General Financial Releases

Fact Sheet -- Redfield Site Lawsuit

ISSUE: Small amounts of 1,1-dichloroethene (1,1-DCE), a breakdown product of cleaning solvents and a chemical found in many common household products including plastic wrap, have been found above state action levels in the indoor air of about 350 homes in the vicinity of the Redfield site, 5800 E. Jewell Avenue, in southeast Denver. The 11-acre site is named after the riflescopes that were made there for many years.

ENVIRONMENTAL STANDARDS: The state of Colorado has set an "action level" – above which remediation is required – of 0.49 micrograms per cubic meter of air. In August 2002, the U.S. Environmental Protection Agency (EPA) issued a reassessment of potential human health effects from exposure to 1,1-DCE. It concluded that evidence that breathing 1,1-DCE could cause cancer in humans was too weak to warrant any quantitative estimate. The only guideline it proposed for concentrations in air was 200 micrograms per cubic meter – more than 400 times higher than the Colorado's 0.49-action level. The Colorado Department of Public Health and Environment (CDPHE) is now considering the new information presented by EPA.

HEALTH IMPACTS: None. There are no studies demonstrating health risk to humans from low-level exposure to 1,1-DCE, such as at the air levels found in the neighborhood homes. While occupational studies have shown that concentrations of 1,1-DCE at very high levels –between 15,000 and 99,000 micrograms per cubic meter of air– can cause mucus irritation and headache, the highest concentration found in any house in adjacent neighborhoods was 131 micrograms per cubic meter of air. This is 100 to 750 times lower that that, and nearly one-third lower than the EPA protective level of 200 micrograms per cubic meter of air.

BACKGROUND: Between 1957 and 1993, manufacturing processes at the Redfield site included the use of chlorinated solvents for cleaning and degreasing operations. Some of these solvents entered the soil beneath the site, especially beneath a piece of equipment called a vapor degreaser. These, and chlorinated solvents from sites other than Redfield, entered the groundwater that flows under the plant and under adjacent neighborhoods. Other sites include the Colorado Department of Transportation facility, immediately adjacent to the Redfield site, and a nearby dry cleaning establishment.

BROWN'S INVOLVEMENT IN THE SITE: Brown Group Retail bought the 11-acre site and the company operating on it, Outdoor Sports Industries (OSI), in 1979. Brown operated at the site until 1984, when Brown sold the business to Redfield Rifle Scopes, Inc. Brown retained ownership of the property.

DISCOVERY OF THE ISSUE: In 1993, as a prelude to the possible sale of the property, Brown engaged environmental consultants to do a routine investigation. They discovered chlorinated solvents in the soil under the vapor degreaser. After a subsequent investigation showed that the solvents were present in the groundwater beneath the degreaser, Brown advised Redfield Rifle Scopes, in accordance with state law, to notify the Colorado Department of Health and Redfield did so. In early 1998, Brown tested off-site and determined that solvents had moved into the groundwater under adjacent neighborhoods. It is important to note: groundwater in the area is not used for drinking water.

BROWN'S RESPONSE TO DATE: Since 1998 when elevated levels of 1,1-DCE were discovered in offsite groundwater, Brown Group Retail has, under the supervision and approval of the CDPHE:

• Notified the neighbors and kept them fully informed (organized and paid for 15 public meetings with presentations by environmental experts, medical experts and CDPHE officials);
• Tested the indoor air in more than 700 homes over or near the affected groundwater;
• Installed more than 350 air ventilation systems in homes that were above the state action level (Brown also pays for residents' electricity to run these systems);
• Designed and installed a CDPHE-approved groundwater treatment and containment system to contain and clean the groundwater moving under and off the Redfield Site. Since this system was installed, in March 2000, off-site migration of water containing chlorinated solvents has stopped, and millions of gallons of clean water have been pumped into the offsite groundwater. A second ground water remediation system is currently being designed to further speed remediation.
• Installed more than 70 groundwater monitoring wells in the neighborhood;
• Hired a doctor with expertise in toxicology to be available to any resident who wanted to consult with him (confidentially) about any related concerns, at Brown's expense;
• Launched a public website (www.redfieldsite.org), with detailed information on the remediation, EPA reports and CDPHE reports. Note: All information is reviewed and approved by the CDPHE before posting to the site;
• Spent or committed to spend $12 million on remediation to date.

THE RESULT OF BROWN'S ACTIONS: Brown has stopped contaminated groundwater from the Redfield site from entering adjacent neighborhoods; in all homes where work has been completed and access granted, levels of 1,1-DCE have been reduced to below the state's strict action level for indoor air. Brown anticipates that with the additional groundwater remediation the State has recently approved, solvent concentration levels will decrease to below State standards. .

THE PLAINTIFFS' ALLEGATION: The suit does not claim that any one has suffered any personal injury or illness as a result of the situation. It calls for damages for remediation; alleged diminished property values; and loss of use and enjoyment of residents' homes. Note: More than 100 neighbors have opted out (chosen not to be part of) the lawsuit.

BROWN'S POSITION: Environmental experts, hired by Brown, have completed the indoor air testing of all homes above the affected groundwater where access has been granted, and has installed indoor air ventilation systems where concentrations exceed the State's action level. Brown continues to pay for and undertake verification monitoring to ensure levels remain below the state's "action level." The company has stopped contaminated water from entering the neighborhood through installation of a groundwater containment and treatment system in 2000 around the north and east boundary of the Redfield Site.
Since Brown's plan for the offsite groundwater remediation has already been approved by the CDPHE, and work is under way, it is highly unlikely that the plaintiff-requested "remediation damages" would actually be used for that purpose. There is abundant evidence that property values in the neighborhood have been unaffected and are no different from values in comparable neighborhoods.

Despite the fact Brown only operated the business at the Redfield site for 5 of the 41 years the building was used for industrial manufacturing, the company is the only entity (besides state regulators) that has worked to resolve the issue in the surrounding neighborhoods. A number of other operators at the Redfield site contributed to contamination, as have other surrounding facilities, such as the Colorado Department of Transportation. None of these other parties has assisted with this remediation.

SUPPORT FOR BROWN'S POSITION: Neighbors, elected officials, and even The Denver Post have publicly recognized the work Brown has done.

Barbara Fallon, the president of the Cook Park Neighborhood Association, wrote in a Jan. 21, 2001 letter to the editor of The Denver Post:

"… the neighbors and the Brown Group have communicated for more than three years regarding the problem in public forums. At the same time, the Brown Group began testing in the neighborhood and initiated remediation of homes showing elevated levels of vapors from groundwater coming from the former Redfield plant."

On Jan. 20, 2002, Ms Fallon and Diane Wolta, president of the Virginia Village/Ellis Community Association Board, wrote to The Post:

"This series is the third time the Cook Park neighborhood has been featured on the front page of the Denver Post for a problem that already has been solved. The Brown Group has remediated all homes with elevated levels of vapors from the groundwater.

"Additionally, chemicals are no longer seeping into the neighborhood. With many possible sources of contamination in modern life, Cook Park neighbors appreciate the information gained from five years of study on the Redfield issue along with the opportunity to track and remediate the problem."

"Although the solvent leaks had been going on for years, once the seepage became known, Brown, which still owns the property, has acted like a responsible corporate citizen by taking such remedial steps as installing ventilators in homes that have pollution greater than health standards."

"But talk to some of the neighbors, and you realize they are dealing with a 21st century problem: a newly discovered type of environmental contamination. Even more surprising, however, is the fact that the residents, the local councilwoman, the state health department and the polluter have nothing but good things to say about each other. This is not exactly a case that calls for Erin Brockovich."