Cascade Grain Settles $4M Contaminated Ethanol Claim

Law360, New York (June 6, 2012, 6:16 PM EDT) -- Bankrupt ethanol manufacturer Cascade Grain Products LLC on Tuesday settled a dispute with distributor Eco-Energy Inc. over insurance costs relating to millions of gallons of tainted ethanol that were put out to market but recalled over quality issues.

The settlement put an end to a battle that began with claims that Cascade Grain negligently refined and sold contaminated ethanol to Eco-Energy which, when mixed with existing ethanol tanks owned by Chevron Corp. and ConocoPhillips Co., contaminated the entire contents of the tanks.

In 2009, the company...
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