COMMISSION 
AGENDA MEMORANDUM                Item No.       4d 
ACTION ITEM                   Date of Meeting     July 25, 2017 
DATE:    July 11, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Elizabeth Black, Senior Port Counsel 
SUBJECT:  Reichhold Bankruptcy Settlement 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to enter into a settlement
agreement substantially similar to the draft attached in Exhibit 1 with Reichhold Holdings US,
Inc. (Reichhold), to settle claims in bankruptcy related to the cleanup of the Lower Duwamish
Waterway. 
EXECUTIVE SUMMARY 
Reichhold is a potentially responsible party liable for contamination on the Lower Duwamish
Waterway  (LDW). Reich hold  declared bankruptcy in 2014. As part of the bankruptcy
proceeding, there is an opportunity for the Port to recover a small portion of its past costs
(approximately $25,000) related to cleanup of contamination for which Reichhold was
responsible. Commission approval is required because the estimated amount of the Port's claim
is greater than $300,000. 
JUSTIFICATION 
The bankruptcy proceeding is the Port's only opportunity to recover past costs directly from
Reichhold. Because the bankruptcy estate is paying claims at only 5 cents on the dollar, the
benefits of settlement at this time outweigh the costs of pursuing the Port's claim further. 
DETAILS 
Further details were presented by counsel in executive session on July 11, 2017. A draft 
settlement agreement is attached. 
FINANCIAL IMPLICATIONS 
Revenue: Approximately $25,000. 
ATTACHMENTS TO THIS REQUEST 
(1)   Draft Settlement Agreement 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. __4d__                    Page 2 of 2 
Meeting Date: July 25, 2017 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Briefing with counsel in executive session on July 11, 2017. 

















Template revised September 22, 2016; format updates October 19, 2016.