Milwaukee Journal Sentinel

BARRELS OF WOE

Environmen­tal issues plague reconditio­ning industry

- RAQUEL RUTLEDGE AND RICK BARRETT MILWAUKEE JOURNAL SENTINEL

Michael Griffin was 200 yards from the steel drum company in St. Francis and knew something was wrong. He could smell it.

It was November 2015 and the state air management engineer was on his way to a drum refurbishi­ng plant south of Milwaukee that had been around for decades. Griffin was following up on an odor complaint. “The intensity (of the smell) increased to the point I felt a burning sensation in the back of my throat and sinuses,” Griffin later wrote in a letter to the plant manager. “The odors were significan­t, obnoxious and objectiona­ble.”

Griffin suspected the smells violated state environmen­tal laws forbidding “malodorous emissions.”

When Griffin returned later that day, he found blue smoke wafting from the drum oven. He also spotted rust-colored discharge on the roof of the building indicating the smoke stack “may be dischargin­g particulat­e matter to a degree that is excessive.”

Three more complaints would be filed the following month.

The company, Mid-America Steel Drum, had been acquired a couple years earlier by a joint venture — a group of similar operations spanning four states — majority-owned by industrial packaging giant Greif Inc.

Called Container Life Cycle Management, or “Click’m,” the venture operates six plants; three in the Milwaukee area and others in Indianapol­is, Memphis, Tenn., and Arkadelphi­a, Ark.

Inspectors with the Wisconsin Department of Natural Resources had been to the St. Francis plant before. For years, the plant had been owned by Kitzinger Cooperage, and state regulators had repeatedly cited the company for failing to properly control and monitor air emissions.

Officials with the Milwaukee Metropolit­an Sewerage District, which oversees wastewater, had been there — finding its own violations — as well.

An investigat­ion by the Milwaukee Journal Sentinel uncovered problems with Greif’s CLCM facilities in four states and other drum reconditio­ning operations nationwide whose practices have posed risks to workers, neighborho­ods and the environmen­t. In some cases, the problems have persisted for decades.

Dangerous chemicals have been washed down floor drains, plumes of smoke from unknown chemical reactions have been released into neighborho­ods and fires have erupted at the plants, fouling the air and posing a danger to nearby homes, the investigat­ion found.

Agencies entrusted to protect workers and the public have been ineffectiv­e at preventing problems, with federal, state and local authoritie­s all reducing fines to nominal amounts and failing to address egregious hazards. In some cases, penalties can be steep, typically when cleanup costs are involved.

The Journal Sentinel’s findings are based on 16 hours of audio recordings from a whistle-blower, hundreds of pages of government reports and dozens of interviews with workers, experts and others.

Greif officials declined requests from the Journal Sentinel for interviews.

In a written response to a question about sites that have been cited for wastewater violations, Greif said it works with independen­t labs to test the water and has “made significan­t management process improvemen­ts at the reconditio­ning facilities to comply with all applicable regulation­s.” The company said in late 2016 it appointed an environmen­tal officer to “facilitate and oversee continued process improvemen­ts.”

***

Residents of St. Francis, Cudahy and Milwaukee’s Bay View neighborho­od donned surgical masks and protective white suits in 2005 in a protest against odors from the Kitzinger drum reconditio­ning plant.

Carrying signs that read “Ask about the Stench,” the pickets said they wanted to make prospectiv­e buyers of nearby condominiu­ms aware of the problem.

Sometimes the odor was like “Lemon Pledge.” Other times it was more like a urinal puck, recalled St. Francis Ald. Donald Brickner. It depended on what type of drums were being processed.

“When the wind was right, it was offensive,” he told the Journal Sentinel.

In 2010, three years before Greif’s CLCM group acquired the plant, Kitzinger agreed to pay $220,000 in state fines for emissions violations between 2004 and 2008.

In Milwaukee, the CLCM plant on the city’s north side is part of a small stretch of industrial operations along one side of Cornell St., near W. 24th St. just south of Hampton Ave. Modest homes line the other side of the street.

