Scrap Yard Pressured To Reach Settlement

As it continues to clean up from a massive September fire along the Rum River, an automobile scrap yard in the heart of Anoka, Minn., is facing civil and criminal complaints from state officials over what investigators say are ongoing violations at the site and illegal dumping in Wright County.

The Minnesota Pollution Control Agency has been trying to negotiate a settlement with Schwartzman Co. and has given the company until the end of the month to sign an agreement that will bring it up to state standards for testing and disposal of solid and hazardous waste and storm water management and control.

Jon Schwartzman, president of the scrap-metal recycling facility, said his business meets federal environmental guidelines.

While federal rules may override state guidelines in some cases, they do not in this case, MPCA officials said.

Ashes from the September fire are being contained by tarps at the site after the debris was found to contain lead. The company and MPCA are discussing how to dispose of the material.

Earlier this year, the MPCA said it found an unauthorized berm containing waste material and soil during an inspection. In addition, the design of the berm did not adequately contain the material in it, the MPCA wrote in a final civil settlement offer drafted a few weeks ago.

The MPCA is asking the company to sign the settlement agreement by the end of this month to head off a civil lawsuit or a formal ruling by the MPCA commissioner.

Some samples taken at the site showed polychlorinated biphenyls, or PCBs, at levels greater than 50 parts per million, which by Minnesota law must be managed as hazardous waste.

"The problem we ran into is we were following federal guidelines, which we found didn't fall under Minnesota's guidelines," Schwartzman said. "We're not doing anything that's causing anyone a problem. We're not disposing any solid waste in Minnesota. Our business is running the same way as it was for the last 90 years."

Federal law allows PCB levels of up to 500 parts per million.

However, Jeff Connell, compliance coordinator for the MPCA, said he questioned whether the site would meet federal standards because they prohibit the presence of liquid PCBs in waste.

He also said state PCB standards have existed for more than 10 years, and most people know they override federal guidelines.

"The state has every right to set a different limit than what the federal government says. We are more stringent when it comes to PCB disposal," he said. "This is not a new rule."

Connell added that the company's PCB levels most likely do not pose a health risk.

"It's an environmental issue more than public health," Connell said.

He said further testing will be done that will include sampling groundwater.

He said past investigations have shown that PCBs in salvage yards are unlikely to reach groundwater.

The MPCA's stipulation agreement would require Schwartzman Co. to pay a civil penalty of $150,000.

That amount could be reduced if the company settles a pending criminal charge in Wright County. There also is a criminal complaint against Schwartzman Co. in Anoka County, but that could be merged with the one in Wright County if a judge accepts the defense's request to combine the complaints.

"We have no objection to the consolidation," said Bryan Lindberg, of the Anoka County attorney's office.

The Anoka County case is being reviewed and has been moved back to January.

Leslie Sandberg, press secretary in the Minnesota attorney general's office, said Schwartzman Co. is charged with two counts of knowingly disposing of or arranging for the disposal of hazardous waste in Monticello Township in Wright County.

A trial date has been set for March 3.

Under the MPCA agreement, the company also would need to obtain a required permit for treating, storing and disposing of hazardous waste. The lot also would be subject to regular site inspections.

"We expect an answer in the next week or so," Connell said. "It's not going to reach the holidays."