Dairy Settles

OMAHA (DTN) -- A Washington dairy has reached a settlement with a number of environmental groups that requires the company to take additional measures to protect groundwater from nutrients runoff, according to a consent decree filed with a Washington court this week.

In the consent decree filed with the U.S. District Court for the Eastern District of Washington Monday, Cow Palace agreed to take a number of steps to clean up and protect groundwater for communities near the Granger, Washington, facility.

Cow Palace agreed to double line all lagoons at the dairy, according to the settlement. If approved by the court, the company would have to install linings in three lagoons by Dec. 31, 2015, two others by Dec. 31, 2016, and two by Dec. 31, 2017. The dairy would have until Dec. 1, 2018, to install lining in a safety debris basin.

In addition, the decree will allow the U.S. Environmental Protection Agency to inspect the dairies, as well as to provide any records of reports, correspondence, sampling results and other documents related to Cow Palace's nutrient management plan.

When it comes to groundwater monitoring, the consent decree said Cow Palace agreed to fund the installation of a grid of 14 new monitoring wells.

According to the consent decree, Cow Palace already installed and will be required to maintain a centrifuge manure separator at the dairy. "The parties anticipate that operation of a centrifuge separator will reduce the nitrogen and phosphorus content of the dairy's liquid manure," the decree said.

The dairy will be required to provide data to the plaintiffs on nutrient removal and how the nutrients are being used.

Cow Palace will install concrete aprons along all water troughs within all the cow pens at the dairy by Dec. 31, 2016. In addition, the dairy will have until Oct. 15, 2016, to install concrete at the terminal end of the alleyways in all of its cow pens.

The settlement will require Cow Palace to ensure that its silage area is located "entirely on an impervious surface." By Oct. 15, 2015, the company will be required to implement an aerated pile pilot project to reduce moisture, increase oxygen and provide temperature control, and to reduce the area of compost to 30 acres or less.

Cow Palace will be required to show that manure applications to fields are done so as part of a nutrient management budget. The company will be required to take soil tests in all manure application fields following the 2015 harvest.

In addition, because area communities have seen elevated nitrate levels in drinking water, the company has agreed to continue to provide clean drinking water to eligible residences near the dairy.

COMPLIANCE COSTS

Brendan Monahan, an attorney for Cow Palace that operates three dairies in the region, said the company already is operating with a consent order issued by EPA in March 2013. The latest settlement essentially duplicates the company's efforts underway, he said.

"So one could argue about whether these costs are attributable to the consent decree, or to the AOC," Monahan said in an email to DTN. "The installation of lagoons alone is expected to cost several million dollars, per dairy, over the next three to four years."

Monahan said there are three "out-of-pocket expenses" in the consent decree that were not covered under the EPA consent decree. The installation of 14 new monitoring wells will cost the dairies about $50,000 to $70,000 each. The expansion of a drinking water outreach program will generally cost about $2,000 per month for each dairy. The dairies agreed to contribute $900,000 towards plaintiffs' attorney fees and expert costs.

"But we expect a petition for a sum that at least quadruples such amount," he said. "We will oppose the petition on the grounds that the fees are excessive, especially in light of the duplicative relief... Overall, we're confident the consent decree achieves a reasonable balance between addressing the plaintiffs' concerns and still allowing the dairies to run efficient and competitive businesses.

"Taken in context, these dairies recognized the irreversible trend across all segments of agricultural towards sustainable farming practices, and they've also have seen a developing consumer preference for businesses that place a premium on environmental responsibility."

MANURE MANAGEMENT

Manure from dairy operations could be deemed solid waste if it is not managed properly, a federal judge ruled in a case filed against Cow Palace, LLC, and related companies by the Community Association for Restoration of the Environment and by the Center for Food Safety. The case has drawn the attention of national agriculture groups.

Back in February, a federal district court issued a first-of-its-kind ruling, finding that nitrate levels exceeding federal limits in drinking wells downstream from the dairy are enough to trigger a violation of the Resource Conservation and Recovery Act, based on the dairy's alleged improper management of manure.

A handful of agriculture interest groups pointed out in a December amicus brief filed with the court that the dairy and thousands like it across the country already are regulated by the Clean Water Act and the Safe Drinking Water Act.

Additionally, Cow Palace already was working with the EPA to correct problems related to manure management and drinking water.

The court ruled manure from a dairy owned by Cow Palace may be a hazardous waste according to RCRA standards, endangering nearby residents. RCRA gives EPA authority to control hazardous waste from generation through transportation, treatment, storage and disposal. Never before has a court ruled, however, that manure becomes a hazardous waste when it is managed improperly.

The lawsuit was the latest in a series of legal actions taken against the dairy by two Washington, D.C.-based non-profit groups -- Community Association for Restoration of the Environment and Center for Food Safety.

Todd Neeley can be reached at todd.neeley@dtn.com

Follow him on Twitter @toddneeleyDTN

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