FOR IMMEDIATE RELEASE                                         ENR
TUESDAY, AUGUST 12, 1997                           (202) 514-2008
                                               TDD (202) 514-1888

         TWO RAIL COMPANIES AGREE TO COMPLETE $25 MILLION
                CLEAN UP OF INDIANA SUPERFUND SITE


     Washington, D.C. -- Pennsylvania-based Consolidated Rail
Corporation and Ohio-based Penn Central Corporation today agreed
to complete an estimated $25 million clean up of hazardous
chemicals that have contaminated soil and groundwater at the
Conrail railyard and surrounding areas in Elkhart, Indiana. 
   
     Under the agreement, lodged today in U.S. District Court in
South Bend, Indiana, the two companies will finish cleaning up
the site under government supervision, and reimburse the United
States for more than $7 million in cleanup costs that the
government already has spent.

     The Environmental Protection Agency was initially alerted to
potential contamination coming from the site when a number of
drinking water wells in the area showed the presence of several
hazardous substances, including carbon tetrachloride,
trichloroethylene, and trichloroethane, all of which are
suspected carcinogens.  As part of the cleanup, businesses and
homes in the area are being provided with an alternate water
supply.

     "I'm very pleased that these companies finally stepped up to
the plate and accepted their responsibility for the contamination
at this site," said Lois Schiffer, Assistant Attorney General in
charge of the Justice Department's Environment and Natural
Resources Division.  "This case demonstrates our commitment to
ensure that those who cause pollution, clean it up."

     "EPA has worked closely with the community over the last
several years, especially with Citizens' League for Environmental
Action Now, and is pleased there will be a safe source of
drinking water for all households and businesses near the site,"
said EPA Acting Regional Administrator David A. Ullrich. 
"Although the final phases of the cleanup will be carried out by
the rail companies, EPA will continue to monitor their activities
to make sure that they meet their commitments and protect public
health."

     The agreement announced today will settle the government's
claims against the two companies under the Comprehensive
Environmental Response, Compensation and Liability Act, also
known as the Superfund law.  The parties will continue to
litigate against each other to determine their respective shares
of the cleanup.

     Penn Central, a former railroad company now owned by Ohio-
based American Premier Underwriters, owned and operated the
railyard until 1976, when ownership and operation of the site was
transferred to Conrail.  The railyard is used as a classification
yard where train cars are inventoried and routed to points around
the country.  Two other rail companies, CSX and Norfolk Southern,
recently agreed to purchase Conrail, and divide the company
between themselves.  The purchase of Conrail will not affect
completion of the cleanup activities.

     The proposed settlement will be published in the Federal
Register, and the government will then accept public comment on
the settlement for thirty days.   Comments should be addressed to
the U.S. Department of Justice, Environment and Natural Resources
Division, Washington, D.C. 20530.
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