Environment

SC industry that sparked thousands of odor complaints fined $1.1 million by EPA

The federal Environmental Protection Agency has fined New Indy Catawba LLC of Catawba, SC, $1.1 million.
The federal Environmental Protection Agency has fined New Indy Catawba LLC of Catawba, SC, $1.1 million. (Rock Hill) Herald file photo

The U.S. Environmental Protection Agency has fined a South Carolina industry $1.1 million and ordered the company to clean up its act after receiving tens of thousands of complaints about powerful odors that sickened neighbors living near the plant.

In a news release late Wednesday afternoon, the EPA said New Indy Catawba LLC has agreed to make improvements at the plant to prevent hydrogen sulfide from being released into the air at levels “that endanger people’s health.’’

The EPA’s action follows an emergency order last May telling the company to address problems at the York County plant.

“EPA took swift action earlier this year by issuing an emergency order to New Indy to monitor and reduce hydrogen sulfide air pollution from their Catawba facility,” said Larry Starfield, acting assistant administrator for the EPA’s Office of Enforcement and Compliance Assurance. “Today’s proposed settlement ensures that surrounding communities will be protected from unlawful pollution from this facility through mandatory long-term improvements designed to ensure cleaner air, which all Americans deserve.”

The $1.1 million fine and order to control pollution is subject to public comment and is not final. The public will have 30 days to comment. But the enforcement action is likely to become final if no other significant information surfaces during the 30-day comment period. A federal judge must sign off on the enforcement action.

New Indy issued a statement after 10 p.m. Wednesday, saying it would pay the fine and make improvements.

“New-Indy worked with the EPA and the U.S. Department of Justice to resolve this matter and will comply fully with the agreement,” said Tony Hobson, the mill’s manager. “The mill has cooperated with regulators throughout the process, implemented a long list of improvements, and is grateful for this positive and constructive outcome.”

A maker of pulp and brown paper, New Indy has been sued by neighbors who say they have been hurt by plant pollution. People have lodged as many as 30,000 complaints about odors near New Indy, according to one news report. They were subject to “noxious odors, nausea, irritation of the eyes, nose and throat,’’ and other health effects, according to the lawsuit. Residents say the smell was akin to a rotten egg odor.

Betty Rankin, a 76-year-old Rock Hill resident who lives on a farm several miles from the plant, has given state regulators an earful. She said constant air pollution has made her feel so sick she needs an inhaler and a mask. The air pollution started late in 2020 and worsened early in 2021, she said.

“I think a year of my life is worth more than $1 million,’’ she said, questioning whether the $1.1 million fine is adequate

Dick Harpootlian, a Columbia lawyer who is among a group of attorneys representing area residents, said he’s not sure the EPA enforcement action goes far enough in controlling pollution, but he has not had time to fully digest the EPA’s proposed settlement with New Indy.

“It looks like it doesn’t deal with all of the chemicals dispersed to the atmosphere,’’ said Harpootlian, a Democratic state senator from Richland County. “We are going to look hard at that.’’

Fellow attorney Tommy Pope, a Republican state legislator, called the EPA fine “a mere slap on the wrist, given the profits New Indy has made by their non-compliance and ongoing pollution.’’

Complaints began to surface in January and February 2021, less than a year after New Indy took steps to change its process from producing bleached white paper to making unbleached paper. The drumbeat of complaints led to scrutiny from the EPA and the S.C. Department of Health and Environmental Control.

In spring 2020, the company had replaced some existing equipment with “state-of-the-art” equipment to make container board, according to a company corrective action plan. But problems arose. After conducting an investigation, the company concluded that the plant’s wastewater treatment system most likely caused odors at the mill, the plan said.

New Indy’s Catawba plant has been in business under various owners since 1959, but has had high profile problems recently.

According to the Reuters news service, the plant has become one of the nation’s dirtiest polluters since it was acquired by an investment group led by Robert Kraft, who owns the New England Patriots NFL team. Schwarz Partners LP and Kraft Group Inc. acquired the facility in 2019, Reuters said. The deal with Resolute Forest Products was for $300 million, the news service said.

In April, the EPA found hydrogen sulfide levels about three times higher than the levels that can give exposed people headaches and make them nauseated, Reuters reported. Hydrogen sulfide is a flammable gas that smells like rotten eggs, the EPA said Wednesday.

The EPA’s proposed enforcement settlement says New Indy must operate a steam stripper unit to control toxic air pollution. The company also must monitor and treat sulfur-containing material that is sent to a wastewater treatment system and it must improve the wastewater system, according to the order.

New Indy’s statement said the company already is making progress.

Air pollution monitors on the property’s boundary have not detected excess hydrogen sulfide since June, other than a brief period in early September, the company said. In addition to the steam stripper requirements, New Indy will install a “black liquor’’ containment system to prevent overflows to the wastewater treatment system. It also will install and maintain a carbon filtration system and continue monitoring for hydrogen sulfide, the company’s statement said.

This story has been updated with more detail about the company from Reuters, information from the EPA about enforcement actions and a statement from New Indy. Rock Hill Herald staff writer Andrew Dys contributed.

This story was originally published December 29, 2021 at 6:00 PM.

Sammy Fretwell
The State
Sammy Fretwell has covered the environment beat for The State since 1995. He writes about an array of issues, including wildlife, climate change, energy, state environmental policy, nuclear waste and coastal development. He has won numerous awards, including Journalist of the Year by the S.C. Press Association in 2017. Fretwell is a University of South Carolina graduate who grew up in Anderson County. Reach him at 803 771 8537. Support my work with a digital subscription
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