New Jersey is Dupont de Nemours, Inc. of Chemours Company. and Corteva, Inc. A large environmental settlement was reached with the company and resolved a wide range of legal claims related to PFAS pollution.
The total settlement amounts to $875 million, covering both local site contamination and wider contamination across the state.
The agreement, outlined in the proposed Judicial Consent Order (JCO), enters into a long-standing dispute over contamination from chemicals in manufacturing facilities and fire foam. It is also one of the largest environmental reconciliation in the state’s history.
Understanding the risks of PFAS contamination
PFAS (one person and polyfluoroalkyl substances) are a group of manufactured chemicals used in various industries for their heat, water and oil resistance properties.
These substances are common in non-stick cooking utensils, dirt-resistant clothing, especially fire-fighting foam.
Often called “eternal chemicals,” PFA is not broken by the environment or the human body.
As a result, they accumulate over time and are associated with many serious health issues, including cancer, hormonal destruction, liver damage, immune system problems, and reproductive effects.
PFA contamination is especially concerning drinking water and communities near industrial or military sites.
Once released into an environment, PFA is extremely difficult to remove, and long-term cleanups can be costly and technically challenging tasks.
Covered Sites and Scope of Settlement
The settlement resolves all claims of environmental damage from current and previous sales sites, including Chambers Works, Parlin, Pompton Lakes, and Repauno.
In addition to these four locations, the agreement addresses statewide PFAS contamination that does not link directly to the site, including contamination from aqueous membranes that form foams (AFFFs) used by firefighters.
A portion of the settlement ($16.5 million) is specifically allocated to claims not associated with the company’s industrial site. Of that, $4.125M is dedicated to contamination caused by AFFF.
Payment timeline and company contributions
Under the terms of the transaction, $875 million will be paid over 25 years and will begin by January 1, 2026.
The present value of these payments is estimated to be around $500 million, taking into account the discount rates established in the JCO.
Financial responsibility is divided among companies based on the pre-2021 memorandum of understanding.
Chemours pays 50%, which amounts to about $250 million. DuPont will be responsible for 35.5%, or about $177 million, while Corteva will donate 14.5%, or about $72 million.
Funding for future PFAS cleanups and repairs
To ensure long-term environmental restoration, the settlement includes provisions for sustainable financial support.
A Repair Funding Source (RFS) will be created for each of the four operating sites. This is supported by guaranteed bonds or similar financial instruments, ensuring that the funds remain available for continuous cleaning efforts.
Additionally, DuPont and Corteva will establish reserves that have reached a $475 million cap, in line with their respective cost sharing liabilities. The fund provides secondary financial security and is only accessible under the specific conditions outlined in the settlement.
These financial instruments do not represent immediate cash payments, but companies must maintain their bonds over time.
Chemours sells insurance rights to Dupont and Corteva
Another part of the contract involves the transfer of insurance rights. Dupont and Corteva will pay Chemours $150 million in exchange for their right to recovery of certain insurance related to PFAS claims.
Once that amount and fee are collected, Chemours will receive 50% of the additional insurance claim and add another layer of financial cooperation between the parties.
Next Steps
Before the settlement is finalized, the proposed judicial consent order must go through public notice and comment periods as required under New Jersey law. This is followed by the court reviewing and determining whether to approve the contract.
If approved, the settlement represents key achievements in efforts to address PFA pollution in New Jersey, ensuring safe funding for repairs and accountability from contaminants. It is also expected to serve as a model for other states that deal with similar environmental challenges.
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