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October 10, 2001
Naperville, Ill. - The mercury lawsuit brought by the Illinois Attorney General and the State's Attorneys of Cook, DuPage and Will Counties was settled and approved today by Judge Paul B. Biebel, Jr. in Cook County Circuit Court.
Nicor Gas also announced it has entered into an agreement to settle the class action mercury lawsuit and filed the agreement with the court today. Judge Biebel, who presided over both cases, must now review and approve the settlement reached between Nicor Gas and the class action attorneys.
Under the terms of the two settlements, Nicor will pay $4.1 million over the next five years.
"We are pleased to have been able to reach settlements in these matters that we believe are fair and in the best interest of all the parties," said Russ M. Strobel, senior vice president, general counsel for Nicor.
The company's mercury program was initiated after it was discovered that, in certain instances, mercury was spilled in residences during the removal of old-style gas regulators, which were installed in homes prior to 1961. Nicor Gas has called on about 300,000 homes during the inspection and repair program.
During the program, Nicor worked with a Task Force comprised of the Illinois Attorney General, the three County State's Attorneys, the Illinois Environmental Protection Agency, Illinois Department of Public Health, U.S. Environmental Protection Agency and the federal Agency for Toxic Substance and Disease Registry, under the supervision of Judge Biebel.
"Throughout the mercury program, our first priority has always been the health and safety of our customers," Strobel said.
Settlement Details
In the government settlement, Nicor will reimburse the state and county governments approximately $400,000 for costs associated with monitoring its mercury inspection and repair program and $1.85 million to fund Supplemental Environmental Programs, which will support environmental projects throughout Illinois. Nicor will pay no fines or penalties and, as has been the case throughout the mercury program, its customers will not pay any of these costs.
In the class action lawsuit, Nicor Gas has agreed to pay $400 for each of approximately 1,050 homes in which mercury was found. It will also pay a total of $1 million to the households where residents had to temporarily relocate while the homes were cleaned and repaired. This is in addition to the reimbursement that Nicor Gas already paid to all such homeowners to cover all costs associated with the program, which included the replacement of furniture and household goods and out-of-pocket costs for hotel stays, food, clothing and transportation. Nicor Gas also agreed to pay up to $450,000 to the class action lawyers, which is subject to Judge Biebel's approval. Finally, Nicor Gas will continue to provide medical screening to anyone who may have been exposed to mercury from its equipment, as it has done since the beginning of the program.
Nicor Gas serves two million customers in a service territory that encompasses most of the northern third of Illinois, excluding the city of Chicago. The company has provided reliable natural gas services for more than 45 years. Nicor Gas is a subsidiary of Nicor, Inc. (NYSE: GAS.). | 
