THURSDAY, AUGUST 24, 1995                           (202)514-2008
                                               TDD: (202)514-1888
                                                  GWEN BROWN, EPA


WASHINGTON, D.C. --  A hazardous waste recycler near Allentown,
Pennsylvania has agreed to pay a $5.65 million penalty and to
spend another $30-40 million dollars to reduce harmful releases
of lead and cadmium into the soil, air and water, the Department
of Justice and the Environmental Protection Agency announced

     The settlement, filed in Harrisburg, would upgrade the
facility to limit release of contaminated dust and curb drainage
from the Palmerton, Pa., processing facility of Horsehead
Industries and Horsehead Resources Development Company which the
government said had contaminated the nearby Aquashicola Creek and
the Lehigh River.

     The agreement resolves a lawsuit filed by the United States
and Pennsylvania's Department of Environmental Protection against
Horsehead which alleged that the company violated the Clean Air
Act, Clean Water Act and Resource Conservation and Recovery Act. 

     "This settlement reflects the commitment of this
administration and the state of Pennsylvania to insuring a
healthy living environment for the people of Palmerton," said
Lois Schiffer, Assistant Attorney General in charge of the
Environment and Natural Resources Division.  "It is a great
example of government and industry working together to eliminate
environmental contamination."

     "Today's agreement will do much to improve the environment
in Palmerton, and ultimately, the health of its citizens," said
Michael McCabe, EPA's Regional Administrator.  "It represents the
culmination of an impressive four-year cooperative effort between
the United States and the Pennsylvania Department of
Environmental Protection to resolve some very serious
environmental issues for that area."

     Steven A. Herman, EPA's Assistant Administrator for
Enforcement and Compliance

 Assurance said, "This agreement demonstrates the government's
determination to develop a comprehensive settlement which
requires the company to improve its environmental practices in
order to assure protection of environmental and public health."

     The consent decree provides that Horsehead will upgrade and
change its ongoing
operations to limit dust and visible stack emissions from its
processing operations.  A visible air emissions monitoring system
will be installed so that state environmental officials can
monitor the emissions via an online computer system.  This system
will allow them to have instant access to air monitoring data,
and be aware of any problems as they occur.

     Additionally, Horsehead will construct buildings to house
materials that contain hazardous substances while those materials
await processing.  All outdoor storage piles will be removed, and
those sites will be closed consistent with the Resource
Conservation and Recovery Act.  Under the terms of the agreement,
Horsehead will also apply for a recycling permit from the
Department of Environmental Protection to extract, and resell
zinc-containing materials from hazardous wastes received at the

     Finally, control measures will be put in place to reduce
run-off of contaminated water from the facility which includes a
2.5 mile long cinder bank that was generated over the life of the