It might be about two weeks before managers at the Everett Housing Authority know how the latest episode in a nearly century-old saga of contaminated land is going to play out.

By then, the situation surrounding the bankruptcy filing of Asarco might be clearer, said Darcy Walker, the smelter-site project manager for the Housing Authority.

The company, once known as American Smelting & Refining, ran a smelter on the property along East Marine View Drive until 1912.

In ensuing years, houses were built on the property, but contamination was discovered in 1990. The Housing Authority bought the property last year on the condition that Asarco use the money to pay for cleaning the land.

Work started this year, and a deal had been made this month for the Housing Authority to sell 3.2 acres of the site to Barclays North for redevelopment. But the $3.2 million sale was contingent on finishing the cleanup.

Then last Wednesday, Asarco filed for bankruptcy protection in Texas.

At first, Walker said, it looked as though the work could continue. But by the end of the day, bankruptcy attorneys had been instructed that as part of the filing, Asarco was to cease all operations.

That stopped the cleanup. It's uncertain what will happen next.

"It's still too early to tell," Walker said.

One possibility is that under the terms of the 2004 property sale, the Housing Authority wouldn't have to pay all of its $3.4 million purchase price if Asarco defaulted on the cleanup agreement, and it's possible the bankruptcy filing may qualify as a default, he said. That could free some money to continue the work.

The Everett cleanup is listed among the top 20 claims in the Asarco bankruptcy filing, The Associated Press reported, with the company's obligations in Washington state totaling $13 million. Asarco's cleanup debts nationwide were estimated at $1 billion.

Information from The Associated Press is included in this report. Peyton Whitely: 206-464-2259 or pwhitely@seattletimes.com