Key Takeaways

  • Domtar has agreed to settle civil allegations with the U.S. Department of Justice related to violations of the Clean Air Act and the Arkansas Water and Air Pollution Control Act at its kraft pulp and paper mill in Ashdown, Arkansas.
  • A $1.5 million penalty will be split between Arkansas and the federal government. Domtar will also undertake projects valued at an estimated $2.6 million to address excess emissions at its operations and correct "inadequate inspection and monitoring practices."
  • In an emailed statement, Domtar said it has completed some of the required upgrades and called the settlement a "permanent resolution of issues identified during a 2019 inspection."

Deep Dive

The DOJ filed the lawsuit on behalf of the U.S. Environmental Protection Agency and the Arkansas Department of Energy and Environment's Division of Environmental Quality. They alleged Domtar failed to install proper pollution control equipment on its brown stock washers as required by federal and state regulations.

Brown stock washers are used to separate black liquor from pulp fibers during the papermaking process, and without the necessary controls, they can leak hydrogen sulfide into the air, according to the DOJ. The DOJ noted that hydrogen sulfide is harmful to human health and has a strong rotten egg odor.

The complaint also alleged Domtar failed to comply with required inspection and monitoring rules. It cited 17 instances where inspections were not conducted within the required 30-day timeframe.

Additionally, the DOJ said Domtar failed to conduct adequate performance testing on two of its boilers. As a result, it is unclear how much excess hazardous air pollutants, such as volatile organic compounds, methanol, carbon monoxide, and chlorine compounds, were emitted from the equipment.

Domtar said via email that it has completed upgrades to its brown stock washers as part of the settlement. It also agreed to implement work practice changes, continuous monitoring, and recordkeeping.

The DOJ acknowledged that Domtar "is taking the necessary steps to ensure its systems can control pollutants from its brown stock washers." The company agreed to install closed valves to help prevent leaks of volatile organic compounds and hazardous air pollutants, and upgrade its biological wastewater treatment system to capture hazardous air pollutants and volatile organic compounds before they are emitted. Domtar was also required to hire a third party to review and revise its leak detection and repair program to ensure compliance with environmental regulations.

The DOJ has filed a consent decree with the U.S. District Court for the Western District of Arkansas, which is subject to a 30-day public comment period.

Separately, residents of Kingsport, Tennessee, filed a federal class action lawsuit against Domtar in March, complaining that its recycled paperboard mill and wastewater treatment system there have continuously failed to control odor emissions.

At the time the lawsuit was filed, the company was already in the process of installing an anaerobic digester as a wastewater treatment measure to reduce potential odors; the facility is expected to be operational next year. In May, Domtar responded to the complaint, denying it released odor emissions that harmed the community and stating the lawsuit should be dismissed.