HomeMy WebLinkAbout20052753.tiff STATE OF COLORADO
Bill Owens,Governor
Douglas H.Benevento,Executive Director oF'col
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Dedicated to protecting and improving the health and environment of the people of Colorado .-:90
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4300 Cherry Creek Dr.S. Laboratory Services Division I* �•� V>
Denver,Colorado 80246-1530 8100 Lowry Blvd. • ,x*=ti
Phone(303)692-2000 Denver,Colorado 80230-6928 '\e?6,t,"
TDD Line(303)691-7700 (303)692-3090 Colorado Department
Located in Glendale,Colorado P
of Public Health
htip://www.cdphe.state.co.us and Environment
August 25, 2005
Mike Cervi, President
National Hog Farms, Inc. Certified Mail Number:7002 2410 0001 0130 3127
P.O. Box 1930 (Return Receipt Requested)
Greeley, CO 80632
RE: Acceptance of Irrevocable Letter of Credit No. NZS341459 As Partial Interim Financial
Assurance
Dear Mr. Cervi:
The Colorado Department of Public Health and Environment's ("Department") Water Quality Control
Division ("the Division") issued to National Hog Farms, Inc. ("NHF") a Compliance Order on Consent
("Order") that became effective on March 20, 2003. Paragraph 11.16 of the Order requires, in part, that
NHF submit an approvable form of financial assurance in the amount reflected in the complete Financial
Assurance Plan ("FAP") submitted to the Division as required in Paragraph 11.15 of the Order. This
financial assurance must be submitted within 90 days of the date of the Division's approval of the
complete FAP.
The Division sent to NHF on January 6, 2005, a"Compliance Advisory—Noncompliance with
Compliance Order on Consent." Part 9 of this advisory informed NHF that the Division had not
received a complete FAP. In addition, Exhibit 1 of the advisory provided NHF with a notice of the
specific deficiencies in NHF's June 2003 FAP submittal that must be cured for the FAP to be complete.
As of the date of this correspondence, the Division has not received from NHF either a revised or
complete FAP. This failure violates subsection 61.13(4)(h)(viii) of the Colorado Discharge Permit
System Regulations ("regulations"). The Division finds that NHF's financial assurance plan is
incomplete.
On August 8, 2005 the Division received a letter from Wells Fargo Bank, N.A. regarding the
establishment of an Irrevocable Standby Letter of Credit No. NZS341459, at the request of and for the
account of National Hog Farms, Inc. The letter of credit is for up to the aggregate amount of Two
Hundred Fifty Thousand U.S. Dollars (US$250,000.00). Pursuant to subsection 61.13(4)(h)(viii) of the
Colorado Discharge Permit System Regulations ("regulations"), an irrevocable standby letter of credit is
one of the financial mechanisms that may be used to satisfy the financial assurance obligation.
2005-2753
O9- is- 6'7 C ,
Mike Cervi
NI-IF Letter of Credit
August 25,2005
Page 2
Subsection 31.13(4)(h)(v) authorizes the Division to require NHF to provide interim financial assurance
because its financial assurance plan is incomplete. Because NHF has not submitted adequate
information, the Division has not yet established the total amount of financial assurance that will be
required. However, the Division has concluded that $250,000 is insufficient to fulfill the financial
assurance requirements that would be necessary to satisfy an approved plan.
The Division approves and accepts Irrevocable Standby Letter of Credit No. NZS341459 as providing
interim financial assurance, in part. Acceptance of the letter of credit does not satisfy NHF's obligation
to provide interim financial assurance.
Sincerely,
even H. Gunderson, Director
Water Quality Control Division
cc: Brian T.O'Connell Wells Fargo Bank.N.A.Trade Services Division,Northern California One Front Street,21''Floor San
Francisco,CA 94111
Board of County Commissioners of Weld County and Weld County Health Department, 1517 16''Avenue Court,Greeley,CO
80631
Stan Weber,National Hog Farms,Inc.,Livestock Exchange Building, 1600 Gennessee,Kansas City,MO 64102
Mark Davis,Board of Land Commissioners, 1313 Sherman St.,Room 621,Denver,CO 80203
Trevor Jiricek,Weld County Dept.Public Health&Environment, 1555 N. 17th Ave.,Greeley,CO 80631-9117
Tony Trumbly,Attorney General's Office
Howard Roitman,Director,Office of Environmental Programs,CDPHE(via email)
Scott Klarich,Enforcement,CDPHE-WQCD
Ron Jepson,Environmental Ag Program,CDPHE
Jill Cooper,Director,CDPHE-SP(via email)
Phyllis Woodford,Program Manager,Environmental Ag Program,CDPHE-SP(via email)
Dave Akers,Section Manager,CDPHE-WQCD(via email)
NHF enforcement file
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