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The AltEn plant near Mead, which the state shut down earlier this year, is shown on Aug. 25. Along with the toxic solids spread on land surrounding the site, the environmental cleanup is also focused on removing pesticides from wastewater on the site.
Several agricultural industry giants that formerly supplied AltEn with unplanted seed are now suing the ethanol company for creating an environmental crisis they say has cost millions of dollars to clean up.
In a pair of lawsuits filed in U.S. District Court in Omaha on Tuesday, five of the six members of the AltEn Facility Response Group accuse the biofuel plant near Mead of violating state and federal law governing how pesticide-treated seed should be handled.
The complaints — one filed jointly by Corteva, AgReliant, Beck’s Superior Hybrids and Winfield Solutions; the other filed individually by Syngenta — name AltEn and other companies operated by Tanner Shaw at the site, as well as general manager Scott Tingelhoff.
Bayer, the sixth company in the coalition, is not part of the legal filing, but is considering its legal path even as it remains “committed to our participation as a member of the (facility response group),” a spokeswoman said.
AltEn, unlike other ethanol plants that used harvested grain, produced the gasoline additive ethanol with manufactured seeds coated with pesticides that went unsold or could no longer be planted. It eventually became the final destination for nearly all of the discarded seed in North America.
The plant ran afoul of state ag and environmental regulators not long after it started operations, however. The solid and liquid byproducts of AltEn’s unique ethanol manufacturing process were discovered to contain high concentrations of pesticides, and deemed a waste product by the state.
The former suppliers to AltEn said the facility’s failure to properly handle, manage and store the discarded seed, as well as the waste products it produced, broke state and federal laws, the permits it obtained from the state, as well as the agreements they signed with AltEn.
“These and other failures led to the release of untreated wastewater from a tank at the AltEn plant that flowed onto neighboring properties, the stockpiling of thousands of tons of wet cake byproduct, and the mismanagement of millions of gallons of wastewater in lagoons perilously close to failure,” they said.
The lawsuits shed more light onto the relationship between AltEn and its suppliers, which agreed to send discarded seed to the plant on the pretense that it would be disposed of in a safe and effective manner.
AltEn had obtained a permit from the Nebraska Department of Environment and Energy to use treated seed in ethanol production in 2012, the complaint filed by Syngenta states.
Officials with the biofuel company also represented that AltEn “had the requisite experience, knowledge and expertise, suitable facilities and qualified personnel” to dispose of the seed properly, according to the lawsuit.
Corteva subsidiary Pioneer Hi-Bred’s memorandum of understanding with AltEn stipulates the ethanol plant “is willing to accept the seed and is prepared to use the seed in compliance with all applicable laws,” as well as the terms of its permit.
AgReliant’s agreement with AltEn lays out that the ethanol plant “shall see that all appropriate safety and handling precautions are followed to ensure the safety and well-being of persons, property and the environment.”
The companies charge AltEn failed to live up to its end of the agreement in multiple ways.
They point to AltEn’s lack of plans for how to dispose of the wet cake, the “clear defiance” shown by the company in stockpiling an estimated 84,000 tons of the solid byproduct at the facility, as well as the “stop-use and stop-sale order” issued by the Nebraska Department of Agriculture.
The complaints also outline the environmental violations against Green Disposal, another company owned by Shaw that operated a biochar unit at the site, and the damaged and overfilled lagoon system, which led the Department of Environment and Energy to order the plant to close in February 2021.
After the company completed its shutdown on Feb. 8, 2021, a cold snap caused a pipe on a 4 million-gallon digester tank to burst, releasing a slurry of manure from the neighboring Mead Cattle — formerly owned by Shaw — and ethanol byproducts several miles downstream.
Following the release, the Department of Environment and Energy contacted several seed companies to request their assistance in responding to the environmental conditions.
At the same time, AltEn began laying off its workers and removing records from the site, including drawings, procedures and maintenance records, while also leaving “large quantities of hazardous chemicals in tanks or piping within” the facility, according to the lawsuit.
“(AltEn) abandoned the site and proceeded to dissipate their assets to avoid any responsibility for the conditions they caused,” the companies said, forcing the former suppliers to pay millions of dollars to date to remediate the site.