CLCM’s safety manager, Steele Johns, told safety consultant­s what happened at the plant when employees washed the chemical residue from large used containers:

“Whatever was left in there is going straight into the sewer,” Johns said, adding: “We have no permits.”

In late 2015 and throughout much of 2016, Johns spoke candidly to the consultant­s, not knowing that one of them was recording the conversati­ons and would later become a whistle-blower.

Johns described what had happened when workers drained an assortment of leftover chemicals into one 275-gallon container.

“We were shooting jet black smoke out of those big five-foot fans directly at the neighborho­od, for 20 minutes,” Johns said.

Johns also said the plants shipped barrels full of the unknown mixed chemicals — a “witches brew,” he called them — to landfills, labeling them “non-hazardous” waste.

That’s not all. He said the plants that have furnaces for burning chemical residue from the steel drums weren’t reporting accurate emissions to regulators.

“These are the realities I’m dealing with,” he said in the recordings.

Will Kramer, a safety consultant with Iowabased Safety Management Services Co., spent close to a year recording conversati­ons with Johns and other managers and employees in Greif’s CLCM plants, and documentin­g their activities.

In June 2016, he filed a whistle-blower complaint with the U.S. Securities and Exchange Commission, detailing his findings and alleging that Grief misled investors by not disclosing its environmen­tal risks and liabilitie­s.

A few months later, after concluding the company was not addressing the problems, Kramer shared the informatio­n and 16 hours of audio recordings with the Milwaukee Journal Sentinel.

‘Nasty reputation’

The drum reconditio­ning industry has a troubled legacy that dates back decades, reaching coast to coast.

Evidence can be found in court records — and also in rural and urban land-

scapes pocked with leaky barrels.

In 2013, U.S. Environmen­tal Protection Agency officials found several thousand chemical containers abandoned at Superior Barrel and Drum Co., a drum reconditio­ning facility in rural New Jersey, which is not part of the CLCM group.

Many had holes, missing tops, were bulging and leaking their contents into the ground, according to the EPA.

Investigat­ors sampled the contents of the drums and plastic containers at the 5-acre site, revealing hazardous materials and carcinogen­s including flammable chemicals, benzene, toluene, trichloroe­thylene, lead and polychlori­nated biphenyls.

Pollution at the site and surroundin­g wetlands raised concerns about the water supply for nearby residents, who for years had complained about strong odors and leaking chemical drums.

“The owner of this facility ran away from his obligation­s

and allowed conditions to deteriorat­e rapidly,” Bob Martin, with the New Jersey Department of Environmen­tal Protection, said in a Jan. 30, 2014, news release.

“The abysmal storage conditions and poorly managed toxic chemicals found by EPA at this facility are unlawful, threaten the environmen­t and are simply unacceptab­le,” Judith Enck, an EPA administra­tor, said in the release.

No criminal charges were filed against the company owner, although that’s still a possibilit­y, according to the agency.

The cleanup cost taxpayers more than $1 million.

The largest penalty the EPA levied against a drum reconditio­ner still in business in the last five years was $15,000. That’s what a Kansas City company was fined in 2012 for pouring chemicals down a floor drain years earlier.

In 2007, a city building inspector in Memphis discovered a mess of leaking and damaged drums strewn about American Drum and Pallet, a small company not part of CLCM. Many were labeled “flammable” and “corrosive,” and some were within 50 feet of a home where children played.

At least 144 containers were labeled as methyl parathion and had liquids remaining in the bottoms. Methyl parathion is a highly toxic insecticid­e that can be fatal if ingested or absorbed through the skin.

“Stained soils and pooled oily liquids were noted at several areas ... dead vegetation was noted along the drainage pathway leading off-site from the property,” the EPA said.

Company owner Johnnie Williams was later charged with criminal violations relating to receiving drums that weren’t empty and instructin­g employees to pour hazardous contents into containers that then remained on his property. Williams had no hazardous waste storage permit.

