March 3, 2003

BUSINESS MUST PAY THE PRICE: FEDERAL JUDGE FINES SOUTH GEORGIA COMPANY $1 MILLION FOR POLLUTING OCMULGEE RIVER

Chief US District Court Judge Dudley H. Bowen has fined the Lumber City based Amercord, Inc. $1 million for 56 violations of its permit to discharge wastewater into the Ocmulgee River. The Altamaha Riverkeeper (ARK) organization, based in Darien, Georgia, brought this case against the tire cord manufacturer in 2000 after citizens reported a foul smelling milky discharge entering the river.

Attorneys from the Georgia Center for Law in the Public Interest and Stack & Associates filed suit on ARK's behalf asserting that the company had a history of violating the Clean Water Act by dumping excessive amounts of Copper, Zinc, Lead, and Cyanide into the Ocmulgee River. In March 2001, Judge Bowen agreed with ARK ruling that the company had continuously violated the law.

Since filing the Complaint, Amercord has claimed bankruptcy although the Court found no record supporting that claim. GMAC Business Credit LLC has loaned Amercord millions of dollars and currently has possession of all of Amercord's secured assets.

Following an investigation into the violations by a Special Master appointed by the Court, the Court imposed a fine averaging $18,000 per violation and directed that Amercord immediately comply with its permit, file appropriate reports, inform the Altamaha Riverkeeper if production commences at the site or if the site is sold, and employ with the advice and consent of ARK, an independent investigator to evaluate and identify existing and potential harm to the Ocmulgee River caused by the facility.

In supporting the imposition of a high penalty, the Court found that the violations were "severe" and that the company made minimal effort to comply with the permit before the suit was filed.

"This case is a mini-Enron instead of pensions, it is the public's health that is at stake. But here in Georgia, we won't tolerate companies who cut corners to save a buck and then, when the books don't balance, expect the public to pay the price," said Justine Thompson, Director of the Georgia Center for Law in the Public Interest. "This case sends an unmistakable message that polluting is not part of doing business in Georgia."

While the Court found that Amercord violated the Clean Water Act for years, there is no record that the Environmental Protection Division (EPD) ever took any action to stop Amercord from discharging excessive chemicals into the River. Over the years, Amercord sent reports to EPD admitting that it had violated its permit. These reports formed the basis for the Court's ruling that Amercord had violated the Clean Water Act.

"The real culprit here may be EPD. I am just an average citizen and I knew that something terrible was going on. EPD was getting reports for years that large amounts of cyanide, zinc and lead were going into the river illegally yet did nothing about it," said Altamaha Riverkeeper James Holland. "The people of Georgia want to know why." Holland initially investigated the Amercord pipe after calls from citizens who canoed the Ocmulgee and expressed concerns about the discharge.

The Altamaha Riverkeeper organization is a non-profit organization working to protect and restore the habitat, water quality and flow of the mighty Altamaha from its headwaters in the Ocmulgee, the Oconee & the Ohoopee to its terminus at the Atlantic Ocean. ARK has recently hired an Ocmulgee Riverkeeper and is in the process of establishing a Macon office (478- 722-0007). ARK's main office is located in Darien, Georgia (912- 437-8164). Additional information is available at www.Altamahariverkeeper.org. Tax-deductible donations to support the Ocmulgee Riverkeeper and the Altamaha Riverkeeper work can be sent to: ARK, P.O. Box 2642, Darien, Georgia 31305. ARK was represented by the Georgia Center for Law in the Public Interest and Stack & Associates. The Georgia Center for Law in the Public Interest is a non-profit public interest law center dedicated to empowering Georgia's citizens by promoting the development and effective implementation of public policy and laws to protect our natural resources. More information about the Center is available at www.cleangeorgia.org. Stack & Associates is an environmental law firm with offices in Savannah and Atlanta. More information about the firm is available at www.stackenvirolaw.com.