Two state senators say an Argentinian company is trying to dodge its Superfund obligations by declaring bankruptcy.
Lawmakers are urging state and federal agencies to investigate an Argentinian company they say is attempting to skirt its share of the $1.38 billion cleanup of the polluted Passaic River.
Sen. Christopher "Kip" Bateman (R-Somerset) and Sen. Bob Smith (D-Middlesex) said Argentina's state-owned oil company, YPF S.A, declared bankruptcy for one of its subsidiaries, Maxus Energy Corp -- the company responsible for dumping carcinogenic toxins into the river, including dioxin, a byproduct of Agent Orange that was used during the Vietnam War.
The June bankruptcy is "an apparent attempt to avoid paying the company's environmental liabilities," the lawmakers wrote in their February resolution. The resolution said YPF's actions could set a dangerous precedent for other companies to dodge its Superfund obligations.
The Senate and Assembly environmental committees are holding a joint meeting Tuesday morning in Lyndhurst to discuss the situation.
With its history of manufacturing, New Jersey has more Superfund sites than any other state in the country. Superfund sites are heavily polluted areas that require long-term cleanup efforts.
Maxus, previously known as the Diamond Alkali Company, operated a plant along Lister Avenue in Newark starting in the 1940s, producing agricultural chemicals that contaminated the water and led to prohibitions of fish and crab consumption.
Last March, the U.S. Environmental Protection Agency announced a $1.38 billion cleanup plan calling on 100 companies that contributed to the contaminated to pay for it.
It's not clear how much YPF SA would have to pay in the cleanup plan.
A call to the bankruptcy attorney representing Maxus was not immediately returned Friday.
The bi-artisan resolution, however, says YPF "stripped billions of dollars in assets out of Maxus, leaving it unable to perform its Superfund obligations."
Karen Yi may be reached at kyi@njadvancemedia.com. Follow her on Twitter at @karen_yi or on Facebook.