EPA v. KETCHIKAN PULP COMPANY - METLAKATLA SAWMILL

Case summary

THIS MATTER INVOLVES AN ENFORCEMENT ACTION AGAINST KETCHIKAN PULP COMPANY'S (KPC) ANNETTE HEMLOCK SAWMILL (FACILITY) FOR THE CONSTRUCTION AND OPERATION OF AN OLIVINE UNIT TO BURN WOOD WASTE, IN VIOLATION OF THE PREVENTION OF SIGNIFICANT DETERIORATION (PSD) REQUIREMENTS OF THE CLEAN AIR ACT. THIS CASE HAS BEEN BROUGHT TO OUR ATTENTION THROUGH NUMEROUS CITIZEN COMPLAINTS REGARDING EXCESSIVE SMOKE COMING FROM THE UNCONTROLLED FACILITY. THE FACILITY IS A MAJOR EMMPLOYER FOR THE METLAKATLA INDIAN COMMUNITY. KPC CONSTRUCTED THE OLIVINE UNIT IN 1980, WITHOUT FIRST APPLYING FOR A PERMIT. SECTION 165 OF THE ACT AND EPA REGULATIONS AT 40 C.F.R. SECTION 52.21 REQUIRE KPC TO APPLY FOR A PERMIT BEFORE CONSTRUCTING, OPERATING, OR MODIFYING A SOURCE THAT EMITS POLLUTANTS AT LEVELS THAT QUALIFY IT AS A MAJOR STATIONARY SOURCE. IN AREAS WHERE THE NATIONAL AMBIENT AIR QUALITY STANDARDS (NAAQS) ARE IN ATTAINMENT, THE REQUIREMENTS OF SECTION 165 OF THE ACT ARE INTENDED TO PREVENT THE SIGNIFICANT DETERIORATION OF AIR QUALITY AND TO PROTECT PUBLIC HEALTH AND WELFARE. USING INFORMATION PROVIDED BY KPC, WE HAVE DETERMINED THAT THE FACILITY IS A MAJOR STATIONARY SOURCE, AND THAT CONSTRUCTION OF THE OLIVINE UNIT WAS A MAJOR MODIFICATION TO A MAJOR STATIONARY SOURCE. EFFORTS BY EPA IN 1980 TO REQUIRE KPC TO APPLY FOR A PERMIT AND TO INSTALL AIR EMISSION CONTROL EQUIPMENT WERE UNSUCCESSFUL, BUT KPC STOPPED USING THE UNIT IN 1981. WHEN KPC AGAIN BEGAN USING THE UNIT IN 1990, EPA BEGAN A SERIES OF ACTIONS TO REQUIRE KPC TO COMPLY WITH THE PSD REQUIREMENTS. IN DECEMBER 1991, EPA ISSUED A COMPLIANCE ORDER REQUIRING KPC TO APPLY FOR A PERMIT, BUT KPC FAILED TO COMPLY. THE LITIGATION REPORT RECOMMENDS SEEKING THE MAXIMUM CIVIL PENALTY OF $25,000 PER DAY FOR EACH VIOLATION OF THE CAA. FOR SETTLEMENT PURPOSES, HOWEVER, THE REGION RECOMMENTS A MINIMUM CIVIL PENALTY OF $411,380, WHICH INCLUDES AN ECONOMIC BENEFIT COMPONENT OF $52,630. IN ADDITION, THE LITIGATION REPORT RECOMMENDS OFFERING A CREDIT TOWARDS THE PENALTY FOR A PORTION OF KPC'S COSTS TO INSTALL A WOOD-WASTE BOILER FOR DISPOSAL OF WOOD-WASTE, AS A SUPPLEMENTAL ENVIRONMENTAL PROJECT (SEP).

Defendants (1)

• KETCHIKAN PULP COMPANYNamed in complaintNamed in settlement

Facilities (1)

• KETCHIKAN PULP CO METLAKATLA

  ANNETTE IS, METLAKATLA, AK, 99926

  Registry ID: 110010645418

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• KETCHIKAN PULP COMPANY - METLAKATLA SAWMILLentered 1997-01-22

  Primary law: CAA

  Federal penalty: $359,000

Timeline (7 milestones)

• 1990-08-21Enforcement Action Data Entered
• 1994-08-01Referred To Dept Of Justice
• 1996-08-30Final Order Lodged
• 1996-08-30Complaint Filed With Court
• 1997-01-22Final Order Entered
• 1997-01-22Concluded
• 1998-02-03Enforcement Action Closed