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MPC Environmental Response Trust

Pascagoula, Mississippi

Trust Overview

Mississippi Phosphates Corporation (MPC) operated the site as an inorganic fertilizer production facility to manufacture diammonium phosphate fertilizer (DAP), on Bayou Cassotte in Pascagoula, MS.  Following MPC bankruptcy in 2014, the site’s phosphogypsum stacks (gyp stacks) were placed into the MPC Environmental Trust. These gyp stacks contain fertilizer production by-product and the Trustee team was originally responsible for managing the gyp stacks and the liquids on the property, including management/repairs of stormwater ponds, repairs to levees, and implementation/management of an in situ wastewater treatment plant. A Liquidation Trust originally held the manufacturing portion of the site, but after 5 years that property was transferred to the Environmental Trust to be overseen by the PathForward team.  At the time of transfer, the manufacturing facilities had become dilapidated and hazardous; at risk for collapse and uncontrolled release of contaminated liquids. The Trustee team’s responsibilities include resource procurement, contractor selection and management, US EPA/DOJ and MDEQ beneficiary reporting, other state and local agency interactions and communications, revenue creation, and marketing the property for sale/lease.

Accomplishments

While restricted by extremely limited funding, the Trust managed to:

  • Raise Trust revenue by liquidating salvageable heavy equipment and electrical assets remaining on the property

  • Creatively turned an unauthorized barge mooring into a contract that ended up generating approximately $800,000 for the Trust

  • Performed limited demolition of the Sulfuric Acid Plant, one the most at-risk facilities on the site

  • Navigated extensive and complicated sales negotiation including buyer, Debtor in Possession Lenders, federal and state agencies

  • Ultimately sold the manufacturing portion of the site for beneficial reuse, successfully transferring approximately $20MM in liability from the Trust

  • The Trust is in ongoing discussions to lease the gyp stacks for placement of solar panels and/or battery storage

Project News

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