The gulf oil catastrophe took yet another turn on Wednesday with the EPA now facing a lawsuit over its decision to use oil dispersants -- or chemicals used to break oil into tiny droplets.
According to the Center for Biological Diversity, the organization filing the lawsuit, the effects of using large quantities of dispersants and injecting them into very deep water have never been studied.
They also say the chemical is more harmful to some seabirds than oil; and it can harm sea turtles' ability to breathe and digest food.
The suit is against the EPA for using the chemical without first ensuring it would not harm endangered species and their habitats.
In a live interview Nalco - the maker of the dispersant - tells Fast Money "this product has been used for over 15 years all around the world; it’s safe and it works."
In fact, Nalco CEO J. Erik Fyrwald tells us the dispersant being used in the gulf is "more than 20 times less toxic than leading dishwashing liquids."
He also tells us emergency responders decide if dispersants should be used and if so, which should be used. Nalco does not proactively sell the product.
What else must you know about these developments? Get all the details from J. Erik Fyrwald, chairman and CEO of Nalco.
Watch the video now!
*You can find our interview with Frywald about 6 minutes into this video clip.
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Trader disclosure: On June 2, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Terranova Owns (SWN), (GLD), (IPSU), (RSX), (PFE), (TER), (APA), (AXP), (BMO), (BBY), (DIS), (XCO), (AAPL), (CVS), (IPI), (TEVA), (FXB); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT); Kelly Owns (FXE) Calls; Kelly Owns (IBM) Calls; Kelly Owns (STD) Calls; Kelly Owns (NBG) Calls; Jon Najarian Owns (GS), (JPM), (CAM), (BP); Finerman’s Firm Owns (AAPL); Finerman Owns (BAC); Finerman’s Firm Owns (BAC); Finerman Owns (BBY); Finerman’s Firm Owns (BBY); Finerman Owns (BP) Calls; Finerman’s Firm Owns (GOOG); Finerman’s Firm Owns (GS) Calls; Finerman Owns (HPQ); Finerman’s Firm Owns (HPQ); Finerman Owns (JPM) Calls; Finerman’s Firm Owns (JPM); Finerman Owns (RIG) Call, Puts & Stock
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