Lafarge North America Inc. which operates a cement and aggregate plant at 5400 West Marginal Way has agreed to enter into a settlement agreement, announced today, with the U.S. Department of Justice (DOJ), the U.S. Environmental Protection Agency (EPA) and 12 states to resolve claims arising under the Clean Air Act for historic emissions of nitrogen oxides and sulfur dioxides. The settlement addresses all of Lafarge’s active cement manufacturing plants in the United States.

The settlement is the first of its kind in the cement sector and is consistent with settlements the DOJ and EPA have obtained in other industry sectors, including electric generation and petroleum refining. The settlement represents for Lafarge a complete and expeditious resolution of issues under the Clean Air Act which Lafarge has sought to address in a proactive and cooperative manner with the DOJ and EPA.

Portions of the 1977 Clean Air Act require companies to obtain pre-construction permits if a large facility is upgraded or modified through
certain physical or operational changes. The settlement arises out of DOJ’s and EPA’s belief that one or more Lafarge cement plants made historic modifications without necessary permit review. Under the terms of the settlement, Lafarge will pay a civil penalty of approximately $5 million and will make significant emission reductions of nitrogen oxides (NOx) and sulfur dioxides (SO2) through the installation of additional pollution control equipment and other measures.

Sylvain Garnaud, president of Lafarge North America’s Cement Division stated: “Lafarge North America remains firm in its belief that it has
operated its plants in an environmentally responsible manner and in compliance with the requirements of the Clean Air Act. That said, we also firmly believe that industry leaders like Lafarge have to work with local, state and federal authorities to find solutions to the most challenging problems. Agreements like this one, and the actions we will undertake pursuant to this agreement, demonstrate that we want our plants to continue to minimize emissions to the atmosphere as much as possible.”

Craig Campbell, vice president of environment and public affairs for Lafarge North America’s Cement Division stated: “Every day we are looking for and identifying opportunities to improve our environmental performance in ways that exceed regulatory requirements and guidelines. We look forward to working closely with local, state and federal governments to implement the enhancements described in the agreement.”