned and levels of soil contamination are far lower than they were a decade ago, the EPA has said.

The agency recently updated the public on the status of the site cleanup at a meeting March 21.

A 'significant step'

Under the proposed agreement, the bank will be required to fund and perform vapor intrusion and groundwater cleanup work at the White Swan site at an estimated cost of $29 million.

In 2018, EPA also oversaw Bank of America’s removal of contaminated soil from the White Swan property. Cleanup of the Sun Cleaners property, which is not related to the White Swan property, is being funded by EPA, the agency has said.

"With this settlement EPA is holding Bank of America accountable for its share of the cleanup at the White Swan site," said Regional Administrator Lisa F. Garcia. " After years of investigation and cleanup efforts, this is a significant step towards resolving the contamination issues at the site for the benefit of the community, the environment, and public health."

The state Department of Environmental Protection also praised the settlement.

The two agencies, it said "are committed to protecting the health of those who live and work in the vicinity of the White Swan Cleaners/Sun Cleaners site,” New Jersey Commissioner of Environmental Protection Shawn M. LaTourette said.

The agencies have partnered to test indoor air at "hundreds of business and residential properties and installed ventilation systems on dozens with vapor intrusion concerns.

"This settlement with Bank of America ensures that long term cleanup, including remediation of contaminated groundwater and future vapor mitigation work, will be funded by the responsible party, not by the taxpayers," the agencies said.

Bank of America became legally responsible for the site when it bought the White Swan property through a series of bank mergers and acquisitions in 2004.

Here are some of the settlement details:

• Bank of America also will reimburse EPA for certain aspects of its cleanup work, paying $10.8 million, and pay up to $1.5 million for future EPA oversight costs.
• As part of the agreement, Bank of America will construct and then run the groundwater pump and treatment system for four years to capture and clean the most highly contaminated groundwater at the site.
• The company will pay up to a total of $6.5 million to the State of New Jersey to settle its liability for cleanup and removal costs, to voluntarily resolve its liability for natural resource damages (NRD), and to address long-term operational needs of the treatment system.
• This amount includes $3.7 million for cleanup costs and $2.8 million set aside in an escrow account for any future groundwater system operation and maintenance or added vapor intrusion work needed after the State takes over the cleanup.

Vapor intrusion occurs when volatile organic compounds (VOCs) from contaminated soil and groundwater seep into buildings, potentially exposing occupants to harmful chemicals, the EPA said in a statement.

Site background

EPA added the site to the National Priorities List (NPL) in 2004. In the course of the cleanup, EPA and the New Jersey Department of Environmental Protection (NJDEP) have installed several indoor air ventilation systems after conducting indoor air testing on residential and commercial properties.

Since the source areas have been "effectively removed," according to the agency, the EPA has seen a substantial decrease in the groundwater contamination levels, the agency said recently.

Residences over the area of contamination are using a public/secure water source for potable water, the agency has said.

Residents can read EPA's more detailed background on activities at the site on the township website here.

The proposed consent decree, which has been filed in the U.S. Federal District Court of New Jersey, is subject to a 60-day comment period. The Department of Justice and EPA will evaluate the comments and decide whether to proceed and then, if appropriate, seek final approval by the court.

For more information, to view the proposed consent decree and to give comments, visit: https://www.justice.gov/enrd/consent-decrees.

For additional background, visit the White Swan Cleaners/Sun Cleaners Area Ground Water Contamination Superfund site profile page.