The “systemic transfer” of assets, the companies allege, included the selling of Mead Cattle to the Texas-based Champion Feeders; Green Disposal’s indication that it planned to sell its biochar equipment; and the sale of more than 80 pieces of equipment, including trucks, forklifts, piping and electrical conduit, at auction since last summer.
Members of the Perivallon Group, a group of residents and researchers that has coordinated response to the environmental crisis, have raised concerns about the sale of equipment as a precursor to AltEn declaring Chapter 11 bankruptcy — an allegation an attorney for the company denied in an interview with the Journal Star earlier this month.
None of the proceeds from the sale have been used to reimburse the seed companies for the cost of cleaning up the AltEn site, the lawsuit states, nor have they been used to pay the costs of maintaining the property — mowing, weed control, snow removal or site security — or to pay utility bills or leases for office buildings and equipment.
In a statement, Corteva said it was “frustrated with how AltEn handled materials at its own site and its failure to follow label requirements and specific safe-handling procedures.”
“To date, AltEn itself has not participated in any actions to stabilize or address the environmental conditions at its own site, and in some cases, has hindered the (facility response group’s) work,” Corteva said in a statement, adding it will continue its voluntary remediation of the site.
Stephen Mossman, a Lincoln attorney representing AltEn, declined to comment on the lawsuits.
The lawsuits ask for a jury trial to award compensation and damages, declare the transfer of assets void, and for an injunction preventing AltEn from further transferring any property.
AltEn is also subject to an ongoing lawsuit filed by the Nebraska Attorney General's Office on March 1, 2021, for violations of state environmental regulations.
Each violation carries a potential fine of $10,000 per day for each of the 18 causes of action listed in the lawsuit.
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
Mead AltEn Ethanol plant. COURTESY PHOTO
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million-gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
A burst pipe late last week in a 4 million-gallon digester tank at the AltEn Ethanol plant near Mead sent liquid manure and thin stillage, a byproduct of the ethanol manufacturing process, into waterways and culverts up to 4 miles from the plant.
The Department of Environment and Energy ordered AltEn Ethanol near Mead to shut down in early February, dispose of millions of gallons of contaminated wastewater on the site and repair lagoons in violation of state regulations.
Unlike other ethanol plants, AltEn used treated seed instead of harvested grain for its fuel production. The byproduct from that process and wastewater near the plant have been found to carry levels of pesticides and fungicides above limits set by the Environmental Protection Agency.
AltEn Ethanol has been the subject of dozens of complaints since it reopened near Mead in 2015 related to an odor coming from the byproduct of its ethanol process, seen here at the beginning of the month. The byproduct has been found to carry levels of pesticides and fungicides above limits set by the Environmental Protection Agency.
AltEn ethanol plant is seen in this photo, Thursday, Feb. 4, 2021.
AltEn shut down its operations on Feb. 8 after an order by the Nebraska Department of Environment and Energy. The state found three lagoons on the site were contaminated, badly damaged and holding more wastewater than permitted.
AltEn is unique among ethanol plants in that it uses seeds pre-treated with pesticides to produce ethanol instead of harvested grain. It ceased operation on Feb. 8 after a state order.
MEAD, NEB. - 02/04/2021 - A view of Mead, including the grain elevators with Frontier Cooperative, Thursday, Feb. 4, 2021. JUSTIN WAN, Journal Star
Emptied treated seed bags are stacked at the AltEn company in this photo taken in April 2019 during a Nebraska Department of Environment and Energy inspection. The ethanol plant near Mead used the seed to produce ethanol and the byproduct from the process to create soil conditioner sold to area farmers.
AltEn Ethanol has been the subject of dozens of complaints since it reopened near Mead in 2015 related to an odor coming from the byproduct of its ethanol process. The byproduct has been found to carry levels of pesticides and fungicides above limits set by the Environmental Protection Agency.
