Skip to main content

Gallatin Steel Co., a joint venture mini-mill owned by two Canadian steel producers, has agreed to pay a fine of about $1.4-million to the U.S. Environmental Protection Agency (EPA) and clean up its emissions.

Gallatin, owned by Dofasco Inc. and Co-Steel Inc., has been locked in legal battles with the EPA and a family neighbouring its steel mill on the banks of the Ohio River in western Kentucky.

The steel maker agreed this week to a court settlement called a consent decree that is expected to settle the battle with the U.S. government agency.

"Gallatin Steel maintains it has not violated the Clean Air Act as alleged by the U.S. EPA, but has agreed to the terms of the consent decree in order to avoid costly and protracted litigation over these issues," the company said in a statement.

The consent decree required Ghent, Ky.-based Gallatin to reduce emissions from the electric arc furnace and from the scrap area behind its melt shop.

The plan to reduce emissions from the electric arc furnace will cost about $1.5-million (U.S.), Gallatin spokeswoman Cathy Hanley said yesterday.

A sprinkler system to control emissions from the scrap area has already been installed, she said.

Gallatin complies with U.S. emissions rules, she added.

But the Ellis family, who live nearby, are going ahead with their lawsuit against Gallatin, their lawyer, Jeffrey Sanders, said yesterday.

They have filed suit against Gallatin and a company called Harsco Corp., which handles the slag generated by the steel company, a mini-mill that uses electricity to melt steel scrap and turn it back into usable steel.

The family complains of health and dust-related problems from the companies' activities.

Report on Business Company Snapshots are available for:
DOFASCO INC. CO-STEEL INC.

Interact with The Globe