EPA v. ALDER CREEK WATER CO

Case summary

COMPLAINT FILED 9/19/79 AGAINST ALDER CREEK ( CO ) ALLEGED THAT THE CO, UNDER THE DIRECTION OF GERALD RED BENNET, HAD VIOLATED THE SAFE DRINKING WATER ACT BY SUPPLYING WATER THAT EXCEEDED MAXIMUM CONTAMINANT LEVELS FOR COLIFORM BACTERIA, AND BY FAILING TO ANALYZE THE DRINKING WATER, REPORT ANALYT- ICAL RESULTS TO EPA, AND NOTIFY THE PUBLIC OF THESE VIOLA- TIONS. ON 11/6/79, US DIST CT JUDGE GEORGE JUBA GRANTED THE US MOTION FOR A PRELIMINARY INJUNCTION REQUIRING THE ALDER CREEK WATER CO AND MR. BENNETT TO TAKE SPECIFIC ACTION TO COMPLY WITH THE ACT. MR. BENNETT FAILED TO CARRY OUT THE REQUIREMENTS OF THE INJUNCTION. IN MAY, 1980, MAGISTRATE JUBA FOUND MR. BENNETT IN CIVIL CONTEMPT OF THE INJUCTION. MR. BENNETT WAS SENTENCED TO 10 DAYS IN JAIL ON 9/25/80 FOR HIS CONTINUING CONTEMPT OF THE CT'S ORDERS, ALTHOUGH THAT SENTENCE WAS LATER SUSPENDED. ON 9/26/80, AN EQUITABLE RECEIVERSHIP WAS CREATED, AND MR. GENE GINTHER WAS APPOINTED RECEIVER. AS INTEREST DEVELOPED AMONG THE LOCAL RESIDENTS IN THE QUALITY OF THEIR DRINKING WATER, A NUMBER OF STEPS WERE TAKEN AT THE COMMUNITY LEVEL THAT SIGNIFICANTLY AFFECTED THE LITIGATION. IN 1981 THE ALDER CREEK WATER USERS' ASSOCIA- TION WAS FORMED, AND THEREAFTER INTERVENED IN THE PRESENT CASE. THE ASSOCIATION WAS ALSO INSTRUMENTAL IN ORGANIZING SUPPORT FOR JUNE, 1982 LOCAL ELECTIONS THAT CREATED FIVE WATER DISTRICTS ENCOMPASSING THE FIVE WATER SOURCE AND DISTRIBUTION SYSTEMS FORMERLY OPERATED BY THE CO. THROUGH INTERGOVERNMENTAL AGREEMENTS, THESE NEW WATER DISTRICTS--- ALDER CREEK/BARLOW, SLEEPY HOLLOW ( OLD & NEW ), COUNTRY CLUB, RIVERSIDE, AND WILDWOOD ANNEX---CREATED A JOINT OPERA- TING AGENCY UNDER STATE LAW KNOWN AS THE ALDER CREEK WATER AUTHORITY. UPON APPLICATION BY THE INTERVENOR ASSOCIATION, ON 7/27/82, MAGISTRATE JUBA ENTERED AN ORDER TRANSFERRING THE RECEIVERSHIP FROM MR. GINTHER TO THE AUTHORITY. PURSUANT TO THE TERMS OF THAT ORDER, EPA AND THE AUTHORITY NEGOTIATED A COMPLIANCE AGREEMENT SETTING FORTH A SCHEDULE BY WHICH THE AUTHORITY WOULD CARRY OUT PHYSICAL IMPROVEMENTS TO THE FIVE WATER SYSTEMS. THE AUTHORITY SUBSEQUENTLY PAID APPROXIMATELY $72,000 TO PURCHASE THE ASSETS OF THE COMPANY. ITS STATUS AS LEGAL OWNER OF THE COMPANY'S ASSETS SUPPLANTED ITS STATUS AS RECEIVER. BY ORDER OF 2/15/83, MAGISTRATE JUBA ACCORDINGLY TERMINATED THE AUTHORITY'S RECEIVERSHIP THAT HAD BEEN CREATED BY HIS 7/27/82 ORDER. THE ORIGINAL DEFENDANT, MR. BENNETT, APPEALED MAGISTRATE JUBA'S 7/27/82 AND 2/15/83 ORDERS TO THE 9TH CIRCUIT CT OF APPEALS, CONTESTING APPOINTMENT OF THE AUTHORITY AS RECEIVER AND THE COURT'S VALUATION OF THE COMPANY'S ASSETS.

Defendants (3)

• ALDER CREEK WATER AUTHORITY
• ALDER CREEK WATER CO.Named in complaintNamed in settlement
• BENNETT, GERALD I. (RED)Named in complaintNamed in settlement

Facilities (5)

• ALDER CREEK WATER CO WILDWOOD

  WILDWOOD NE OF CY, ANTELOPE, OR, 97001

  Registry ID: 110010622950

• ALDER CREEK WATER CO COUNTRY

  HWY 26 SW OF CY, BRIGHTWOOD, OR, 97011

  Registry ID: 110010622941

• ALDER CREEK WATER CO RIVERSIDE

  HWY 26 2 MI E OF CY, SANDY, OR, 97055

  Registry ID: 110010623129

• ALDER CREEK WATER CO BARLOW D

  HWY 26, SANDY, OR, 97055

  Registry ID: 110010623138

• ALDER CREEK WATER CO SLEEPY HOLLOW

  HWY 26 1 MI E OF CY, BRIGHTWOOD, OR, 97011

  Registry ID: 110010622969

Statutes cited

• SDWA 1414 — Safe Drinking Water Act

Enforcement conclusions (1)

• ALDER CREEK WATER COentered 1987-07-29

  Primary law: SDWA

  Federal penalty: $6,200

Timeline (9 milestones)

• 1978-10-24Enforcement Action Data Entered
• 1979-05-18Referred To Headquarters
• 1979-06-15Referred To Dept Of Justice
• 1979-09-17Referred TO U.S. Attorney
• 1979-09-19Complaint Filed With Court
• 1987-07-29Final Order Lodged
• 1987-07-29Final Order Entered
• 1987-07-29Concluded
• 1987-10-28Enforcement Action Closed