Cascade Corp and Boeing Co have agreed to pay USD6.2 million to the City of Portland, Oregon, to settle litigation arising from groundwater contamination allegations.

Portland had sought USD20.5 million in damages in the US District Court, and Cascade and Boeing offered a USD1 million settlement at the start of the trial, which began on October 21. The joint settlement, which is pending council approval, was announced on November 6.

The dispute centred around Cascade and Boeing's Portland plants, which used trichloroethylene to degrease industrial products. The factories dumped chemical solvent onto the ground, which had been permitted in the past.

Contamination of groundwater under the properties was detected in 1986, and became a critical issue during a drought in 1992. Cascade and Boeing have spent USD50 million implementing a rehabilitation plan over the last five years.

The city, claiming lost water sales and related expenses, sued Cascade and Boeing in 1999, originally claiming up to USD32.5 million before the claim was finalised. Cascade, which produces forklift attachments, forks and accessories, said its portion of the settlement was USD3.6 million. Insurance policies covered a small portion of Cascade's liability, a statement said.

"Cascade's clean-up efforts to date have been very successful, and we are well on track to meet the long-range schedule established in cooperation with the [state Department of Environmental Quality] for a complete and successful remediation," Cascade president Robert Warren said.