Attorney General Philip T. McLaughlin and Department of Environmental Services Commissioner Robert T. Varney announced today that Velcro USA, Inc. of Manchester has agreed to settle the largest pollution claim in the State's history for violations of state air pollution laws. The settlement, which was reached with the full cooperation of Velcro, was approved by the Hillsborough County Superior Court yesterday, and totals $700,000 in the form of cash payments and pollution reductions from Velcro's Brown Avenue, Manchester plant.

The State alleged in a lawsuit filed on July 6 in Superior Court, along with the settlement documents, that Velcro had violated numerous and significant requirements contained in the state rules and air permits for Velcro's plant operations. The alleged violations include Velcro's failure to properly operate pollution control equipment designed to reduce emissions of nitrogen oxides, or "NOx," which is a precursor to ozone, or smog. The suit also alleges that Velcro did not meet state permit requirements for air toxics emissions, opacity and control of NOx and volatile organic compounds, or "VOCs," another precursor to smog.

Under the terms of the consent decree approved by the court, Velcro agreed to pay $175,000 in cash to the State and to several charitable organizations. The remaining $525,000 is to be paid in the form of "supplemental environmental projects" at two nonprofit organizations and at Velcro's plant that will significantly reduce air emissions from Velcro's Manchester facility. In particular, Velcro has agreed to reduce its NOx emissions beyond current regulatory requirements, from 117 tons per year to 40 tons per year by June 30, 2003, with significant reductions occurring yearly. Velcro has also agreed to spend $100,000 on the purchase and installation of a "selective catalytic reduction" system that will further reduce NOx emissions from the plant.

Attorney General McLaughlin said "This case represents the serious attention that this office gives to violations of New Hampshire's air pollution control laws. The magnitude of the civil penalty to be paid by Velcro reflects the seriousness of the violations, but the settlement also reflects Velcro's willingness to work with the State to be proactive in fashioning a remedy where the end result is cleaner air for our citizens."

"We're especially pleased that this settlement will lead to Velcro substantially reducing its releases of nitrogen oxides," said DES Commissioner Varney. He noted, "The benefit of eliminating over 75 tons of NOx is equivalent to taking about 4,000 vehicles, with their associated tailpipe emissions, off of New Hampshire's roadways, improving New Hampshire's air quality and the health of its citizens."

For further information, please contact Senior Assistant Attorney General Maureen D. Smith at (603) 271-3679.