Corteva, Inc. and its subsidiary EIDP, Inc. have reached a settlement agreement with the State of North Carolina and various local subdivisions to resolve statewide claims and specific issues related to the Fayetteville Works site. The settlement also addresses obligations under the Chemours 2019 consent order with the North Carolina Department of Environmental Quality.
Under the terms of the agreement, the companies will collectively pay $455 million to the State of North Carolina and applicable state subdivisions over a period of 15 years. Corteva’s share of these payments is approximately $66 million. The settlement resolves claims for the companies and DuPont de Nemours, Inc. regarding historical discharges from the Fayetteville Works site.
In addition to the direct payments, the settlement requires Corteva and DuPont to guarantee Chemours’ share of the settlement payments. The companies are also required to establish a reserve fund, which may be accessed via a line of credit, letter of credit, or surety bond capped at $135 million. This reserve is intended for the State of North Carolina to use if Chemours does not comply with its NC Consent Order.
The agreement also clarifies the application of the January 2021 Memorandum of Understanding (MOU) among the companies. The aggregate settlement payments to North Carolina will be applied against the MOU’s $4 billion aggregate qualified spend cap in the amount of $210 million. This calculation uses the net present value of the payments, spread over 25 years using an 8% discount rate. The settlement payments to North Carolina and New Jersey will satisfy the parties’ future escrow contribution obligations under the MOU.
