Environment and Natural Resources
FOR IMMEDIATE RELEASE: August 1, 2005
FOR MORE INFORMATION: Kim Smith, 773-3152

Davisco and DENR Agree to Settlement for Alleged Environmental Violations

PIERRE – The South Dakota Department of Environment and Natural Resources (DENR) announced today that a settlement has been reached with Davisco Foods International (Davisco) for alleged violations of water quality limits in its surface water discharge permit. The alleged violations occurred from November 2004 to April 2005 at the company’s cheese and whey processing plant in Lake Norden, South Dakota. Davisco has not admitted to the alleged violations, however, in cooperation with DENR, has agreed to a settlement.

As part of its operation in Lake Norden, water is evaporated from the milk in the process of making cheese. This water is very good quality and is reused throughout the plant for various purposes. Davisco also uses potable water from the city of Lake Norden for cooling purposes throughout the plant. Davisco has a permit from DENR that allowed any excess evaporation or cooling water to be discharged into a ditch that led to Lake St. John, provided the water met certain water quality criteria.

During the five-month period, DENR has alleged that Davisco violated its permit requirements for chlorine, pH, and temperature. The chlorine in the water is left over from the city chlorinating its drinking water supply. Davisco stated it was unaware the company was responsible for reducing the chlorine placed in the water supply by the city.

“While Davisco Foods is an important industry for the state and local community, making sure that companies follow the rules and protect our water resources is one of the most important things we do,” said DENR Secretary Steve Pirner. “This settlement does that by identifying the necessary steps to protect the water quality of Lake St. John, and shows Davisco’s commitment to ensure future compliance at its plant.”

As part of the settlement, Davisco has agreed to pay a fine in the amount of $42,681 and has volunteered to cease all permitted discharge, in an effort to ensure absolute future compliance. It will instead direct the water into its wastewater treatment facility near its cheese plant in Lake Norden.

“Davisco did not use, chlorinate, or otherwise alter the drinking water it received from the city of Lake Norden, and was unaware that it was required to remove the chlorine that was placed in it by the city before discharging it.  Water quality samples taken by DENR during this time show that pH and temperature were well within the acceptable permitted levels prior to reaching Lake St. John, and we are confident that we did nothing to harm the environment. Nevertheless, Davisco prides itself on being environmentally responsible and strives to operate its facility accordingly,” said Jon Davis of Davisco.

As required by law, the $42,681 collected through the settlement agreement will be deposited in the state Regulated Substance Response Fund.  This fund is used by the state for environmental cleanup actions.

- 30 -