GKN reaches $125 million deal over Garden Grove tank emergency

GKN Aerospace and Orange County District Attorney Todd Spitzer have reached a $125 million settlement agreement over a Garden Grove chemical tank emergency that forced about 50,000 residents to evacuate, Voice of OC reported.

The agreement could reimburse thousands of local households and repay emergency response costs, but it still needs approval from an Orange County Superior Court judge before it is finalized.

Voice of OC reported that the civil case was filed in Orange County Superior Court with a stipulated agreement between GKN Aerospace and the Orange County District Attorney’s Office. The agreement stems from a Memorial Day weekend hazmat incident involving a chemical tank at GKN’s Garden Grove facility.

According to Voice of OC, the incident forced about 50,000 Orange County residents from their homes before evacuation orders ended May 26, after the tank was stabilized. Fire officials had expected the tank to either leak or explode, Voice of OC reported.

The agreement includes a $100 million claims program for residents and businesses affected by the emergency, according to Voice of OC. The program is expected to reimburse roughly 13,000 to 17,000 households for hotel stays, meals, transportation and lost wages.

GKN also would pay nearly $8.5 million for emergency services that responded to the incident, plus $15 million in civil penalties, Voice of OC reported. Another $1.4 million would fund an outside organization to oversee operations and carry out a safety and monitoring plan for seven years.

Voice of OC reported that GKN had previously announced the $100 million claims program and said several class action lawsuits tied to the incident are still underway. GKN also plans to host an event about the claims program Oct. 27.

Until the court signs off, the settlement and claims process remain pending.