970824 Pork Co. Fined $12.6M for Pollution
August 9, 1997
One of the largest pork companies on the East Coast was fined $12.6 million -- the largest water pollution fine ever -- for dumping hog waste into a tributary of Chesapeake Bay.
U.S. District Judge Rebecca B. Smith ruled that Smithfield Foods Inc. was liable for nearly 7,000 violations of the Clean Water Act since 1991.
The ruling resulted from a lawsuit by the U.S. Environmental Protection Agency, which accused Smithfield of polluting the Pagan River and destroying documents to cover it up.
"The court has made it clear that even a large, multibillion dollar corporation like Smithfield Foods cannot gain a competitive advantage at the expense of the public's health," said W. Michael McCabe, regional administrator for the EPA.
Smithfield Foods denounced the EPA and said most of the federal violations were permitted under an agreement with the Virginia Department of Environmental Quality.
The company said it would appeal and "work with others to change the Clean Water Act enforcement scheme so that the EPA will not be allowed to ... prosecute an enforcement action when a responsible state has previously taken effective action."
Smithfield Foods, which slaughters pigs and packs the meat in two plants along the river, was accused of dumping illegal levels of hog waste into the river for several years.
The decaying waste and excrement raised the levels of phosphorous and other elements in the river, poisoning shellfish beds. The Pagan River has been closed to shellfishing for 27 years because of high levels of fecal bacteria and is considered unhealthy for swimming.
Smithfield Foods argued for a fine of no more than $650,000, citing its agreement with the state and noting that many of the records violations were the fault of a former employee.
But Smith, who could have fined the company $174.55 million, ruled Smithfield was liable for 6,982 violations, most of which were for violating pollution levels. She also ruled that the company did not have certain records for a full three years as the permits required.
The judge also found Smithfield Foods had 164 violations for late reporting. The company previously agreed it was liable for 15 days of inaccurate reporting of discharges.
Smith said phosphorus emissions accounted for the majority of the company's violations, but it also violated rules regulating the levels of ammonia, nitrogen, fecal coliform, feces and suspended solids in the river.
The judge also found that Smithfield Foods saved itself $4.2 million by avoiding or delaying compliance with the environmental rules. She said she wants at least part of the fines used to restore the Chesapeake Bay and its tributaries.
Experts hired by the government testified that Smithfield's violations were responsible for 80 percent of the phosphorus in the Pagan. Phosphorus feeds algae, causing it to flourish and block sunlight needed by the aquatic grasses that are habitat for crabs and young fish.
Smith gave Smithfield Foods some credit for hooking up to a local sewage treatment plant to prevent future violations. On Thursday, Smithfield Foods officially ended decades of dumping hog wastes into the Pagan River by completing a hookup with a treatment plant.
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