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Mahard Egg Farm, Inc. Clean Water Act Settlement

Mahard Egg Farm, Inc. Clean Water Act Settlement Resources

"By working with DOJ and our state partners in Texas and Oklahoma, we have reached a significant settlement that reflects the seriousness of Mahard’s violations.  “Large animal feeding operations that fail to comply with our nation’s environmental laws threaten public health and the environment and put smaller farming operations at a disadvantage." - Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance and Assurance.

(WASHINGTON, DC - May 18, 2011) – The U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department (DOJ) today announced that Mahard Egg Farm, Inc., a Texas corporation, will pay a $1.9 million penalty to resolve claims that the company violated the Clean Water Act (CWA) at its egg production facilities in Texas and Oklahoma. The civil penalty is the largest amount to be paid in a federal enforcement action involving a concentrated animal feeding operation (CAFO). The company will also spend approximately $3.5 million on remedial measures to ensure compliance with the law and protect the environment and people’s health.

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Overview of Company and Facility Locations

Mahard Egg Farm, Inc. is a Texas corporation that owns and operates seven facilities in Oklahoma and Texas.  Defendant has been in business since approximately 1930 and is one of the largest egg producing companies in the United States.  In 2003, Egg Industry Magazine ranked Mahard as No. 17 on its list of the nation’s top egg producers.

Mahard owns five production facilities in Oklahoma and three in Texas, not all of which are still in operation.  In general, the facilities include pullet houses, where chicks are hatched; layer facilities, where eggs are produced and processed; and composting facilities, where animal carcasses are composted prior to being land applied to agricultural fields.  Mahard’s seven facilities are more specifically identified as follows:

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Violations

Mahard’s poultry operations generated significant amounts of manure -- estimated to be in excess of 50,000 tons of dry manure per year.  Mahard applied poultry manure to its agricultural fields in excess of the agronomic rates, resulting in the accumulation of large amounts of nutrients in the soils. 

Rain causes these nutrients to discharge to area waterways. Mahard's facilities are in violation of the Clean Water Act (CWA) Sections 301 and 402. 

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Injunctive Relief

Mahard must address CWA violations at all seven of its facilities.  The terms of the Consent Decree:

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Pollutants Reductions

This Consent Decree will prohibit Mahard from contributing any excess nutrients to the environment, and will require Mahard to reduce nutrient levels in the soils so that, over time, levels of nutrients in the soil will return to normal.

In some cases, the byproducts of excessive nutrient application (nitrates) have migrated to groundwater.  At its Vernon-Chillicothe, Texas facility, Mahard relied on groundwater to provide drinking water to its employees.   The Consent Decree will ensure that the groundwater is properly treated to meet drinking water standards prior to human consumption.

The wastewater lagoons at Mahard’s facilities were not constructed in accordance with permit standards. Most did not have liners and the extent to which these lagoons contributed to groundwater contamination is unknown. 

EPA is satisfied that there were no drinking water receptors that would be threatened by any groundwater contamination that did occur.  The Consent Decree requires Mahard to close the lagoons, and to monitor groundwater concentrations of certain pollutants for a period of at least three years, or until the pollutant levels are reduced below 10 parts per million (ppm) for nitrate nitrogen, 10 ppm for ammonium nitrogen and 10 parts per billion (ppb) for arsenic. 

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Health and Environmental Effects

Mahard’s violations have resulted in significant amounts of pollutant discharge to surface waters.  Pollutants associated with poultry operations include nutrients (nitrogen and phosphorus), pathogens and organic enrichment (low dissolved oxygen).  

These pollutants threaten human health and the environment by:

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Civil Penalty

Under the Consent Decree, Defendants will pay a civil penalty of $1.9 million to be split equally among the United States, the State of Texas and the State of Oklahoma.  The penalty is payable in two installments, the first due within 30 days from entry of the Consent Decree and the second due within 180 days from entry.

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Comment Period

The proposed settlement, lodged in the U.S. District Court for the Northern District of Texas, is subject to a 30-day public comment period and final court approval.   Information on submitting comment is available at the Department of Justice website.

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For more information, contact:

James Vinch
U.S. EPA
Office of Civil Enforcement
Water Enforcement Division
1200 Pennsylvania Avenue, NW
Washington, DC 20460
(202) 564-1256
vinch.james@epa.gov   

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