Chemours Co. said its stock jumped 6% on Thursday after announcing a settlement with the State of North Carolina and 11 local entities to resolve a set of claims related to per- and polyfluoroalkyl substances (PFAS) and other historical discharges.
The settlement is intended to resolve litigation brought by the state and the local governments tied to alleged releases from the Fayetteville Works facility, as well as certain claims of PFAS contamination alleged to be unrelated to that site, including contamination associated with the use of aqueous film forming foam.
Under the terms of the agreement, the total payments will amount to $455 million spread over 15 years. Chemours will be responsible for 50% of the payments. On a net present value basis, the company said its share is approximately $180 million. Chemours reported that these expected obligations are covered by accruals already recorded on its books.
The company also disclosed that its share of anticipated payments in the coming 12 months is roughly $50 million. DuPont de Nemours and Corteva will cover the remaining 50% of the settlement payments, in line with a memorandum of understanding the three companies executed in January 2021.
The settlement text recognizes progress made under a 2019 Consent Order between Chemours and North Carolina. That progress includes reductions in PFAS emissions at the Fayetteville Works site and steps taken to mitigate off-site impacts affecting neighboring communities.
Part of the agreement details procedures to address remaining responsibilities related to off-site areas. Those procedures include implementation of programs designed to provide and protect drinking water for affected areas, according to the company statement.
Of the $455 million total, $18 million is attributed specifically to alleged PFAS contamination that the settlement describes as unrelated to Fayetteville Works. The pact is conditioned on the entry of dismissals in the litigations covered by the agreement.
The 11 local entities participating in the settlement are: Bladen County, Brunswick County, Columbus County, Cumberland County, New Hanover County, Robeson County, Sampson County, the Town of Wrightsville Beach, the City of Lumberton, the Village of Bald Head Island, and the Lower Cape Fear Water and Sewer Authority.
Context and corporate allocation
The agreement splits responsibility for the total payment obligations equally among Chemours, DuPont de Nemours and Corteva, reflecting their earlier allocation framework. Chemours emphasized that its expected near-term cash burden is limited by the accruals it has already recorded, while the broader settlement framework defines procedures intended to manage outstanding off-site and drinking water-related obligations.
The settlement must still be formalized through legal dismissals of the covered claims to be fully effective.