Attorney General's News Release

August 4, 1999

Judge okays agreement requiring PSF to invest $25M to protect environment, pay record fine; no objections filed

Kansas City, Mo. — Jackson County Circuit Court Judge Edith Messina late yesterday (Aug. 3) approved a historic agreement obtained by Attorney General Jay Nixon that requires Premium Standard Farms to invest $25 million in waste treatment technology to control odor and pollution at its Missouri facilities and pay the largest penalty ever recovered by any state against a confined animal feeding operation.

The agreement was approved after being filed with the court last Friday. No objections to the agreement were filed by citizens' groups or other interested parties.

PSF will pay a $1 million fine $650,000 upfront, plus $350,000 on condition of future compliance to resolve Nixon's lawsuit alleging water pollution from manure spills and other violations of state and federal environmental laws on its farms in Putnam, Mercer and Sullivan counties. Nixon filed the lawsuit in January of this year.

Nixon is demanding that PSF place implementation on a fast track, and that at least half of the $25 million investment be made in three years and the remainder be spent within five years.

"PSF and Continental Grain operations will be required to make major technological advances in the treatment of waste, and they are ordered to research, develop and implement environmental control technologies to service their Missouri operations," Nixon said.

"In addition to leveling a significant penalty, we are attempting to fix the problem and to provide relief for the hundreds of Missourians whose lives have been disrupted by the stench of these giant factory farms," Nixon said.

Nixon said it was important to note that the settlement does not limit the Environmental Protection Agency in a recently filed federal lawsuit, and it does not limit the state in any future enforcement or legal actions against the company should additional violations occur.

The Attorney General's Office is distributing checks from the settlement today to the school funds of five counties. The school funds in Putnam, Mercer and Sullivan counties will receive $185,000 each; $45,000 will go to the school fund in Jackson County, where PSF has its headquarters; and Continental Grain, the parent company of PSF, will pay $50,000 to the Daviess County School Fund to resolve claims of violations in Daviess County.

Nixon noted that unlike other environmental penalties, the money from CAFO violations can be used directly by the local school districts and does not need to be redistributed through the foundation formula, as is allowed under other environmental fines.

The settlement also requires that a team of outside experts approve the treatment technology and that PSF provide the team a first year work plan within 90 days. The independent experts will be selected by the Office of the Attorney General and PSF and approved by the court. An administrative representative from the Department of Natural Resources shall serve as a member with no voting rights.

"Next-generation technology designed to actually treat the waste is a giant step forward for this industry," Nixon said. "The team of nationally recognized experts will provide oversight, which is essential to ensure the money is spent in a manner that will solve the problems of odor and pollution."

As an added precaution, Nixon is requiring the company to pay the state any portion of the $25 million that is not used within five years, unless the team of experts acknowledges the appropriate technology has been established for less than $25 million.

The team shall seek input from the community through semiannual public meetings, including one to be held within 60 days of the submission of PSF's first work plan. The company is also required to submit to the team of experts an annual report outlining the work for the past year and proposals for the upcoming year.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818