Saturday, July 21, 2007

Cleanup Continues on NYC Steam Explosion

Robert Stolarik for The New York TimesThe driver of the tow truck that found itself enveloped in the steam explosion, Greg McCullough, is still in critical condition with burns to 80% of his body. He was put in an induced coma while doctors treat his severe burns at Cornell-Weill's burn unit. He's got an extremely tough uphill battle and I wish him and his family all the best of luck and prayers for a recovery. His passenger, Eileen Barry, suffered minor injuries and her evacuation from the scene was captured by a New York Post photographer.

Later this morning, a crane will remove the tow truck sitting in the crater caused by the steam explosion at 41st and Lexington. That will enable Con Ed workers to begin assessing the damage wrought to the utilities in the area and begin repairs. Con Ed continues to maintain that air samples have not found any airborne asbestos but soil and ground samples have found trace levels of the mineral. Workers are wearing protective garb while cleaning up the area.

Cleanup continues around the site, and businesses are getting hit hard by the restrictions on traffic in the area. Expect Con Ed to get hit hard in return - a flood of lawsuits should be expected by businesses disrupted by the explosion.
The losses could run into tens of millions of dollars, economists say. Thousands of people have been shut out of offices and shops near the explosion at Lexington Avenue and 41st Street since Wednesday.

Con Edison, which owns the underground steam system, has said it would pay for damage, including replacing clothing worn by people who were showered with mud and debris. Chris Olert, a Con Ed spokesman, said the company also agreed to pay for all of the cleanup, both in buildings and on the streets and sidewalk. He said the company did not have an estimate of the total cost.

Con Ed has not indicated whether it will reimburse businesses for financial losses caused by the closing of the “frozen zone” around the explosion site. Mr. Olert said that businesses could submit requests for reimbursement, and that the company’s lawyers would review them on a case-by-case basis. The company’s critics, however, are bracing for a fight, contending that Con Ed was likely to try to limit its payments.

Because the explosion involved the steam system, Con Edison is not bound by state regulations on reimbursements in the case of electricity failures, according to James Denn, a spokesman for the Public Service Commission in Albany. (This month, the maximum reimbursement under state law for economic damages caused by electrical failures rose to $9,000 from $7,000 for businesses.)
Some businesses may lose hundreds of thousands of dollars in revenues as a result, and the low cost loans will do little to help them recoup their losses.

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