July 13, 2006

LANSING - Attorney General Mike Cox and Michigan Department of Environmental Quality (MDEQ) Director Steve Chester announced today that the Ingham County Circuit Court has ruled in favor of the state and ordered Waterous Company, a Minnesota corporation, to perform all necessary cleanup work to address soil, groundwater, and surface water sediment contamination at the former foundry site of Traverse City Iron Works (TCIW). The company's location is adjacent to the Boardman River in Traverse City.

"This decision sends a message that environmental contamination will not be tolerated in Michigan," said Cox. "When one individual pollutes a river, everyone in the community suffers the consequences. My office will continue to protect Michigan's environment."

According to a former employee's testimony, foundry employees had regularly dumped foundry waste on the site and over the riverbank into the Boardman River for nearly 20 years prior to 1972. When the site was redeveloped for commercial and residential use beginning in 1997, the MDEQ provided the local government more than $1,000,000 in Brownfield Redevelopment Grant funds to pay for investigation and partial cleanup of the contamination.

"By its action, the court has affirmed that the DEQ is correctly interpreting and enforcing the law," said DEQ Director Steven Chester. "The clear message to polluters is that they must completely investigate and clean-up the contamination they have caused."

After Waterous Company, the corporate successor to TCIW, rejected the MDEQ's requests that Waterous voluntarily repay the state costs and complete cleanup of the site, the MDEQ sued Waterous, seeking recovery of costs incurred and the completion of work necessary to address the contamination. Just before trial, Waterous agreed to pay the State $1,250,000.00 to settle part of the case relating to the MDEQ's past cleanup costs at the site.

The July 10, 2006 decision by Ingham County Circuit Court Judge Joyce Draganchuk now declares that Waterous is liable to the MDEQ for all future costs incurred by the State relating to cleanup work at the site. The judge also ordered Waterous to take all necessary action to address the remaining contamination in compliance with the law to protect the public health, safety, welfare, and the environment.

For more information, contact Rusty Hills or Nate Bailey, Attorney General's Office, at (517) 373-8060.

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