May 5, 2008

CABOT CREAMERY SENTENCED FOR VIOLATION OF CLEAN WATER ACT

The Office of the United States Attorney for the District of Vermont stated that Cabot Creamery ("Cabot") was sentenced today in United States District Court in Burlington, following its guilty plea to a single-count Information charging it with negligently discharging a hazardous material in the Winooski River in violation of the Clean Water Act. The Honorable William K. Sessions III, Chief United States District Judge, imposed a sentence which included a $50,000 fine, a two-year period of probation, and a $125 special assessment. As part of its term of probation, Cabot was ordered to contribute $50,000 to fund a Supplemental Environmental Project, develop and submit an effective compliance and ethics program, implement a training program for all Cabot employees involved in the handling of hazardous materials, and hire an independent consultant to evaluate Cabot's compliance with the Clean Water Act and the State of Vermont's water statutes and regulations.

According to the Information, Cabot, which merged with Agri-Mark in 1992, regularly uses industrial-sized refrigeration systems in its manufacturing process. These refrigeration systems use air-cooled condenser units containing large quantities of anhydrous ammonia. Anhydrous ammonia is a hazardous material toxic to aquatic life and plants.

In July 2005, Cabot upgraded and replaced its refrigeration system by installing a larger condenser unit. Before the new unit could be installed, the ammonia in the existing unit had to be removed. Cabot decided to complete this work itself rather than relying on a refrigeration company to handle this upgrade. On July l7, 2005, Cabot began removing ammonia from the old refrigeration unit. During this operation, the Cabot employee assigned to remove the ammonia set up a 55-gallon drum filled with water on the edge of the road at the Cabot facility in Cabot, Vermont. The employee did not set up the 55-gallon drum in the containment area underneath the condenser unit, which was designed to capture any liquid or substance from the condenser unit. The employee and his supervisor then drained ammonia from the condenser unit into the 55-gallon drum through a plastic tube for several hours. During this process, a hose left in the drum was continuously running and introducing more water into the drum. The water/ammonia mixture overflowed from the drum and entered a storm drain on the Cabot property, which led to the Winooski River. After the ammonia had been removed from the old condenser unit, the new unit was installed later in the day on July 17, 2005.

The following day, on July 18, 2005, Cabot employees discovered that a pipe on the new condenser unit was defective and had to be replaced. Prior to replacing the pipe, ammonia once again had to be removed from the unit. Cabot employees repeated the procedure employed the day before to drain the ammonia from the condenser unit into the 55-gallon drum. Again, the drum overflowed and the water/ammonia mixture entered the storm drain and the Winooski River. The water/ammonia mixture harmed several miles of the Winooski River killing fish, macroinvertebrates and plant life.

In 1983, Cabot discharged ammonia into the Winooski River damaging several miles of the River and resulting in the killing of fish and other wildlife. As part of a civil settlement with the State of Vermont in 1984 for this improper discharge, Cabot agreed to institute policies regarding the handling of hazardous material to prevent future discharges of such material from its plant into the Winooski River. Despite this agreement, no such policies were in place in July 2005 when the discharge of ammonia again occurred. Moreover, neither Cabot's in-house environmental advisor, nor any outside environmental consultant, was consulted regarding the handling of ammonia in connection with the 2005 refrigeration system upgrade.

United States Attorney Thomas Anderson praised the work of the EPA in this investigation and credited Cabot for its cooperation in resolving this matter.

United States Attorney Anderson also praised the work of the following from the State of Vermont, whose work was instrumental in the successful investigation of the spill: the Game Wardens and Fish Biologists of the Department of Fish & Wildlife, the biologists of the Biomonitoring and Aquatic Studies Section of the Department of Environmental Conservation, and the Agency of Natural Resources Enforcement Division.

Michael Hubbard, EPA Special Agent in Charge, said "Cabot's irresponsible handling of hazardous chemicals caused miles of catastrophic damage to the Winooski River. This was not the first time, and although Cabot employees may not have intended to cause this significant harm to the river, their carelessness and the lack of management safeguards was a breach of the public's trust. This case should serve notice that the EPA Criminal Investigation Division will aggressively investigate anyone who acts in disregard of public health or the environment."

The United States was represented by Assistant U.S. Attorney Barbara Masterson. Cabot Creamery was represented by Robert O'Neill, of Gravel & Shea of Burlington, Vermont.