A school was built on the site, and later a middle-class residential district was built on land adjacent to the site. The construction broke through the clay seal containing the waste. In 1968, Hooker Chemical was purchased by Occidental. In 1978, residents became concerned about unusual health issues in the region, including high rates of cancer and birth defects. This subsequently became a national news story, and in 1980, president Jimmy Carter declared a federal emergency in the area. Residents were eventually relocated, and the company paid $129 million in restitution.