Metalclad
Encyclopedia
Metalclad is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 landfill
Landfill
A landfill site , is a site for the disposal of waste materials by burial and is the oldest form of waste treatment...

 management firm.

Guadalcázar landfill

Metalclad bought a landfill site in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

's city of Guadalcázar
Guadalcázar, San Luis Potosí
Guadalcázar is a small, municipal town located in the Mexican state of San Luis Potosí.-History:The town was one of the many colonies founded by Spanish explorer Juan Cordoba de Guadalcazar. In the decades following its creation, Guadalcazar flourished as a wealthy town. Its main exports were...

 from a Mexican company Coterin in 1993. Coterin had planned to develop a hazardous waste
Hazardous waste
A hazardous waste is waste that poses substantial or potential threats to public health or the environment. According to the U.S. environmental laws hazardous wastes fall into two major categories: characteristic wastes and listed wastes.Characteristic hazardous wastes are materials that are known...

 landfill on the site but were unable to secure the necessary permits from the local government. Metalclad were able to obtain land use permits from the Mexican federal government, but local governments did not respond to their application for a building permit, neither allowing nor denying the site. The mayor of the city was opposed to the landfill because of the amount of toxic waste in it and the threat to the local water supply.

In 1992, before Metalclad purchased the site, a review by Mexican environmental officials found that over twenty thousand tons of hazardous waste had been improperly dumped. The officials agreed to allow the dump to continue processing and to issue permits on the condition that Metalclad clean up the improperly dumped materials.

In 1993, Metalclad purchased the landfill. Locals complained that they were getting sick, developing aggressive diseases, and that their water was polluted. The main water well was about 60 yards from the stream flowing through the location where Metalclad was dumping its material. A 1994 environmental study by commissioned by the new governor found that the dump was appropriately sited (located) and could continue operations.

In 1995, the Mexican Secretariat of the Environment and Natural Resources authorized the operations of the landfill with the condition that Metalclad agree to clean up the improperly disposed hazardous materials. Local authorities then denied the building permit. A court case determined that the permit denial meant that Metalclad was required to cease operating the site.

In 1997, Metalclad sued the Mexican Government for damages under Chapter 11 of NAFTA for $90 million and was awarded $16.7 million. This award was later reduced by $1.1 million to $15.6 million, by review in the courts of British Columbia (the jurisdiction where the NAFTA hearing was held) due to a recalculation of the applicable interest period.
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