Incorporated in 1977 in VA - The endowment, a nonprofit, independent corporation, came about as a result of a court order. In February 1977, in the United States District Court for the Eastern District of Virginia, Allied Chemical Corporation was fined $13.2 million for polluting the James River with the pesticide Kepone. With the approval of Judge Robert R. Merhige Jr., a portion of this fine ($8 million) was paid by Allied to fund the creation of Virginia Environmental Endowment for the purpose of improving the quality of Virginia's environment. Between 1981 and 1991, VEE received another $1.4 million in court settlements paid by the FMC Corporation, Bethlehem Steel Corporation, Wheeling-Pittsburgh Steel Corporation, IR International, Inc., and Hauni Richmond, Inc. The FMC funds expanded the Endowment's work in Virginia and beyond into the Kanawha River and Ohio River Valleys