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Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson — General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />November 14, 2023 <br />5.11 <br />SUBJECT: <br />PFAS Litigation Settlement <br />ACTION REQUESTED: <br />Motion to Direct Staff to Remain in Class and File Claim Forms <br />Motion to Engage Legal Counsel and Approve Retainer Agreement <br />BACKGROUND: <br />ERMU has received notice of a class action settlement of various claims against chemical <br />companies for the proliferation of Perfluoroalkyl and polyfluoroalkyl substances (PFAS) in public <br />water systems. This settlement arises out of multi -party, multi -district litigation venued in <br />South Carolina. The Settling Defendants have agreed to pay $1,185,000,000.00, subject to final <br />settlement approval of the Court. <br />If an eligible water system (such as ERMU) does not opt out by the deadlines (Dec. 4, 2023, for <br />DuPont; Dec. 11, 2023, for 3M), it will automatically be included in the settlements and will be <br />precluded from bringing its own lawsuit against DuPont or 3M for PFAS damages. <br />DISCUSSION: <br />Eligible water systems with detected PFAS in at least one source and that do not opt out will <br />have to submit a claims form to receive their share of the settlement fund. For entities that did <br />not opt out of the settlement, they will have only 60 days after final approval of the settlement <br />to submit their claims form otherwise they will not receive payment if they are a phase one <br />eligible claimant (utilities that have detected PFAS before the settlement date). There are also <br />phase two eligible claimants which are public water systems that have not detected PFAS <br />before the settlement date but are either required to test drinking water for PFAS <br />contamination pursuant to Unregulated Contaminant Monitoring Rule 5 or by serving more <br />than 3,300 people according to the Safe Drinking Water Information System. <br />An eligible entity that opts out of the class settlement will not be eligible to receive any <br />payment from this settlement. However, a system that opts out will not be precluded from <br />bringing a lawsuit against DuPont or 3M for damages caused by PFAS contamination. Parties <br />that do not wish to be a Settlement Class Member, and do not want to participate in the <br />Settlement, may opt out by completing and mailing a notice of intention to opt -out. <br />Page Iof2 <br />126 <br />