Williams was sentenced to three years in prison and ordered to pay $322,749 to cover the costs of an emergency cleanup.

A major fire broke out at the closed site in 2014, injuring four firefighte­rs.

The Ohio Department of Justice got involved in a 2009 case, after a drum reconditio­ner was found to have hazardous chemicals on the property and was spewing pollution from its incinerato­r.

Gray Container LLC was located in Cleveland, within a half of a block of residences, a park and a church, according to the Ohio EPA. Business owner Kenneth Gray and two of his companies were found guilty of criminal violations of the state’s hazardous waste laws.

The company was ordered to pay $1.05 million in 2013 for the violations.

In December 2015, the EPA announced a $22 million settlement for the cleanup of a former drum reconditio­ning site that in the 1980s had been next to an elementary school in Los Angeles.

School employees had long complained of rashes, headaches and allergies, suspecting the neighborin­g Cooper Drum Co. was largely to blame.

EPA investigat­ors found high levels of the commercial degreasing solvent perchloroe­thylene in the soil and volatile organic compounds such as trichloroe­thylene, which had spilled and leaked on the site, contaminat­ing the soil and groundwate­r.

Exposure to trichloroe­thylene has been linked to increased cancer risk and is also associated with diabetes, liver and urinary-tract problems.

‘Significan­t noncomplia­nce’

Wisconsin also has been beset with environmen­tal problems from drum reconditio­ning plants, including one that covered 13 acres along the lakeshore in South Milwaukee.

The former Northweste­rn Barrel site, at the east end of Marina Road, was badly contaminat­ed as the company refurbishe­d steel drums in the 1940s through the mid-1960s, according to the EPA.

Northweste­rn Barrel dumped waste into two pits on the east side of the property, which later was named an EPA Superfund site.

Both pits contained an oily sludge-like material. One pit sample indicated PCBs. And a ravine on the property had some of the highest lead levels in the state.

After an initial EPA decision to treat contaminat­ed soil at the site, rather than remove it, nearby residents complained of health problems — including headaches, sore throats and nausea — all resulting, they said, from the release of toxic fumes during the soil treatment process.

The treatment was halted and the remaining contaminat­ed soil was shipped away. In 1997, a group of 80 companies was ordered to pay an estimated $3 million to remove more than 5,000 cubic yards of contaminat­ed material.

More recently, the state has found problems at Mid-America Steel Drum operations, the facilities that have since been acquired by Greif’s CLCM venture.

In September 2011, the Oak Creek facility agreed to pay $81,000 in fines for violating state air pollution regulation­s, according to the Wisconsin Department of Justice.

The company violated state air pollution laws and operated without an air emissions permit in 2008, according to the complaint against the company. The company exceeded its permitted limits of volatile organic compounds by more than 500 pounds over several months, the attorney general’s office said.

But the problems didn’t stop.

The Wisconsin DNR issued a noncomplia­nce no- tice in 2013 for violations regarding release of volatile organic compounds, and records from the EPA show the company violated federal Clean Air Act requiremen­ts again in 2014.

As for the 2015 odor complaints that brought the air management inspector to the St. Francis facility: Mike Higgins, general manager of the plant, responded in a letter that the company had made costly upgrades to its operations and added “some of the finest fume/ odor scrubbing equipment available.”

“After spending considerab­le effort and expense to voluntaril­y upgrade our systems for the common good, we feel we are being wrongly singled out as a violator,” Higgins wrote, blaming the complaints on one person who lived a half-mile away.

The St. Francis plant also has had serious clean water violations, repeatedly exceeding limits for mercury discharges in recent years.

The sewerage district, which oversees discharges from hazardous waste generators in 28 communitie­s around Milwaukee, issued a notice of “continuing violation” in 2014 as well as notices of “significan­t noncomplia­nce” in 2015 and 2016.

Yet little punitive action has followed the warnings.

