Monday, October 2, 2006
Contact: Spence Jackson, 573-751-0290
GOV. BLUNT: STATE OF MISSOURI GAINS NOTHING FROM FEDERAL TAUM SAUK FINE
FERC penalty does not compensate Missourians
JEFFERSON CITY–An agreement announced today between AmerenUE and the Federal Energy Regulatory Commission (FERC) may satisfy the company’s debt to the federal government, but does not satisfy its obligations to Missourians and their natural resources, Gov. Blunt said today.
FERC announced today that AmerenUE has agreed to a $15 million settlement – the largest of its kind in the agency’s history – related to the Dec. 14 breach of the Taum Sauk reservoir in Reynolds County. The breach allowed the release of 1.3 billion gallons of water into Johnson’s Shut-Ins State Park, causing extensive damage.
“We are not surprised by Ameren’s agreement with FERC and the size of the settlement, but we need to remember that this penalty and commitments from Ameren are going to the Federal Energy Regulatory Commission,” said Gov. Blunt. “It does not even begin to address the damages and environmental harm caused to the State of Missouri by the breach.”
The agreement requires two-thirds of the settlement -- $10 million – to be sent directly to the federal government. The remaining $5 million will be placed into an account to be managed by the federal government for economic, environmental and educational opportunities near the facility. If the money is not spent on the projects by the end of 2007, or the completion of the upper Taum Sauk reservoir, it also goes to the federal government.
“It is an encouraging start that Ameren is willing to acknowledge in its settlement with the federal government that the local community and the recreational opportunities of all Missourians have been significantly harmed,” Blunt said. “However, to fully compensate the state of Missouri and its citizens, significantly more will be needed.”
As a result of the breach, the company faces state environmental civil penalties for water quality violations of discharging to the East Fork of the Black River without a permit and polluting the river with sediment. Additionally Ameren and the State of Missouri have been discussing compensation for the natural resource damage, damage to the park and the loss of recreational opportunities for Missourians.
Johnson’s Shut-Ins State Park is one of the state’s most popular parks, drawing more than 230,000 visitors in 2005 before the breach.
The Department of Natural Resources continues to work with AmerenUE as it develops plans to clean up the river.
“We will seek environmental penalties for the water quality violations,” said Department of Natural Resources Director Doyle Childers. “However, the state can’t seek these environmental civil penalties until the river is cleaned up.” The department anticipates it could take several more months until the river is cleaned up, depending on Ameren’s restoration progress.”
Last spring, Gov. Blunt directed the departments of Natural Resources, Conservation and the Missouri Attorney General’s Office to “creatively consider all options,” including the Rock Island Railroad and Church Mountain, to compensate citizens for damages caused by the Dec. 14 Taum Sauk reservoir breach. “The value of an 80-year-old forest simply cannot be translated into a dollar amount,” Gov. Blunt said. “Compensating Missourians may be better focused on compensating citizens with recreational and wildlife opportunities.”
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