Company fined $3 million for illegal wastewater discharges

September 1996

U.S. Water News Online

SIOUX FALLS, S.D. -- A $1 million penalty levied against John Morrell & Co.. will help Sioux Falls protect the Big Sioux River, local and federal officials say.

The money is part of a $3 million fine Morrell was ordered to pay in a federal court case. The company admitted to falsifying records at its Sioux Falls meat-packing plant and exceeding the amount of ammonia nitrogen it may discharge into the river.

The $1 million in the environmental fund for the city is being held by the federal government until the city council approves an ordinance for its use. The other $2 million goes to the federal government.

"I think any time there is a violation of the environmental laws, the people in that community are affected by it, and are victims of the crime," said U.S. Attorney Karen Schreier. "And victims are entitled to restitution for crimes."

Schreier, whose office prosecuted Morrell, came up with the idea to set up the environmental fund for Sioux Falls. U.S. District Judge Lawrence Piersol approved the language of the fine, and Mayor Gary Hanson and the city council must submit any spending requests to him.

Hanson said the money won't be used until next year. The fund can help eliminate decades-old pollution and help prevent further deterioration of the river, he said. Part of the principal may be used, but some will remain in a trust so that the interest can be spent.

Hanson said the river "has been abused at various times, and I expect it to continue to play an ever-increasing role in providing recreation opportunities and providing a water supply for the city."

City officials say that fish may have been harmed but that the Morrell discharges did no lasting damage to the river or drinking water.



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