A company agreed to pay a $1.5 million civil penalty and to implement corrective actions estimated to cost at least $2.6 million to resolve allegations of air and water pollution. The US Department of Justice (DOJ) announced the settlement on July 24, 2026. According to DOJ’s press release, the federal and state governments will each receive half of the penalty.

Missing Controls and Inadequate Leak Detection
DOJ alleges the company failed to install required controls on equipment used for removing impurities from the product and recovering materials for reuse. The company also had an inadequate inspection and monitoring program. Leaking valves went undetected and boilers did not have proper performance tests.

Required Upgrades
In addition to the civil penalty, the settlement will include a court order requiring the company to install the proper pollution controls, update its leak detection and repair procedures, increase the frequency of monitoring for leaks, and conduct performance testing on the boilers. A third party must review the updated leak detection and repair plan.

To mitigate the effects of past releases, the court order requires the company to install capping valves to help prevent leaks and to update its biological wastewater treatment system to capture pollutants before they volatilize.

To see the press release, which has a link to the proposed Consent Decree https://www.justice.gov/opa/pr/domtar-aw-llc-agrees-settlement-reduce-emissions-arkansas

Texas Environmental Superconference August 5-7
This year I shall present the case law update at the 38th Annual Texas Environmental Superconference in Austin, Texas, “A Star-Spangled Affair.” I look forward to seeing many of you in Austin August 5-7.