A pipe burst on a 4 million-gallon digester tank at the AltEn Ethanol plant near Mead late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
A notification of environmental concern inspection report from Feb. 12, 2021, noted "flow, dark water and odor," in water pictured on University of Nebraska-Lincoln property. A pipe burst on a 4 million-gallon digester tank at the AltEn Ethanol plant near Mead late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy,
University of Nebraska-Lincoln personnel using a backhoe to place bales and plastic to dam the culvert on UNL property near Mead after a pipe burst on a 4 million-gallon digester tank at the AltEn Ethanol plant late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
A notification of environmental concern inspection report from Feb. 12 noted "flow, dark water and odor," in water pictured on UNL property after a pipe burst on a 4 million-gallon digester tank at AltEn Ethanol near Mead, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
Water pools west of the leaking digester at Mead AltEn Ethanol on Feb. 12 after a pipe burst on a 4 million-gallon digester tank late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
A depth finder measures flow from a leak on Feb. 12 after a pipe burst on a 4 million-gallon digester tank at AltEn Ethanol near Mead late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
Mead AltEn Ethanol employees use trash pumps to transport water into an emergency lagoon on Feb. 12. A pipe burst on a 4 million-gallon digester tank at the plant late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
Mead AltEn Ethanol employees work to install a trash pump to transport water into an emergency lagoon on Feb. 12. A pipe burst on a 4 million-gallon digester tank at the plant late last week, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
Water exits the damaged area (blue arrow) of a 4 million-gallon digester tank at AltEn Ethanol near Mead on Feb. 12, releasing waste material into the waterways and culverts more than 4 miles from the plant, according to the Nebraska Department of Environment and Energy.
A crew works to remove waste material from a culvert southeast of AltEn Ethanol on Tuesday in Saunders County.
Saunders County Supervisors David Lutton (from left), Doris Karloff and Craig Breunig listen to Saunders County Attorney Joe Dobesh (not seen) speak about communications with state officials about AltEn Ethanol in February in Wahoo.
An earthen dam blocks the flow of waste material in a waterway southeast of AltEn Ethanol last week in Saunders County.
Saunders County Attorney Joe Dobesh talks about his communication with state officials about AltEn Ethanol at a Saunders County Board of Supervisors meeting in late February in Wahoo.
A crew works to remove waste material from a culvert southeast of AltEn Ethanol on Tuesday in Saunders County.
The Saunders County Board of Supervisors listens to Saunders County Attorney Joe Dobesh (not pictured) speak about communications with state officials about AltEn Ethanol on Tuesday during the board's meeting in Wahoo.
A crew works to remove waste material from a culvert southeast of AltEn Ethanol on Tuesday in Saunders County.
Saunders County Supervisors David Lutton, Doris Karloff and Craig Breunig listen to Saunders County Attorney Joe Dobesh speaks about communications with state officials about AltEn Ethanol on Tuesday during the board's meeting in Wahoo.
The AltEn plant near Mead, which the state shut down earlier this year, is shown on Aug. 25. Along with the toxic solids spread on land surrounding the site, the environmental cleanup is also focused on removing pesticides from wastewater on the site.
This 2021 Google Maps image shows a location north of Mead where AltEn's distiller's grains were stockpiled in a cornfield.
Evelyn and Stan Keiser had hoped to build a cabin on their property near a pond created by Stan Keiser's grandfather. The pond, once teeming with wildlife, is now a dead zone after pesticide-contaminated wastewater from the AltEn ethanol plant near Mead flowed downstream. The Keisers were also recently notified that their private well, which provides their drinking water, contains contaminants.
Pesticide contaminated water that has run off from the AltEn ethanol plant near Mead has been responsible for rendering Stan and Evelyn Keiser's farm pond a dead zone.
Curtis Pearson of Mead talks Thursday during a meeting at Mead Covenant Church about the troubled AltEn ethanol plant near the town.
Stan Keiser talks Thursday during a meeting at Mead Covenant Church about the troubled AltEn ethanol plant near the town.
Reach the writer at 402-473-7120 or cdunker@journalstar.com.
Get the latest in local public safety news with this weekly email.
Chris Dunker covers higher education, state government and the intersection of both.
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The Appropriations Committee did not include any level of funding to keep a study of the environmental and health impacts stemming from AltEn in the budget packages it sent to the floor for debate.
A survey designed by the University of Nebraska Medical Center to measure the perceived health risks related to AltEn has been put online to help reach a greater number of people living in Saunders County.
The AltEn plant near Mead, which the state shut down earlier this year, is shown on Aug. 25. Along with the toxic solids spread on land surrounding the site, the environmental cleanup is also focused on removing pesticides from wastewater on the site.
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