Legal
Ohio Seeks $17M from USG to Cover Highway Sinkhole Stabilization Costs
Long-running dispute over a state highway allegedly damaged by subsidence of underground gypsum mines

Sinkholes have emerged for years in State Road 2 in northern Ohio, located over former underground gypsum mines belonging to USG.
Photo courtesy of the Ohio Attorney General
In a case stemming back to the 1960s, the Ohio Attorney General is suing the United States Gypsum Co. (USG) to recover nearly $17 million spent stabilizing a state roadway in northern Ohio threatened by sinkholes that developed above the company’s former underground gypsum mines and to prevent more from emerging.
The lawsuit filed on behalf of the Ohio Dept. of Transportation alleges that USG, contrary to a purchase agreement, failed to maintain the mines, which caused dangerous sinkholes to develop near State Route 2 in Ottawa County, located near the shore of Lake Erie.
The case’s history traces back to 1965 when ODOT purchased the land from USG to build State Route 2, which would later become a much-traveled route used by motorists to reach lakeside tourist destinations including Marblehead, Kelley’s Island and Cedar Point.
The lawsuit alleges that, under the purchase agreement, USG agreed to maintain the integrity of the mines to ensure the highway’s stability and motorists’ safety. Instead, the lawsuit charges that USG filed a Quit Claim Deed in 1977, withdrawing its commitment to maintain the mines and did not notify ODOT about the filing or seek the department’s approval.
As decades passed, the lawsuit alleges that USG continued to discuss with ODOT the potential of earth movement along the route resulting from sinkholes but, by the early 2000s, again without notifying ODOT, the company filed paperwork to legally cease its offer to monitor the highway.
With concerns continuing about the potential of the roadway collapsing, ODOT conducted a $20 million project in 2013 that injected grout into the flooded underground gypsum tunnels in order to stabilize them and safeguard the roadway.
Regarding the lawsuit, Ohio Attorney General Dave Yost said in a video posted last month that "it's beyond our understanding why this company is forcing us to go to court to keep their promises."
USG confirmed in a statement that it has seen a copy of the lawsuit.
"From our reading of the complaint, the Ohio Dept. of Transportation is only seeking to recover legacy costs that were incurred by it for work on State Road 2 that occurred a decade or more ago," the statement reads. "The complaint does not allege any imminent risk to public safety."
It added that the company takes safety seriously.
"USG monitors and conducts regular inspections of its closed mine areas. USG will fully respond to the state's allegations in courts," the company stated.
The company continues to operate a construction materials business and a factory in Ottawa County .
Hannah Hundley, public information officer for the attorney general, declined to comment to ENR on the timing of the lawsuit given the length of the dispute, citing pending litigation.