Guide Corp. to pay state

INDIANAPOLIS -- "We caught the big fish," Gov. Frank O'Bannon said in announcing a $13.9 million settlement with Guide Corporation over the White River fish kill.\nGuide, based in Anderson, has agreed to plead guilty to seven counts of violating the Clean Water Act to settle criminal charges. The misdemeanor counts of criminal negligence allege that the automotive parts maker released 1.6 million gallons of tainted wastewater in December of 1999 into the White River, killing more than 5 million fish.\nU.S. Attorney Tim Morrison said a toxic chemical Guide used routinely to treat metal-laden waste-waters at the plant had been used in excess as the plant rushed to finish a project before Christmas break. \nGuide would normally use 20 to 60 gallons of the chemical -- HMP-2000 -- to treat wastewater. State and federal officials allege that Guide used more 2,000 gallons in one instance that December before wastes were released to Anderson sewers.\nGuide will pay $1.96 million in criminal fines and forfeit another $1.96 million in assets. \n"We have sent the message to would-be polluters that we will not tolerate abuse of our precious national resources," O'Bannon said at a press conference on the bank of the White River in downtown Indianapolis. "We've sent the message that we will vigorously pursue restitution and penalties against those who fail to heed our warning."\nIf a federal judge accepts the terms of the settlement, Guide will also fork over $10 million to settle state and federal lawsuits. Of the $10 million, $6 million will be placed in a state trust fund to pay for the cleanup and restocking of the river.\nThe Indiana Department of Natural Resources has stocked more than 500,000 bass, bluegills, catfish and crappie into the river in the past year. Additional restocking is planned for the fall.\nThe state has already blown through $2 million in cleanup and investigative costs. It hired private lawyers specializing in environmental law, jacking up expenses.\n"It is the Guide Corporation -- not the Hoosier taxpayer -- that will foot the bill for improving the White River and for the legal work it took to reach this conclusion," O'Bannon said.\nIn February, Vehicle Lightning Inc. purchased Guide, assuming its liabilities. The company hopes to reach a fair and quick resolution, according to a press release.\n"It is an important step in resolving this matter and allows Guide Corporation and its employees to focus all their energy on the future," said Steve Murray, executive vice president of human resources. "The resolution of this suit is the first step in resolving the other legal actions that the new management is committed to concluding."\nA class action lawsuit filed by property owners along the river is still pending. And Morrison said the federal government would continue to investigate the fish kill.\nUnder the terms of the settlement, Guide will remain under intense watch from federal officials during a five-year probationary period. It will turn over all of its files and submit to comprehensive environmental audits. \nIf Guide violates the terms of the probation, Morrison said it will face another $1.96 million penalty.\nIt might take as long as three months to entirely resolve the case, Morrison said.