“While there have been repeated violations, we believe that there has been, to date, an active and sincere effort on their part to try to determine the source of their problem,” said Sharon Mertens, director of water quality protection for the district.

“We do have the ability to levy fines. We don’t do it very often . ... We’re not here to fine people, we’re here to make sure it gets done right.”

Neither the state DNR nor local sewerage district was aware that CLCM is operating a facility on Milwaukee’s north side, based on records requests from the Journal Sentinel.

In interviews with the Journal Sentinel, three recent employees from that plant confirmed what Johns — the safety manager — had been recorded as saying to consultant­s: The chemical residue they washed from the drums went right down the floor drain and into the sewers.

Greif officials deny that the plant flushes chemicals into the sewer system and say any residue is taken off site and disposed of properly.

CLCM facilities in other states have caused environmen­tal problems as well.

In October 2014, the Memphis CLCM facility was in “significan­t noncomplia­nce” for continuous pH violations related to wastewater discharges as well as “nickel and copper exceedance­s,” according to the Tennessee Department of Environmen­t and Conservati­on.

Douglas Robinson, who worked at the CLCM plant in Arkansas until October, said the company dodged emissions regulation­s in a number of ways. It burned materials that put off dark, black clouds before dawn so nobody would see, he said.

And when regulators would visit, managers would hide the dirty drums and process only empty or clean drums, he said. reconditio­ners are supposed to accept only empty containers for recycling and refurbishi­ng. Most don’t have permits to handle hazardous waste.

Robinson suffered a severe chemical burn to his leg in 2015 and told the Journal Sentinel he was ultimately fired for complainin­g and being late.

Steele Johns, too, raised concerns about the Arkansas plant emissions, telling consultant­s the facility was throwing paint filters in the burner.

Arkansas state regulators had been to the facility many years earlier — in 2003 — before CLCM acquired it. They found the plant wasn’t properly recording and reporting emissions. Managers had failed to include accurate informatio­n on the paints and other chemicals handled at the plant.

The fine: $3,000.

 ?? MIKE DE SISTI ?? Drums are stacked outside the IndyDrum plant in Indianapol­is. The plant is part of the Container Life Cycle Management group of drum reconditio­ners.
MIKE DE SISTI Drums are stacked outside the IndyDrum plant in Indianapol­is. The plant is part of the Container Life Cycle Management group of drum reconditio­ners.
 ??  ?? Unknown chemicals burn on a conveyer belt as a drum moves into an oven line in October 2015 at Mid-America Steel Drum Co. in Oak Creek.
Unknown chemicals burn on a conveyer belt as a drum moves into an oven line in October 2015 at Mid-America Steel Drum Co. in Oak Creek.
 ?? MIKE DE SISTI / MILWAUKEE JOURNAL SENTINEL ?? A state air management engineer with the Wisconsin Department of Natural Resources said in November 2015 he experience­d “significan­t, obnoxious and objectiona­ble” odors from the Mid-America Steel Drum plant in St. Francis, shown here in 2016.
MIKE DE SISTI / MILWAUKEE JOURNAL SENTINEL A state air management engineer with the Wisconsin Department of Natural Resources said in November 2015 he experience­d “significan­t, obnoxious and objectiona­ble” odors from the Mid-America Steel Drum plant in St. Francis, shown here in 2016.
 ?? SAFETY MANAGEMENT SERVICES CO. AUDIT ?? Flames wrap around a drum in a burner in September 2013 at Drumco in Arkadelphi­a, Ark. The photo was taken to illustrate a violation of OSHA’s confined space regulation­s. Concerns also have been raised about the Arkansas plant’s emissions.
SAFETY MANAGEMENT SERVICES CO. AUDIT Flames wrap around a drum in a burner in September 2013 at Drumco in Arkadelphi­a, Ark. The photo was taken to illustrate a violation of OSHA’s confined space regulation­s. Concerns also have been raised about the Arkansas plant’s emissions.

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