By DEBORAH GERTZ HUSAR

Herald-Whig Staff Writer

DALLAS CITY, Ill. -- Dallas City residents faced a choice last week to accept a reduced insurance settlement for claims from a carbon black spill in June or pursue the matter in court.

Alan Sladek, claims regional manager for National Liability and Fire Insurance Co., outlined the options in a town meeting and individual meetings last week with 262 residents in hopes of bringing closure to $1.3 million in claims against Chandler Trucking.

Sladek said it was "a complex case" involving the investigation of "many avenues" in reaching settlements.

Thirty thousand pounds of carbon black -- a nontoxic extremely fine, powdery substance that can irritate eyes and cause temporary respiratory problems -- spilled June 13 along a stretch of Ill. 9 including Dallas City and Lomax.

The spill occurred when a semi-trailer owned by Chandler Trucking of Monmouth backed into a concrete barrier used in road construction. The trailer was punctured, and the carbon black spilled along the highway, affecting more than 300 homes.

"Chandler Trucking had a $1 million liability policy," said Kathy Dougherty, Hancock County Emergency and Disaster Services public information officer who handled media questions about the spill. "In essence, residents were being asked to accept 70 percent of their claim."

Residents could take the settlement, and sign a statement releasing the insurance company from further claims, or seek a legal judgment against the trucking company for a settlement that could range from nothing to 100 percent of the claim.

Residents "had a lot of mixed feelings. A lot wanted to put this all behind them. Some were still highly irritated," Dougherty said, and prior to the meetings, "no one had received any money from anybody."

Residents accepting the 70 percent settlement should have received a check at their meeting with Sladek.

HMHTTC Response Inc., the company which cleaned up the spill, also was asked to take a reduced payment for its work.

-- dhusar@whig.com/221-3379