Ecology Center

Dow Chemical "Illegal" Sweetheart Deal Made Public

Large Watershed Sacrificed by Corrupt Environmental Agency

November 8, 2002

Contact:
Michelle Hurd Riddick, Lone Tree Council - 989-799-3313
Diane Hebert, Environmental Health Watch - 989 832-1694
Terry Miller, Lone Tree Council - 989-686-6386
Dave Dempsey, Michigan Environmental Council - 517-487-9539

An agreement that attorneys for the state earlier described as "illegal" and "fatally flawed" has been made public today, potentially relieving Dow Chemical Company of liability for massive contamination of one of the largest watersheds in the Great Lakes basin. The agreement could pave the way for citizens to be exposed to higher levels of a potent developmental and reproductive toxin. It could also set a precedent for the political manipulation of cleanup standards meant to protect public health. Dioxin, a persistent and highly toxic chemical was recently discovered in the flood plain for at least 22 miles downstream from Dow Chemical's global headquarters in Michigan.

Internal memos obtained two weeks ago by citizens in Saginaw County demonstrated that top management of the Michigan Department of Environmental Quality (DEQ) worked hand-in-glove with the Dow Chemical Company to craft the agreement. Despite outrage by citizens, contradictory advice from DEQ's own technical staff, and recommendations from the EPA to slow down, the draft order has now been made public, with a 30 day comment period before it is final. The order cements the DEQ's intention to relax cleanup standards before the change in Gubernatorial leadership in the state.

Russ Harding, Director of the MDEQ was recently quoted saying he hoped to reach an agreement before a new Governor would take office. Although entrusted with protection of the state's resources, he instead worried about the cost to Dow Chemical of a cleanup if the company were required to meet current state standards. "That would be a huge expense for them for what they think is not money well-spent."

"Are Midland residents and residents throughout the watershed going to sit back and allow their communities to be labeled as permanent 'dioxin hot spots,' sacrificed to Dow's political power?" asked Diane Hebert, a Midland resident, and leader of Environmental Health Watch. "Are they wiling to accept the potential for an increase in cancers, birth defects, developmental problems in our children, or damaged immune systems?"

Under the agreement released today:

A dioxin zone would be created in Midland, where permissible levels of dioxin in soils will be set at an interim level almost ten times higher than the health standard that applies in the rest of the state (with provisions that could relax that number further); and almost 100 times the standard in several other regions

The same lax standard could later be applied to highly contaminated soils along the floodplain of the Tittabawassee River in Saginaw County;

Key scientific decisions about the risk posed by dioxin and how to address it would be taken from DEQ scientists and delegated to a process that Dow could manipulate;

An important precedent could be set allowing politically powerful polluters to set more relaxed standards at individual contamination sites, subverting state law;

Dow could be relieved of potentially huge financial liabilities for fouling Midland and areas downstream to Saginaw Bay.

"This is the ultimate outrage in a long line of them," said Michelle Hurd Riddick, a Saginaw resident and a leader of Lone Tree Council. "Have they no shame? This corruption couldn't be more blatant, or more damaging to the public health and to democracy itself."

An earlier version of this agreement was reviewed by attorneys in the Attorney General's office. At that time, they had the following comments on the agreement:

"...the order is illegal..." and the order 1) unlawfully purported to relieve Dow of certain liability to the state, 2) arbitrarily and illegally established certain "action levels" for dioxin in soils ten times greater than DEQ's existing statewide standards under Part 201 through processes not in compliance with Parts 111 and 201, 3) unlawfully delegated DEQ regulatory authority to private parties, and 4) illegally substituted "dispute resolution" procedures involving a de novo trial in Midland County Circuit Court for the administrative and judicial processes specified in applicable law..."

The attorneys further noted:

"Regardless of DEQ management's own actual motivations for attempting to immediately conclude a written agreement with Dow on these issues, many outside observers will inevitably draw the inference that the proposed agreement is an "11th hour " and "sweetheart deal." Frankly, we are at a loss to understand why the DEQ would want to unnecessarily subject itself to such criticism."

"The citizens who have to live in this contamination will not stand for this," said River Watch Chairman John Taylor. "We live here, our children play here, we eat the food grown here. Our health and the health of our children is at stake. We will not rest until we get some justice and this mess is cleaned up."

"Is this going to be the legacy of John Engler? A totally corrupt process leading to an illegal deal that leaves Michigan's great watershed contaminated and Saginaw and Midland residents living and breathing a toxic mess?" said Terry Miller, leader of the Lone Tree Council.

This massive contamination came to light when citizens learned through FOIA that high levels of dioxin had been found for miles downstream from Dow's manufacturing facility. Subsequent testing confirmed that the watershed and flood plain downriver from Dow's headquarters are contaminated with elevated levels of dioxin. Levels range from background to more than 7,200 ppt. The state residential cleanup standard is 90 ppt. High levels have been found in public use areas and parks.