About a dozen of the nation's largest oil companies agreed to pay $423 million in cash to settle litigation with 153 public water providers in 17 states that sued over groundwater contaminated by the gasoline additive MTBE
The local water providers will be compensated according to a formula based on MTBE levels and the size of wells. If MTBE is found to surpass the specified threshold at a given site during the next 30 years, defendants will pay 70% of the water-treatment cost for 10 years from the point of detection. Payments will end if the affected area is deemed MTBE-free for one year. At the end of the 10-year period, payments can be extended five more years if the water source still shows a certain level of contamination.
The affected community would be barred from suing over the contamination.
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There is more to the artical.
Basin is getting into MTBE removal I believe. Sounds like more business. Anybody know more?
Basin does not not have an MTBE removal technology. That is principally a GAC game. The principal companies in that area are Calgon, Severn Trent, and Siemens, and they have been doing it for years. They have the costs dialed in and it is a relatively low margin business in the water treatment world. Considerable infrastructure in the way of carbon trucks, vacuum equipment, etc., are necessary, which creates a significant barrier to entry for any newcomers. It is not likely BWTR could compete effectively in this arena if they decided to enter it.
They mentioned in the news about their joint venture with Rohm Haas that they would work to provide a slolution using resins if I read it right. They were sketchey, not real clear. At the last conference call someone asked about the drought in Ga. The guy said they did not have much to offer. But for Fla. they did have MTBE help. But did not elborate.