DOJ Proposes CERCLA Settlement With Congoleum, Liberty Mutual for $449K
Summary
The DOJ published notice of a proposed Settlement Agreement under CERCLA between the United States (on behalf of EPA) and Congoleum Corporation (n/k/a CC Oldco Corporation), Liberty Mutual Insurance Company, and the Liquidation Trust for Old Congoleum. The settlement grants the United States an allowed claim of $423,169.50 for the Henderson Road Superfund Site in Montgomery County, Pennsylvania, and an allowed claim of $26,154.91 for the Spectron, Inc. Superfund Site in Cecil County, Maryland. Liberty Mutual will pay the combined $449,324.41 in full. In exchange, the United States covenants not to sue Old Congoleum or the Liquidation Trust for claims under CERCLA Sections 106 and 107, and agrees not to seek insurance proceeds from Liberty Mutual for environmental claims at these sites. A 30-day public comment period is now open.
“The proposed Settlement Agreement grants the United States an allowed claim of $423,169.50 for the Henderson Road Site, and an allowed claim of $26,154.91 for the Spectron Site.”
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What changed
The DOJ published a Federal Register notice opening a 30-day public comment period on a proposed CERCLA settlement agreement involving Congoleum Corporation (in Chapter 11 bankruptcy) and its creditor Liberty Mutual Insurance Company. The settlement resolves EPA environmental cost claims at two named Superfund sites — the Henderson Road Site in Pennsylvania and the Spectron Site in Maryland — for a combined allowed claim of $449,324.41. The United States provides a covenant not to sue under CERCLA Sections 106 and 107 and releases Liberty Mutual from insurance obligations related to these sites.
Parties with potential environmental liability exposure, particularly in Superfund Site contexts, should monitor this settlement as a possible template for resolving CERCLA claims through bankruptcy trusts. Environmental insurers and companies with legacy contamination liabilities may find the covenant-not-to-sue structure relevant to their risk management. All public comments must be submitted within 30 days of the April 22, 2026 publication date.
Archived snapshot
Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Notice
Notice of Proposed Settlement Agreement Under the Comprehensive Environmental Response, Compensation, and Liability Act
A Notice by the Justice Department on 04/22/2026
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- Public Inspection Published Document: 2026-07765 (91 FR 21511) Document Headings ###### Department of Justice
On April 15, 2026, a proposed Settlement Agreement between the United States, on behalf of the Environmental Protection Agency (“EPA”), and Congoleum Corporation, n/k/a CC Oldco Corporation (“Old Congoleum”), Liberty Mutual Insurance Company (“Liberty Mutual”), and the Liquidation Trust for Old Congoleum (“Liquidating Trust”) was filed in the United States Bankruptcy Court for the District of New Jersey in the Chapter 11 case captioned, In re: Congoleum Corporation, Case No.: 20-18488 (MBK) (Dkt. No. 827-1).
On July 13, 2020, Old Congoleum filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. Two proofs of claim were filed in the Chapter 11 case on behalf of the EPA asserting that Old Congoleum is responsible pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) for costs incurred and to be incurred by the United States relating to the releases and threats of releases of hazardous substances at or in connection with: (1) the Henderson Road Superfund Site in Upper Merion Township, Montgomery County, Pennsylvania (“Henderson Road Site”); and (2) the Spectron, Inc. Superfund Site, in Cecil County, Maryland (“Spectron Site”). The proposed Settlement Agreement grants the United States an allowed claim of $423,169.50 for the Henderson Road Site, and an allowed claim of $26,154.91 for the Spectron Site. The allowed claims shall be paid in full by Liberty Mutual. In exchange for this payment, the United States covenants not to sue Old Congoleum or the Liquidation Trust for claims relating to the Henderson Site or the Spectron Site pursuant to Section 106 or 107 of CERCLA, 42 U.S.C. 9606 or 9607, and the United States agrees not to seek from Liberty Mutual any insurance proceeds under certain policies for environmental claims relating to the Henderson Site or the Spectron Site.
The publication of this notice opens a period for public comment on the proposed Settlement Agreement. Comments should be addressed to the Assistant Attorney General, Environment and Natural Resources Division, and should refer to In re: Congoleum Corporation, D.J. Ref. No.: 90-11-3-12407. All comments must be submitted no later than thirty (30) days after the publication date of this notice. Comments may be submitted either by email or by mail:
| To submit comments: | Send them to: |
|---|---|
| By email | pubcomment-ees.enrd@usdoj.gov. |
| By mail | Assistant Attorney General, U.S. DOJ—ENRD, P.O. Box 7611, Washington, D.C. 20044-7611. |
Any comments submitted in writing may be filed by the United States in whole or in part on the public court docket without notice to the commenter.
During the public comment period, the Settlement Agreement may be examined and downloaded at this Justice Department website: https://www.justice.gov/enrd/consent-decrees. If you require assistance accessing Settlement Agreement, you may request assistance by email or by mail to the addresses provided above for submitting comments.
Jason A. Dunn,
Assistant Section Chief, Environmental Enforcement Section, Environment and Natural Resources Division.
[FR Doc. 2026-07765 Filed 4-21-26; 8:45 am]
BILLING CODE 4410-15-P
Published Document: 2026-07765 (91 FR 21511)
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