IN OCTOBER 1997, EPA, REGION 5, CONDUCTED A MULTI-MEDIA INSPECTION AT THE INTEGRATED STEEL MILL OWNED AND OPERATED BY USS/KOBE STEEL COMPANY (USS/KOBE) LOCATED IN LORAIN, OHIO (THE FACILITY). DURING THE INSPECTION, U.S. EPA FOUND VIOLATIONS OF THE CLEAN AIR ACT, CLEAN WATER ACT AND THE RESOURCE CONSERVATION AND RECOVERY ACT. ON MARCH 18, 1999, U.S. EPA SUBMITTED A REFERRAL TO DOJ FOR THE VIOLATIONS FOUND AT THE FACILITY. EFFECTIVE AUGUST 13, 1999, THE TWO GENERAL PARTNERS CONSTITUTING USS/KOBE WERE MERGED INTO REPUBLIC TECHNOLOGIES INTERNATIONAL, LLC (REPUBLIC) AND CERTAIN ASSETS AT THE USS/KOBE FACILITY IN LORAIN, OHIO WERE SOLD TO LORAIN TUBULAR COMPANY LLC (LORAIN TUBULAR). LORAIN TUBULAR NOW OWNS THE SEAMLESS MILLS AND THE D-2 LANDFILL. REPUBLIC NOW OWNS THE OTHER FACILITIES, INCLUDING THE BLAST FURNACES. ACCORDING TO A DUN & BRADSTREET REPORT DATED AUGUST 28, 2001, REPUBLIC FILED A VOLUNATARY PETITION FOR BANKRUPTCY UNDER CHAPTER 11 OF THE U.S. BANKRUPTCY CODE ON APRIL 2, 2001 IN THE U.S. BANKRUPTCY COURT IN AKRON, OHIO, DOCKET NO. 01-51117. THE DUN & BRADSTREET REPORT ALSO STATES THE REPUBLIC ASSUMED THE LIABILITIES OF USS/KOBE.
USEPA, USDOJ AND THE STATE OF OHIO HAVE REACHED AN AGREEMENT ON ALLEGED VIOLATIONS. US STEEL WILL SPEND $294,500 ON A SEP TO REMOVE UP TO 13 PCB TRANSFORMERS. IN ADDITION, US STEEL WILL PAY A CIVIL PENALTY OF $100,025, HALF OF WHICH WILL GO TO THE STATE OF OHIO.