ILLINOIS POLLUTION CONTROL BOARD

August 7, 2008

PEOPLE OF THE STATE OF ILLINOIS,

Complainant,

v.

MURPHY FARMS, LLC,

Respondent.

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PCB 00-104

(Enforcement - Water)

OPINION AND ORDER OF THE BOARD (by N.J. Melas):

On December 21, 1999, the Office of the Attorney General, on behalf of the People of the

State of Illinois (People), filed a complaint against The Highlands, LLC (Highlands), Murphy

Farms, Inc.

1

, and Bion Technologies, Inc. (Bion) (collectively respondents).

See

415 ILCS

5/31(c)(1) (2006); 35 Ill. Adm. Code 103.204. The complaint concerns the management of

livestock waste at a 3,650 sow farrow-to-wean facility located south of Williamsfield in Elba

Township, Knox County, Illinois. The complaint alleged that the property and buildings are

owned by Highlands, which also provided labor for the facility. The complaint went on to allege

that Murphy Farms, Inc., owner of the hogs, had a contractual relationship with Highlands,

which ended January 1, 2003, after which the hogs were removed from the facility. Finally, the

complaint alleged that Bion designed the facility’s livestock waste management system.

The Board accepted a stipulation and settlement as to Bion only on January 24, 2001

2

.

On February 18, 2004, the People filed a second amended complaint against Highlands and

Murphy Farms, Inc. The Board accepted a stipulation and settlement as to Highlands only on

January 4, 2007

3

.

1

Since the original complaint was filed, Murphy Farms, Inc. merged into respondent Murphy

Farms, LLC, which is a subsidiary of Murphy-Brown, LLC, which is the hog production group

for and a subsidiary of Smithfield Foods, Inc. Stipulation at 3.

2

Bion “did not admit responsibility for” any of the alleged violations, but agreed to pay a civil

penalty of $9,000.

3

Highlands admitted that it caused or allowed unreasonably offensive odors in 1999, 2000,

2002, and 2003, as alleged in the second amended complaint. Highlands further admitted that it

caused or allowed a release of livestock waste from the facility on June 18, 2002. The Highlands

denied all other alleged violations in the second amended complaint. In addition to

approximately $116,320 in compliance costs, and a fish kill claim of $1,114.51, Highlands

agreed to pay a civil penalty of $9,000.

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2

The People and the sole remaining respondent, Murphy Farms, LLC (Murphy Farms),

now seek to settle without a hearing. For the reasons below, the Board accepts the parties’

stipulation and proposed settlement.

Under the Environmental Protection Act (Act) (415 ILCS 5 (2006)), the Attorney

General and the State’s Attorneys may bring actions before the Board on behalf of the People to

enforce Illinois’ environmental requirements.

See

415 ILCS 5/31 (2006); 35 Ill. Adm. Code 103.

In this case, the People allege in a three-count second amended complaint that respondents

violated Sections 9(a) and 12(a), (d), and (f) of the Act and Section 501.405(a) of the Board’s

agriculture regulations (415 ILCS 5/9(a), 12(a), (d), (f); 35 Ill. Adm. Code 501.405(a)). The

People further allege that respondents violated these provisions by causing or allowing the

emission of offensive odors, and causing or allowing the discharge of livestock waste to a

tributary of French Creek without a National Pollutant Discharge Elimination System (NPDES)

permit so as to create water pollution.

On June 16, 2008, the People and Murphy Farms filed a stipulation and proposed

settlement accompanied by a request for relief from the hearing requirement of Section 31(c)(1)

of the Act (415 ILCS 5/31(c)(1) (2006)). This filing is authorized by Section 31(c)(2) of the Act

(415 ILCS 5/31(c)(2) (2006)), which requires that the public have an opportunity to request a

hearing whenever the State and a respondent propose settling an enforcement action without a

public hearing.

See

35 Ill. Adm. Code 103.300(a). The Board provided notice of the stipulation,

proposed settlement, and request for relief. The newspaper notice was published in the

Tri

County News-Williamsfield Edition

on July 3, 2008. The Board did not receive any requests for

hearing. The Board grants the parties’ request for relief from the hearing requirement.

See

415

ILCS 5/31(c)(2) (2006); 35 Ill. Adm. Code 103.300(b).

Section 103.302 of the Board’s procedural rules sets forth the required contents of

stipulations and proposed settlements.

See

35 Ill. Adm. Code 103.302. These requirements

include stipulating to facts on the nature, extent, and causes of the alleged violations and the

nature of respondent’s operations. Section 103.302 also requires that the parties stipulate to facts

called for by Section 33(c) of the Act (415 ILCS 5/33(c) (2006)), which bears on the

reasonableness of the circumstances surrounding the alleged violations. Under the proposed

stipulation, Murphy Farms:

neither admits nor denies that the facility was the source of unreasonably

offensive odors in 1999, 2000 and 2001, as alleged in the Second Amended

Complaint. Murphy disputes that it controlled, or had the ability to control,

operation of the facility and denies that it had any role in Highlands’ choice and

design of the buildings and waste treatment facility. Respondent Murphy denies

each and every violation alleged against Respondent Murphy in the Second

Amended Complaint filed in this matter and referenced herein. Stipulation at 8.

The stipulation also addresses the factors of Section 42(h) of the Act (415 ILCS 5/42(h)

(2006)), which may mitigate or aggravate the civil penalty amount. The proposed stipulation

does not contain a stipulated civil penalty. However, Murphy Farms agrees to pay a “monetary

payment” in the sum of $35,000 to the University of Illinois, College of Agriculture, Consumer

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