Share “Settlement agreement reached in lawsuit...”

Settlement agreement reached in lawsuit for Blackwell residents over old smelter

BY ANN KELLEY Published: February 1, 2012

Blackwell Zinc Co. paid one of the best wages in Kay County before environmental problems and contamination concerns closed it in 1974. Now some residents here are entitled to one last payday — this time for damages caused by the smelter operation.

In January, Blackwell property owners received a 16-page letter notifying them that a nearly $119 million agreement has been reached in their class-action lawsuit. The settlement would allow for about $70 million in payments to landowners and for additional environmental cleanup.

The lawsuit was filed after 38 years of promises to clean up the site by larger companies that bought out Blackwell Zinc Co. The city of Blackwell in 2009, along with property owners, sued its current owner Arizona-based Freeport-McMoRan Cooper & Gold Inc., holding the company responsible for contamination to the groundwater supply and soil.

The city of Blackwell in February 2010 accepted a $54 million settlement from the company.

Attorneys in the lawsuit say about 4,000 property owners would receive checks for $500 to $7,000 if the settlement agreement in the class-action suit is approved by a judge in March. The first round of payments could go out as soon as June.

“If this settlement goes through, I think people in Blackwell can finally get the legacy of their town being a smelter community behind them,” plaintiffs' attorney Nelson Roach said.

Some call deal ‘a joke'

Not everyone is satisfied with the agreement.

Lawrence Self called the agreement “a joke,” and said numerous property owners plan to protest to the judge.

Self, 72, has had to cap a well on his property, because the state Department of Environmental Quality determined the underground water is polluted by the old zinc operation.

“The lawyers in the lawsuit are getting millions of dollars, and the people here are the ones who have had to live with it for all these years,” Self said. “There are a lot of unhappy people here in Blackwell.”

Ronnie Corn, 72, plans to consult his own attorney before he agrees to accept any settlement. Corn, of Broken Arrow, grew up in Blackwell. He owns nine rent houses there, and several of them had contaminated soil.

“I don't want to just take what they offer and end up getting the shaft,” Corn said.

Gone but not forgotten

A poster-size, black-and-white image of the zinc smelter hangs in Bob's Grill in downtown Blackwell. Most of the plant's buildings were torn down when it closed almost 40 years ago, but the lawsuit has kept it a frequent topic of conversation in the busy cafe.