FOR IMMEDIATE RELEASE                                         ENR
TUESDAY, SEPTEMBER 3, 1996                         (202) 616-2765
                                               TDD (202) 514-1888
                                               EPA (617) 565-3383

The U.S. Department of Justice (DOJ) and U.S. Environmental Protection Agency (EPA) today announced the settlement of a case against the James River Paper Company for violations of the federal Clean Water Act (CWA), the Emergency Planning and Community Right-to-Know Act (EPCRA) and the Resource Conservation and Recovery Act (RCRA) at its former paper and pulp mill facilities in Berlin and Gorham, New Hampshire.

On Tuesday, a U.S. District Court in Concord, New Hampshire approved an Amended Consent Decree requiring James River and Crown Paper Co., the company that has owned and operated the facilities since August 1995, to pay a $200,000 penalty, conduct an assessment of all potential sources of illegal discharges to the Androscoggin River and evaluate the adequacy of current practices, procedures, and facilities to prevent unpermitted discharges. As part of the settlement, James River has expended $466,000 to reduce air pollution resulting from the release of sulfuric compounds at the Berlin pulp mill to levels lower than required by federal law.

"This settlement between the U.S., the James River Paper Company and Crown Paper Co. will result in environmental benefits that far exceed the value of a simple monetary penalty," said John DeVillars, regional administrator for EPA's New England office. "We are committed to creating innovative solutions to environmental problems that go beyond typical enforcement actions. By supplementing the monetary penalty with a requirement to redesign the Berlin facility, we are insuring a significant reduction in the release of air pollution."

"This settlement represents our commitment to punishing people who violate environmental laws through strict penalties," said Lois Schiffer, Assistant Attorney General for the Environmental and Natural Resources Division. "At the same time, we have worked with the company and the community to prevent future violations from occurring and to lessen the impact of past violations,"

The case arose out of a sulfuric acid spill that reached the Berlin, New Hampshire wastewater treatment plant in 1993. According to EPA, the company had failed to immediately report the spill and take action as required by EPCRA and RCRA. Acid from the spill incapacitated the municipal wastewater treatment plant by killing the bacteria necessary for proper functioning of the plant. As a result, the city exceeded limits set in its wastewater discharge permit.

While investigating the spill, EPA discovered that James River routinely violated limits specified by its National Pollution Discharge Elimination System (NPDES) permit. The company was found to be discharging wastewater from a laboratory to the sewer system that exceed permit limits for pH. EPA also found that James River violated permit limitations for BOD (biochemical oxygen demand -- a measure of available oxygen necessary to support aquatic life) and foam, and on at least 16 occasions had spilled untreated wastewater and other pollution to the Androscoggin River.

This is the second consent decree filed in this case. An earlier agreement in May, 1995, was opposed by the Cascade Flats Neighborhood Organization on grounds that it contained too few safeguards against future violations, and imposed inadequate monetary penalties. The original agreement was amended to require Crown to study past illegal discharges to the river and identify potential sources for other illegal discharges, and the Neighborhood Organization subsequently withdrew its objection.

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