Arco to Pay $260 Million to Settle Pollution Suit

A federal judge in Great Falls, Mont., has approved a $260-million settlement between the state of Montana and Atlantic Richfield Co., ending 16 years of court battles. The case involves 100 years of pollution in the Upper Clark Fork River Basin from mining and smelter operations. Los Angeles-based Arco inherited the problems in the 1970s, when it acquired Anaconda Co. The 130-mile stretch from the headwaters of the Clark Fork River has been designated the largest Superfund cleanup site in the nation by the Environmental Protection Agency. Montana sued in 1983, seeking $765 million to restore the river basin to its condition before settlers began digging for gold, silver and copper in Butte. Arco shares fell $3.50 to close at $80.50 on the New York Stock Exchange.