June 7, 2007

The Department of Environmental Quality announced today that the 30th Circuit Court has issued an Interim Order requiring Vreba-Hoff Dairy LLC to undertake certain activities to protect water quality in the vicinity of two Vreba-Hoff dairies located in Hudson. The Interim Order is the result of the DEQ's court action filed in January 2007, requesting that the court find Vreba-Hoff in violation of a Consent Judgment entered by the court in December 2004 to resolve a lawsuit filed by the DEQ in September 2003. The Interim Order largely reflects the outcome of court-ordered mediation that the parties have participated in since late February of this year.

The Interim Order substitutes certain provisions of the 2004 Consent Judgment, most importantly by imposing standards and volume limitations on Vreba-Hoff's waste production, thereby limiting the number of cows at the facilities. The herd will initially have to be reduced or waste otherwise removed from the site to a level that better reflects Vreba-Hoff's current manure treatment capabilities. Any herd increase will depend on continued compliance with the Interim Order, construction and operation of a new treatment system, and attainment of standards. Vreba-Hoff is also prohibited from constructing any new barns to house additional animals at the two facilities for a period of ten years.

"Although the court's order is not the ultimate outcome we had hoped for, it does represent movement in the right direction, and I appreciate the tremendous amount of work that DEQ staff and the Department of the Attorney General devoted to this case," said DEQ Director Steven E. Chester. "Unfortunately, until Michigan enacts stronger laws controlling the location and size of CAFOs, our ability to properly regulate them and satisfy the public's high expectations for protection of the public health and our water resources is limited."

The Interim Order allows Vreba-Hoff to transition to a biologically-based treatment system similar to municipal wastewater treatment lagoons from the mechanical treatment system initially constructed pursuant to the 2004 Consent Judgment. Malfunctions of that mechanical treatment system and the associated accumulation of untreated waste at the dairy operations led to the DEQ's enforcement action.

The Interim Order memorializes Vreba-Hoff's removal of 50 cows from its operations in May due to the unlawful land application of untreated waste in early April, and incorporates further reductions in herd size as a sanction should Vreba-Hoff fail to meet standards for waste treatment and storage. Prior to additional reductions in animals, Vreba-Hoff would have the option of transporting improperly treated waste to a licensed disposal facility.

"Mega-farms require great regulatory scrutiny because they have the potential to severely impact the environment," said Attorney General Mike Cox. "The enforcement action taken was a necessary step to compel compliance with our environmental laws and again demonstrates my commitment to preserve and protect our natural resources."

The order requires Vreba-Hoff to pay $180,000 to the state of Michigan as a mix of stipulated fines under the 2004 Consent Judgment, civil fines for new violations, and enforcement costs. In addition, if Vreba-Hoff meets established treatment standards and elects to increase its herd size in accordance with the schedule allowed by the court, it must pay to the state an additional $150 per animal which is intended to be used by the DEQ for enhanced oversight of the facilities to assure that they comply with the Interim Order. Heavy stipulated penalties of up to $10,000 per event have been structured for further discharges to surface waters of the state.

The documents are available on the DEQ's Web site at www.michigan.gov/deq, then click on Water.

Editor's note: DEQ news releases are available on the department's Internet home page at www.michigan.gov/deq.

"Protecting Michigan's Environment, Ensuring Michigan's Future"

Revised June 7, 2007 by Pat Watson