Missouri regulators order a halt to waste sludge operations

Dec. 1—The Missouri Department of Natural Resources has directed Denali Water Solutions to cease operations in Missouri.

According to state Rep. Dirk Deaton, R-Noel, on Nov. 29, the DNR notified Denali via letter that it was withdrawing its "enforcement discretion" issued to Denali in a June 30 letter. He also noted in his statement there has been "significant public interest" over Denali's land application practices and waste storage lagoons.

On Oct. 3, state officials investigated complaints about overapplication of what Denali says is "non-hazardous" fertilizer but critics call "sludge" on land in McDonald County, Deaton noted, and during the investigation, DNR "staff observed that the operators for Denali ... were not operating pursuant to the operational controls listed in the June 30, 2023, letter."

The October incident followed prior violations of the Missouri Clean Water Law; as part of a DNR order, Denali was ordered to pay a previous penalty of $30,000.

Deaton said in a statement: "As a result, DNR has withdrawn enforcement discretion and directed Denali to cease land application in the State of Missouri until or unless there is a permit exemption, or a permit has been obtained. DNR further directed Denali to 'pump and haul the current contents of all storage basins containing process wastewater to a permitted wastewater treatment facility.'"

DNR also informed Denali that going forward, "any unpermitted land application of process wastewater will be cited as intentional violations of the Missouri Clean Water Law."

Responses to the letter

Residents in Newton and McDonald counties have been angry about the odor from the product being applied to fields, and have said they also have fears about what's in the product and whether it will damage their property, water or health. Hundreds have gathered in meetings earlier this year to discuss their concerns and what they can do about them.

Korrie Bateman, a member of the committee called Stop Land Use Damaging our Ground and Environment, or SLUDGE LLC, said the action by the DNR was "a big step."

"I don't think it is over by any means," said Bateman, who lives near Fairview in Newton County. "For the DNR to step up and hold Denali accountable for having to get the proper permits, I think it's huge for our case. For so long now they've been operating without permits and they've been getting away with it. I definitely think it's a step in the right direction. I don't think it's a permanent fix, but I think it's a start."

Denali Water Solutions issued on Friday an emailed statement through spokesman Samuel Liebl that said: "More than 100 Missouri farmers rely on our organic fertilizers, and dozens of Missouri food manufacturers employing more than 10,000 Missouri workers depend on our services to continue their current business operations. Without the ability for Denali to operate, these Missouri companies will face extremely challenging and costly decisions. We believe this abrupt action by the Missouri DNR puts the state's food industry at risk."

Denali, based in Russelville, Arkansas, also defended its operations in Missouri.

"Denali has a long track record of responsibly handling the residuals that result from water treatment at food manufacturing facilities, recycling these residuals as valuable fertilizers, and protecting clean water in Missouri," the company said. "We are committed to ensuring a positive outcome for Missouri farmers, businesses and communities and are working with all parties involved on a long-term solution as soon as possible."

Gabe Timby, senior director of environmental services with Denali, acknowledged at a meeting earlier this year that more than 400 million gallons of what he described as food processing residuals were spread in Missouri and Arkansas last year.

Permit history

According to the DNR, until this year, Denali applied its product in Missouri under a permit exemption, based on a fertilizer license issued by the Missouri Fertilizer Control Board, but as of July 1, the Missouri Fertilizer Control Board did not renew those licenses. On June 30, the DNR also said it issued letters to Denali and other companies that previously held fertilizer licenses, stating that it would not take enforcement action for the continued land application of materials formerly licensed as fertilizer, as long as the company submits a permit application and all land applications meet the specific conditions and operational parameters set forth in the letter.

On Nov. 29, the department withdrew the June 30 letter to Denali "based on its land application noncompliance." It noted:

—Six past violations of the Missouri Clean Water Law at Cave Springs Branch in McDonald County and Indian Creek in Newton County "resulting in discharge to waters of the state without a permit, causing pollution and violating water quality standards."

—On Oct. 3, DNR staff conducted an investigation in response to public concern and observed evidence of over-application of materials on saturated ground. "... Based on observations made during the investigation, the department issued a notice of violation for operating without a permit and placing water contaminants in a location where they are reasonably certain to cause pollution."

Heather Peters, Water Pollution Branch chief for the Missouri Department of Natural Resources, said the letter mailed this week orders an immediate halt to land application on farms in Missouri and gave the company until the end of the day on Friday to stop picking up and bringing waste water from the companies it serves and bringing it to the Evans Lagoon in Newton County near Fairview and the Gideon Lagoon near Stella in McDonald County.

She said the enforcement team at DNR was still discussing when or even whether to require Denali to empty its operational lagoons.

"As of today, they are absolutely storing without a permit, and that violation exists today and it exists until they empty those basins or they obtain a permit," Peters said. "The enforcement action associated with storage is not yet resolved so the timeline for that is not yet finalized, but when we do finalize it that will be something we will put out on our webpage and share."

Bateman said SLUDGE has filed a lawsuit in Cole County Circuit Court in Jefferson City demanding that DNR step up its enforcement of its own rules regarding Denali's operations. She said she hopes the groups efforts helped push the DNR to act with regard to Denali.

Residents in Newton and McDonald counties have complained for months about odors that were so thick they clung to clothing and have prevented them from enjoying being outdoors.

Vallerie Steele, of Fairview, and another leader of SLUDGE, previously told the Globe: "The odors affect schools, and kids often can't go out for recess. It ruins barbecues, time in our pools and outdoor family time. Along with the odor come flies and mosquitoes. Because of fats, oils and grease, the odor sticks to your skin, clothes, pets, inside of homes and vehicles, and can smell for days."

Denali has said in previous statements, "We work at every step to minimize odor. In Missouri specifically, we are investing in solutions for odor reduction at our storage basins."

What's next

Peters said the DNR is requiring Denali to apply for "site-specific permits" in order to resume operations, but no information was available on how long that process might take.

"For them to get to store and land apply through those basins, they will have to go through the formal permit process," Peters said. "They have applied for a permit for both of those earthen storage structures, the Evans Lagoon and the Gideon Lagoon and the associated land application. We have not yet drafted a permit for public notice. There are some legal challenges and we don't comment on ongoing litigation, but the way the process would work, for them to obtain a permit, we would have to draft one and we would have to put it on public notice.

"The public notice includes the very significant and important to us public participation process."

Bateman said the SLUDGE group in Newton and McDonald counties is not going anywhere and still needs community support to keep the pressure on the DNR and Denali.

"Oh no, we've still got a long fight to go," Bateman said. "This isn't over by any means. We still need people's help and donations to our group. It states in the letter from DNR if Denali gets the proper permits they can start land applying again and that's what our lawsuit is over, they have to have the proper permit. They're not shut down forever here, by no means, this is kind of a restraining order, a temporary hold until they get something else going."