Sean C. Morgan
Of The New Era
The conditional use permit for Western Renewable Resources to operate its 24th Avenue business expired at the beginning of the month, and an Oregon Department of Environmental Quality official said the agency is preparing a formal penalty against the company.
Western Renewable Resources had a two-year limit for a recycling operation that used cardboard waste fibers from Weyerhaeuser, which contain some plastics, for animal bedding and hog fuel.
The DEQ ordered the operation to stop as of March 30 when it declared the fibers hazardous waste and alleged that Western Renewable was operating a waste transfer station on former Willamette Industries mill property off the north end of 24th Avenue. The DEQ ordered the fiber be removed from the property by the end of August.
The Sweet Home Planning Commission voted to revoke the conditional use permit in May. The revocation gave Western Renewable until Nov. 6, the expiration date of the permit, to remove the material from the site.
The business continued producing its animal bedding product while shutting down the rest of the operation.
In the meantime, Western Renewable has filed a lawsuit seeking a declaratory judgment from a Linn County Judge. Western Renewable is asking the judge to recognize the stored fibers as inventory.
Dan Desler, managing partner, argues that the fibers are collateral on a loan from Umpqua Bank. Umpqua filed a lawsuit against Western Renewable in September attempting to collect on the loan, which it alleges is in default. Umpqua denies that the fiber is collateral.
As of Nov. 6, “he is no longer to conduct business at that site,” Community Development Director Carol Lewis said, but the storage is still tied up with DEQ and the courts.
Removing the material is more complicated than other cases, Lewis said, and the city will work with Desler to get it off the property. In the meantime, the city is waiting to see what happens with DEQ and the lawsuit.
Ideally, when a business shuts down, the materials involved in the production are removed, Lewis said.
DEQ Solid Waste Analyst Julie Berndt, who is handling the Western Renewable case, said “We’ve never been served (on the lawsuit), so we really don’t know much about it.”
Linn County Circuit Court records show the lawsuit was filed in September.
Desler told The New Era on Monday that the DEQ would be served soon in the case.
Desler responded on Nov. 10 to a notice from Lewis that the conditional use permit expired.
“It is truly unfortunate that at this historical point of presidential change that we are not leading President Barack Obama’s and Governor Kulongoski’s ‘waste-to-energy’ agenda toward U.S. energy independence,” he wrote.
“The truth is that in spite of our good intentions, 15 people have lost their jobs, and the company has endured economic hardship. We are not pointing fingers and are committed to being part of the solution, not part of the problem.
“Going forward, we intend to take our story to the public, the political process and have written the governor in hopes that change will occur in that state agencies will modify their behavior and administrative process for the social and economic good of our state, counties, cities and its citizens.”
In the letter, Desler said that all processing on the site has been terminated. Only loading and hauling to an off-site location will occur. The 24th Avenue gate has been locked, chained and posted “no trespassing.”
The company believes it has valid sales options for the material on the site subject to the court’s decision on the classification of the material, Desler said.
In the meantime, Berndt said, the case has been forwarded to the DEQ’s enforcement section for possible civil action against Western Renewable.