BURNLEY Council is paying for the analysis and disposal of potentially hazardous waste which led to a major chemical alert in the town.
The move comes after an internal investigation revealed no record of the discovery of the white powder being reported to the council two weeks before the incident.
Twelve children spent 48 hours in hospital after playing with the powder from containers they found in an old toilet in the back yard of an empty house in Cleaver Street. Their parents are now seeking legal advice.
Labels on the drums warned they contained anhydrous caffeine, which could cause irreversible damage to the nervous system, major organs and respiratory system.
Caffeine is used by drugs dealers to bulk up or 'cut' illegal drugs to increase their profits.
Police say there are no reports of the chemical having been stolen.
Burnley Council leader Stuart Caddy, initially called for an investigation to be carried out following claims that the chemical was found in Back Ribblesdale Street two weeks earlier and that it had been reported to the police and council. It was later moved to where it was found by the children in the yard of an empty house in Cleaver Street.
But Coun Caddy has now said there is no record of any report having been made to the council.
Environmental manager Mike Street, said the council was paying for a specialist company to remove the substance and for it to be analysed.
Some of the youngsters, aged from three to 15, were covered in the flour-like white powder and emergency services upgraded the incident to an Operation Merlin peacetime alert.
Local resident Paul Kirby, 22, said he had found a black bin liner containing drums of the chemical in the back street behind his home and put them into his own back yard for safety.
He said he sought advice from a local chemist and then contacted the police and council.
He said he was given a Preston telephone number, but was repeatedly put through to a skip unit offering to quote a price for the removal of the material.
Mr Street said: "If anyone finds anything like this they should get in touch with environmental health and cleansing on 01282 779718 and we will investigate it.''
If the substance belongs to the people reporting it they will have to pay for its removal.
But if a possible hazardous substance is found on the highway or on public land, the environmental health department will attend and make arrangements for its removal.
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