ARCO oil agrees to $832K settlement with Gloucester

TRENTON – An oil company that operated a facility out of Gloucester has agreed to an $832,000 remediation settlement with the city and the state’s Department of Environmental Protection, state officials said.

The Atlantic Richfield Company, ARCO, agreed to the settlement as part of ongoing efforts to restore the city of Gloucester’s Southport, according to the DEP. The oil company operated in only a section of the 120-acre tract of land along the Delaware River.

In 2008, DEP announced that Gloucester’s Southport was one of several land tracts in the state designated as a Brownfield Development Area, a term given to abandoned industrial or commercial sites deemed worthy of redevelopment.

A state DEP spokesman, Larry Hajna, said the settlement with ARCO came after large-scale remediation on the land in the 1990s. He explained the funds will be used for additional groundwater cleanup and some capping of old equipment.

Gloucester intends to redevelop the Southport into residential and commercial property, according to the DEP web site.

A large portion of the settlement – $700,000 – will go to Gloucester for the remediation effort and the rest will go to the DEP: $107,000 as partial reimbursement of a grant disbursed to Gloucester for the Hazardous Discharge Site Remediation Fund grant and $25,000 for payment to the Natural Resource Damages, according to the agreement. ARCO oil agrees to $832K settlement with Gloucester