A $125 million settlement has been reached with GKN Aerospace Transparency Systems Inc., operators of a plastics manufacturing plant in Garden Grove, following a chemical leak in May that necessitated the evacuation of thousands of residents and businesses. The settlement, announced by Orange County District Attorney Todd Spitzer on Monday, addresses restitution for those impacted and requires judicial approval from an Orange County Superior Court judge.
Under the terms of the proposed agreement, up to $100 million will be allocated for approximately 50,000 residents who were compelled to evacuate their homes and businesses due to the hazardous materials emergency. Additionally, first responders who managed the incident during Memorial Day weekend are slated to receive $8,471,385.50 in reimbursement for their efforts. The company has also committed to a seven-year period of monitoring for the plant, which includes oversight by an independent expert to ensure compliance with applicable laws and regulations. GKN Aerospace will pay $1.4 million to cover the costs associated with this monitoring. The District Attorney's Office will receive $15 million in penalties under state law, designated for use in consumer protection enforcement initiatives.
The hazardous materials emergency commenced on May 21 at the GKN Aerospace facility located at 12122 Western Avenue. A leak was detected involving the cooling system of a 34,000-gallon chemical storage tank. This incident led to the forced evacuation of tens of thousands of residents across Garden Grove, the entire city of Stanton, and other nearby communities. The evacuations spanned several days over Memorial Day weekend as crews worked to neutralize a toxic chemical stored in the overheating tanks, which had prompted concerns of a potential explosion. Ultimately, a crack developed in the damaged tank, relieving the internal pressure and thereby eliminating the immediate risk of an explosion, according to the District Attorney's office.
District Attorney Todd Spitzer stated that his office collaborated with outside chemical safety experts to analyze the events of the incident. He also noted that GKN Aerospace fully cooperated with the investigation conducted by his office. The settlement follows a previous action taken by the county in July, when a letter was sent to the company demanding $4,071,305 in reimbursement for the resources expended in responding to the chemical leak.
While a settlement has been reached, the agreement's terms are contingent upon approval from an Orange County Superior Court judge. The next step in this process will involve presenting the settlement for judicial review.
