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State settles with Agro over cleanup money misuse

By: Beth Kevit, [email protected]//September 12, 2013//

State settles with Agro over cleanup money misuse

By: Beth Kevit, [email protected]//September 12, 2013//

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The state has settled a more than $1 million dispute with Agro Distribution LLC, its owner and their insurers over alleged misuse of environmental cleanup money.

Agro, based in Inver Grove Heights , Minn., twice applied for and received state Agricultural Chemical Cleanup Program Fund money to remedy a nitrogen leak at its former fertilizer center in Edgerton, according to a news release. Agro received the maximum amount of reimbursement from the program, which is intended to help pay for environmental cleanup not covered by insurance, according to court documents. However, Agro’s insurance company also reimbursed the company for the cleanup.

Agro must reimburse the ACCP fund $550,000, according to the release. Under state statute, if a company receives ACCP money it knows it is not eligible for, it is barred from receiving ACCP money for five years. Therefore, Agro and its owner must repay an additional $224,000 they received for other cleanup projects after the Edgerton contamination.

Agro and the other defendants did not admit fault under the settlement.

The case was prosecuted by Assistant Attorney General F. Mark Bromley.

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