3M settlement brings $850 million boost for water, natural resources projects

A lawsuit between the state and the 3M Company has been settled, but some lawmakers’ questions about it have not.

The two parties announced an agreement last week to settle the suit, filed in 2010, that alleged 3M’s use and development of perfluorochemicals had been contaminating drinking water since the 1950s.

Under terms of the agreement, an $850 million grant payment from 3M will be used to fund clean drinking water and natural resource projects. Grant trustees are the Pollution Control Agency and the Department of Natural Resources.

Officials from both elaborated on the settlement Thursday during a hearing of the House Environment and Natural Resources Policy and Finance Committee. They told lawmakers that improving the quality and quantity of drinking water in the east metro area is the top investment priority.

A majority of the funds, $720 million, will immediately be available to provide long-term solutions to restore natural resources and provide the area’s 157,000 residents and businesses with clean drinking water. Measures to do that include treating contaminated wells, connecting homes with private wells to municipal sources and providing alternative sources of drinking water.

The second grant spending priority is the enhancement of water resources, wildlife habitat and outdoor recreation in the affected areas, according to officials.

WATCH Full video of the March 1 environment and natural resources committee hearing

Rep. Mark Uglem (R-Champlin) asked what role a Feb. 7 report from the Department of Health, which stated that the chemicals caused no increase in the rates of cancer and low birth-weight babies, played in the settlement.

“I do think it is notable that we were in very serious settlement discussions prior to the release,” said Barb Naramore, DNR assistant commissioner. “I’m not really in a position to characterize how the Health Department’s report does or doesn’t relate to the other expert reports that were prepared as part of trial preparation.”

Rep. Dan Fabian (R-Roseau), the committee chair, pressed officials on whether they were aware of the findings in the Health Department’s report prior to release, while settlement negotiations were ongoing.

“We did not see the report until it was released to the public” said Kirk Koudelka, MPCA assistant commissioner. “We had discussions with them and knew they were looking into the issue and reexamining their data to look at and compare to studies that were done by the [attorney general’s] consultants.”

Rep. Rick Hansen (DFL-South St. Paul) expressed disappointment that the eight-year lawsuit didn’t end in a trial.

“All of these discussions that we just had would’ve occurred in a courtroom,” Hansen said. “We would have had the public involved in what decisions were made by whom, when and why and where – both in the agencies and in the company … we could’ve had that battle of science in a courtroom. But we didn’t, so now we have this in front of us, $850 million, and I want to make sure we protect that for the people of Minnesota.”