GKN launches $100 million chemical spill fund

A toxic chemical tank incident in May forced the evacuation of thousands of homes in Garden Grove, a crisis that has now led to a formal financial compensation program.

GKN Aerospace announced on Tuesday that it will offer $100 million in claims to residents and business owners in Garden Grove and Orange County who were impacted by the emergency. The company stated that individuals affected between May 21 and May 26 can verify their eligibility and submit their claims through its website.

The emergency began on May 21 when authorities issued a five-day evacuation order due to the threat of an explosion and a toxic cloud. During this period, between 13,000 and 17,000 homes were evacuated. The affected properties fell within a possible explosion radius that was made public, showing areas likely to be impacted by a blast and the resulting chemical cloud.

The claims program is available to those who faced mandatory evacuation orders issued by the City of Garden Grove and the Orange County Fire Authority. According to GKN Aerospace, eligibility extends to people who lived in the evacuation zone during the five-day period or immediately before the evacuation. Businesses operating in the affected area during the same timeframe also qualify for the program.

Applicants must provide proof of residence to participate. The program covers costs for lodging, meals, transportation, lost wages, and business interruption. The company indicated that there are limits to the reimbursement, including a cap of $300 per night for lodging, for up to five nights per residence.

This claims program was launched two weeks after GKN Aerospace reached a $125 million conciliation agreement with the Orange County government. The civil case settlement included the newly launched claims program as well as more than $8.4 million for emergency response and mitigation costs. The agreement also requires a safety and monitoring plan, with supervision of GKN operations by an external expert for at least the next seven years. A judge approved this plan last week.