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Thursday, February 11, 2010

Environment - "Bankruptcy could lead to smelly mess for state: Union-Go Dairy, which has had manure-lagoon problems, files for relief from creditors" [Updated]

This ILB entry from Feb. 9, 2010 briefly mentioned a story headed "Randolph megadairy files for bankruptcy", from the Richmond Palladium-Item.

Today Seth Slabaugh of the Muncie Star-Press reports in a story that begins:

WINCHESTER -- Factory farm critics are concerned that the state will get stuck with another manure cleanup as a result of Union-Go Dairy's filing for relief from creditors under the U.S. bankruptcy code.

Union-Go, which contains about 1,600 cows, filed the petition one day after a commercial-foreclosure lawsuit accused the dairy of breach of contract. AgStar Financial Services is demanding $6.7 million and a receiver.

And that's not the only legal action facing the dairy. Union-Go is one of several Randolph County concentrated animal feeding operations (CAFOs) being sued by neighbors for allegedly mismanaging millions of gallons of manure and creating harmful odors and highly aggressive flies.

"I am concerned about what will happen at this dairy," said Barbara Cox of Indiana CAFO Watch. "The lagoon has been compromised and I have questions about ground water contamination.

"IDEM (Indiana Department of Environmental Management) should be keeping a very close eye on this facility and not allow what happened with Muncie Sow Unit to occur here."

Last year, IDEM obtained a court order to remove manure from a lagoon at Muncie Sow Unit, a confined hog-feeding operation near Eaton, after its owner was prosecuted for environmental crimes. In May, the state began hauling the manure in tanker trucks to an Indianapolis wastewater treatment facility at a cost of 9 cents a gallon.

But during a weekend in mid-May, millions of gallons of manure from the lagoon were drained -- apparently on purpose and in violation of the law -- into a ditch emptying into Mississinewa River. More than 1,000 fish were killed.

"For five years, our group has asked that financial bonding and assurance be required when a CAFO permit is issued," Cox said. "For five years, the bills that included this bonding (requirement) were either not heard or did not pass in the General Assembly."

For background, see this ILB entry from May 15, 2009, headed "Owners say IDEM should pay for manure cleanup" that began:
Updating a long list of earlier ILB entries, including the May 11th "Who cleans up if a hog farm goes bankrupt?" and the May 12th "Millions of gallons of hog manure spilled: State officials believe the discharge might have been deliberate", where the ILB noted that "it appears things have gone from bad to worse", today comes a story readers may have anticipated.
[Updated 2/14/10] Seth Slabaugh of the Muncie Star-Press reports today on last year's "gigantic spill of hog manure" and IDEM's efforts to recover "the $195,964 it spent removing the manure through a lawsuit against John and Becky Moriarity."

Posted by Marcia Oddi on February 11, 2010 12:20 PM
Posted to Environment