Arkansas is set to receive at least $32 million—and potentially up to $80 million—as part of a settlement with Monsanto over claims that its industrial chemicals, now banned, caused environmental contamination. State Attorney General Tim Griffin announced the agreement Friday, which also includes Monsanto’s affiliates, Pharmacia LLC and Solutia, Inc.
The total payout to Arkansas will depend on the outcome of separate, ongoing litigation. “I am pleased that this case is resolved and that Monsanto is doing right by Arkansans,” Griffin said in a news release. He noted that although the company ceased manufacturing the chemicals, known as PCBs, in the late 1970s before a federal ban took effect in 1979, the substances had circulated for nearly half a century.
PCBs, or polychlorinated biphenyls, are compounds historically used as coolants and lubricants in electrical equipment. They have been connected to harmful effects on aquatic life and humans when present in waterways. Monsanto was the sole U.S. manufacturer of PCBs from the 1930s through the 1970s.
The settlement funds Arkansas receives will be restricted for specific use, Griffin said, and will be allocated to projects that improve water quality in the state.
The agreement with Arkansas is part of a series of settlements announced this week by the Dallas-based law firm Baron & Budd. Similar settlements were disclosed with Arizona, Hawaii, and Mississippi, and multiple other states have reached comparable resolutions in recent months.
Monsanto is now owned by Bayer. A message seeking comment from Bayer on Friday afternoon was not immediately returned.