Hinkley , California ( CNN ) -- Pacific Gas and Electric , the utility company at the center of a long standing water contamination problem in this small agricultural town , is trying to soothe growing unease by offering to buy homes located near a chemical plume . In a letter to residents , which was also provided to CNN , the utility also said it will establish a community advisory group to `` more consistently hear concerns and feedback from the community . '' The town of Hinkley became famous from the Oscar winning film `` Erin Brockovich '' starring Julia Roberts . The movie , released in 2000 , chronicles how Brockovich , a paralegal , helped win a $ 333 million settlement from PG & E . Brockovich has been talking with residents about their renewed concerns . `` I 'm thinking somebody somewhere has been asleep at the wheel , '' she told CNN . The problem arose after a chemical known as chromium 6 seeped into the groundwater . Chromium 6 was used between 1952 and 1966 to prevent rust in machinery at a nearby PG & E plant . The chemical has been proven to cause a number of life threatening illnesses , including cancer . According to Lahontan Regional Water Quality Control Board , the chemicals have continued to spread and traces of chromium 6 have been recently detected in a previously untainted aquifer . `` The remediation itself has been very effective , but an underground aquifer is something that is just difficult to centralize and keep in one area , '' said Greg Pruett , a senior vice president for PG & E . The utility maintains that the drinking water meets safety standards set by California , but acknowledges that it needs to give residents a sense of confidence that it takes their concerns seriously . To that end , PG & E is giving some residents free bottles of water . In addition , residents who live over or next to the chemical plume will be able to participate in PG & E 's home purchase program . Pruett hopes residents view it as a good faith offer . `` Our attitude is lets work with you . Lets purchase your property -- and let 's help you relocate , '' he said .
Utility says it will establish a community advisory group . PG & E became famous from the Oscar winning film `` Erin Brockovich '' starring Oscar . In the movie , a paralegal , helps win a $ 333 million settlement from Hinkley .