Michigan's Lawsuit Against Ox Paperboard Highlights Years of Alleged Violations

Attachments

Ox-Paperboard-Complaint

The Michigan Attorney General’s office has taken legal action to address what it describes as ongoing environmental violations at Ox Paperboard’s facility in White Pigeon, Michigan. The state’s lawsuit outlines major environmental concerns and aims to hold the company accountable for repeated pollution incidents and failure to comply with state and federal regulations. The lawsuit seeks three main objectives:

• Wastewater Lagoon Management: Ox Paperboard must properly close its wastewater lagoons to prevent further contamination.
• Cessation of Unauthorized Discharges: The state demands an immediate halt to unpermitted pollutant discharges into Michigan waters, including the nearby Pigeon River and local groundwater.
• Civil Fines and Penalties: For continued non-compliance, the state seeks to impose daily fines that could reach millions of dollars, citing violations of the Natural Resources and Environmental Protection Act (NREPA), specifically under Parts 31 (Water Resources Protection) and 22 (Groundwater Quality).

The case, filed in Michigan Circuit Court, calls attention to the need for stricter environmental compliance and seeks to address longstanding concerns at the White Pigeon facility.

Background: A History of Non-Compliance

Ox Paperboard acquired the White Pigeon facility in June 2020 despite knowledge of pre-existing environmental challenges at the site. The company is accused of exacerbating these issues by continuing to operate in violation of environmental standards:

• Unauthorized Discharges: Ox Paperboard allegedly released untreated wastewater without proper permits, contaminating groundwater and surface water, notably the Pigeon River.
• Contaminant Discharges: Wastewater samples reportedly show elevated levels of harmful substances, including PFAS (per- and poly-fluoroalkyl substances), ammonia, iron, sodium, lead, and cyanide—all of which pose potential risks to public health and ecosystems.
• Neglected Wastewater Lagoons: The company has allegedly failed to close wastewater lagoons by state laws, resulting in harmful seepage into surrounding areas.

These violations prompted Michigan’s Department of Environment, Great Lakes, and Energy (EGLE) to issue multiple Violation Notices over the past four years. Yet, the company has not implemented the required corrective measures.

Specific Violations Cited in the Lawsuit

In October 2020, shortly after Ox Paperboard acquired the White Pigeon site, EGLE issued a Violation Notice concerning the unauthorized discharge of approximately 800,000 gallons of untreated water mixed with raw paper stock. This substantial release immediately raised concerns about the company’s wastewater management practices. The unauthorized discharge began a pattern of non-compliance that would continue over the following years.

From 2021 to 2023, further Violation Notices highlighted ongoing environmental issues, including additional unauthorized discharges, inadequate stormwater management, and pollutants exposed at the site. Specific concerns documented by EGLE included sediment buildup, erosion risks, and improper sludge management. Ox Paperboard’s stormwater catch basins reportedly accumulated excessive sediment, which increased the risk of contaminant exposure in stormwater and threatened the health of the nearby Pigeon River.

Additionally, the state’s complaint outlines that Ox Paperboard’s failures constitute violations of the federal Clean Water Act, given that Michigan administers its National Pollutant Discharge Elimination System (NPDES) permit program under the Environmental Protection Agency (EPA) authority. According to the lawsuit, Ox Paperboard neglected to develop a pollution prevention plan, did not correctly contain wastewater, and repeatedly ignored stormwater management standards required by its NPDES permit. These alleged failures violate Michigan’s environmental laws and place the facility in breach of federal standards, highlighting the implications of Ox Paperboard’s non-compliance.

Environmental and Health Impacts of the Violations

The complaint highlights the environmental and health risks stemming from Ox Paperboard’s alleged actions:

• PFAS Contamination: PFAS, also known as “forever chemicals,” are synthetic substances that persist in the environment and can accumulate in the human body. Linked to cancer, liver damage, and immune system effects, PFAS were detected in groundwater monitoring wells near the site, raising significant health concerns for nearby communities.
• Threats to Public Health and Wildlife: The Pigeon River and surrounding groundwater sources are vital for local water supply, recreation, and wildlife. The alleged contamination threatens public health and compromises water quality, affecting recreational users and the local ecosystem. Wildlife and fish habitats could be disrupted by elevated levels of toxic substances, further endangering the region’s biodiversity.

Michigan’s Demands and Legal Remedies

In response to these violations, Michigan’s lawsuit seeks several key legal remedies:

• Permanent Injunctions: Michigan requests a court order to prevent Ox Paperboard from further illegal discharges permanently and to require immediate action to close its wastewater lagoons according to environmental standards.
• Daily Civil Fines: The state is asking for daily fines ranging from $2,500 to $25,000 per day of violation. Given EGLE's extensive history of non-compliance, these penalties could accumulate to millions of dollars.
• Cost Recovery: The lawsuit also demands that Ox Paperboard cover the state’s attorney fees, litigation costs, and all enforcement-related expenses to address the facility’s violations. This provision ensures that taxpayers do not bear the costs of prolonged enforcement.

Continuous Non-Compliance and Escalated Enforcement

The state’s complaint underscores a pattern of non-compliance, with Ox Paperboard failing to address or rectify environmental violations despite repeated warnings. In addition to the initial 2020 Violation Notice, EGLE issued notices in 2021, 2022, and 2023, each documenting further environmental and regulatory concerns. These violations included:

• Persistent unauthorized discharges of wastewater,
• Exposed pollutants in stormwater runoff,
• Improperly managed wastewater lagoons, and
• Failure to meet the standards of the Clean Water Act.

The lawsuit also emphasizes that Michigan provided multiple opportunities for Ox Paperboard to comply with environmental standards, but the company’s response remained inadequate. The state’s escalated enforcement seeks to remedy current issues and prevent future environmental harm by holding Ox Paperboard accountable for its actions.

Broader Implications for Michigan’s Environmental Accountability

Michigan’s legal action against Ox Paperboard is a testament to its commitment to protecting its natural resources. The state reinforces its stance on corporate accountability and environmental stewardship by pursuing litigation. This case also reflects the broader regulatory landscape, where state agencies are increasingly willing to take legal action against companies that fail to meet environmental obligations, even after repeated violations and warnings.

The outcome of this lawsuit may set an important precedent for how Michigan and potentially other states approach enforcement actions to safeguard water resources from industrial pollution.