Dow Chemical Co. (DOW) agreed to pay a $2.5 million civil
penalty to settle alleged air, water and waste violations at its
Midland, Mich., chemical manufacturing and research complex, the
Department of Justice and Environmental Protection Agency said
Friday.
Representatives of the chemical producer weren't immediately
available.
The government agencies said Dow also agreed to implement a
comprehensive program to reduce emissions of volatile organic
compounds and hazardous air pollutants from leaking equipment.
"This compliance program should serve as a model for industry
and will go a long way to assure future violations will not happen
again at this facility," said Ignacia S. Moreno, assistant attorney
general for the environment and natural resources division at the
Department of Justice. "Dow worked cooperatively with the
government to resolve this matter and in doing so set an example
for responsible compliance with our nation's environmental
laws."
The DOJ said Dow allegedly violated clean-air act requirements
for monitoring and repairing leaking equipment and failed to comply
with reporting and record-keeping requirements.
The government agencies also claim that Dow violated the
clean-water act's prohibition against discharging pollutants
without a permit in addition to allegedly violating the resource
conservation and recovery act's requirements for hazardous waste
generators.
The consent decree is subject to a 30-day comment period and
final court approval.
On Wednesday, Dow Chemical reported its second-quarter earnings
rose 73% as higher prices and emerging markets boosted revenue 18%,
masking higher commodity costs.
Shares were recently trading flat at $35.37.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283;
melodie.warner@dowjones.com