Bethany Township officials will be moving forward with plans to try to obtain funds from a Velsicol insurance policy for the cleanup of a toxic site within the township, according to Jane Keon, Pine River Task Force chair.

The township board unanimously approved the measure at its regular meeting on Tuesday, Dec. 8.

The site, referred to as the Smith Farm site, is a parcel of abandoned land bordered by State and Jackson Roads south of St. Louis. It was used as an industrial dumping site by Velsicol, Oxford Automotive and Alma Products for a number of years.

Years ago, Velsicol took out a $100 million insurance policy from American International Specialty Lines Insurance Co., a subsidiary of AIG. That policy, which is now held by AIG, expires Dec. 22.

The Task Force and Bethany Township are moving quickly to be able to sue for the cleanup before the policy expires.

Members of the Pine River Superfund Task Force contacted the environmental law firm of Olson, Bzdok and Howard out of Traverse City to review the case. The firm agreed to work on a contingency basis, minus a $1,500 retainer fee.

The Task Force had originally requested that Gratiot County enter into the suit for contamination at a second Gratiot County site – the county’s landfill. This would have enabled the cost to be split three ways. However after the County Board postponed a decision twice for further study, the township and Task Force decided to start the proceedings for the cleanup of the Smith Farm site without including the county landfill.

“Township officials asked a lot of very good questions,” Keon said. “They also wanted to express their disappointment that although the site had supposedly been cleaned, all the contaminants are still there, with just a lot of dirt piled on top.”

Keon said Michigan Department of Environmental Quality documents show that a chloride plume from the Smith Farm has migrated off the site.

“The DEQ has measured it, but they have no idea how deep it goes,” Keon said.

As part of the procedure for filing a claim on the policy, the Task Force has proposed hiring Michigan Consulting and Environmental out of Mount Pleasant to review the site.

Keon said the DEQ has given the firm permission to do the necessary soil borings for testing on the site. Bethany Township will be sharing the cost of the environmental assessment as well as the cost of the law firm in Traverse City with the Task Force.

Keon noted that Alma Products contributed money to the cleanup of the site in the early 1990s and the state has indicated the company has met their obligation for the cleanup.