DEP02-0621 BEFORE THE STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION In re: EMERGENCY AUTHORIZATION TO THE RECEIVER ALLOWING FOR THE DISCHARGE OF TREATED PROCESS WASTEWATER FROM THE PINEY POINT, INC. PROCESS WATER SYSTEM _________________________________________/ CASE NO. 02-1054 EMERGENCY FINAL ORDER Under Section 120.569(2)(n), 373.026(7), and 373.119(2) of the Florida Statutes, the State of Florida Department of Environmental Protection (the “Department”) enters the following Emergency Final Order, including findings of fact and conclusions of law, to address the imminent threat of a catastrophic spill of untreated water from the phosphogypsum stack system and cooling ponds of Piney Point Phosphates, Inc. This order authorizes the Receiver (Mr. Louis Timchak, Jr.), appointed by the Manatee County circuit court to manage environmental risks at the Piney Point Phosphates, Inc. (Piney Point) phosphogypsum stack system, including cooling ponds, phosphogypsum stack, and ditches (System), to implement the activities specified herein. DEFINITIONS The terms used in the Order are those defined generally in Title 62 of the Florida Administrative Code (F.A.C.). FINDINGS OF FACT 1. Piney Point is located on U. S. Highway 41 North in Palmetto, Florida. Piney Point is an inactive phosphatic fertilizer chemical processing plant. Piney Point has been shut down since December 1999. On February 1, 2001, Piney Point Phosphates, Inc., notified the Department that it had no money and could no longer maintain the facility. To prevent an environmental catastrophe, on February 7, 2001 the U.S. Environmental Protection Agency assumed responsibility for the environmental security at the facility until transferring that role to the Department on February 21, 2001. On February 8, 2001 Piney Point Phosphates, Inc. filed for bankruptcy protection under Chapter 11, Title 11 of the United States Code. On April 18, 2001 the Manatee County Court appointed the Receiver over the Piney Point System. The Receiver was assigned the responsibility of managing the environmental risk at Piney Point. Piney Point has over a billion gallons of acidic process water stored within the Piney Point System. 2. Piney Point received unusually heavy rainfall from Tropical Storm Gabrielle during September 2001, which required the issuance of Emergency Order No. 01-1650 (First Emergency Order). The First Emergency Order was issued to prevent a dam failure in the Piney Point System that would have discharged millions of gallons of highly acidic process water to the environment. The First Emergency Order authorized the Receiver to treat the process water with single-stage liming prior to discharge. The discharge, which began on October 22, 2001 and ended on November 19, 2001 (29 days), successfully prevented a dam failure. The First Emergency Order expired on February 13, 2002. 3. As of July 15, 2002, Piney Point had remaining available storage capacity of about 208 million gallons, which is equivalent to the volume of stormwater generated at the Piney Point System from 16.8 inches of rain. Current weather forecasts indicate a high probability of rainfall in excess of the storage capacity available at Piney Point. The immediate need for additional water storage capacity is estimated at 128 million gallons. The additional water storage capacity can be created by providing additional storage on-site, transport of process water off-site, and/or surface water discharge of treated process water. 4. The Receiver has been working diligently to increase water storage capacity at the Piney Point System to prevent a dam failure and catastrophic release of untreated process water. The Receiver has increased on-site storage capacity, minimized the watershed by segregating certain areas at the plant site; transferred treated process water to the Manatee County Utilities System; and transferred process water to another phosphatic fertilizer chemical processing plant. The Receiver is also in the process of finalizing contracts with other entities to transfer water from Piney Point to their facilities. However, all these actions are not sufficient to provide the margin of safety the Department has determined is necessary to meet the rainy-season water storage goals. 5. The Receiver is also implementing an alternate treatment technology, Reverse Osmosis (RO), that separates contaminates from the process water by applying high pressure across a synthetic membrane. Initial testing indicates that the water quality resulting from RO treatment (RO permeate) reduces nutrient and other contaminant concentrations to very low levels, and the water could be discharged to surface waters of the state with minimal environmental impacts. 6. Based on the conditions described above, the Department has determined that imminent harm to the environment exists at Piney Point and emergency measures are necessary to minimize risk. 7. The Department finds that Piney Point has a storage water capacity deficit. This storage deficit poses a significant imminent threat to the state’s natural resources from a potential catastrophic discharge of untreated process water. The untreated process wastewater contains about 1,400 mg/l of total phosphorus, 650 mg/l of total nitrogen, 150 mg/l of fluoride, 11,500 mg/l of total dissolved solids, a pH of 2.9, and elevated levels of heavy metals. A catastrophic release of untreated process wastewater from a dam failure would cause significant and long lasting environmental damage, as was evidenced by a release of process wastewater from a phosphatic fertilizer chemical processing plant near Mulberry in Polk County in 1997. RO permeate contains orders of magnitude less contaminants, with total phosphorus of less than 0.5 mg/l, total nitrogen of less than 1 mg/l, fluoride of less than 5 mg/l, total dissolved solids of less than 50 mg/l, a neutral pH, and negligible concentrations of heavy metals. Also, a controlled release of RO permeate would represent only a fraction of the total freshwater input into the receiving water. No impacts due to salinity changes are anticipated. The above described conditions require that the Receiver be granted the authority to release RO permeate to ensure the integrity of the dams at the Piney Point System to prevent a catastrophic discharge of process wastewater. When discharging, the Receiver shall mix the RO permeate with deep well ground water or other waters approved by the Department to minimize the impacts to surface waters. 8. Any discharge shall be monitored in accordance with the Piney Point Sampling Plan to document any impacts of such discharge. CONCLUSIONS OF LAW 9. Section 120.569(2)(n) of the Florida Statutes gives the Department the authority to issue an Emergency Final Order if, as agency head, I find that an immediate danger to the public health, safety, or welfare so requires and the Order recites with particularity the facts underlying that conclusion. 10. Section 373.119(2), of the Florida Statutes gives the water management districts the authority to issue an Emergency Order if the Executive Director finds an emergency exists that requires immediate action to protect the public health, safety or welfare. Section 373.026(7) of the Florida Statutes gives the Department the authority to exercise any powers authorized to be exercised by the water management districts. 11. Rule 62-110.107(2) of the Florida Administrative Code authorizes the Department to enter an emergency order when it determines that immediate action is necessary to abate an imminent or currently existing serious threat to the public health, safety, welfare, or the environment. 12. Based on the findings recited above, I find and conclude that the emergency caused by the imminent weather conditions requires an immediate Order of the Department to protect the public health, safety, and welfare and the environment. THEREFORE, IT IS ORDERED: 13. The Receiver is authorized to discharge up to 100 Million gallons of RO permeate to the waters of the state through the Piney Point System’s existing process wastewater outfall. The Receiver shall provide written notification of the intent to discharge as soon as practicable and in no event less than 72 hours prior to any discharge. The notification shall be submitted by phone and fax to designated representatives of the Department, Manatee County - Environmental Management and the Tampa Bay National Estuary Program. 14. The discharge of RO-permeate shall be commingled with deep-well groundwater or other waters approved by the Department to ensure compatibility of the discharge with the receiving water. The RO permeate shall be commingled with no less than 2%, and no more than 5%, deep well water (by volume), not to exceed a total of 25,000 gallons per day of well water. The Receiver is authorized to withdraw up to 25,000 gallons per day of ground water per day from the deep, water supply wells located at Piney Point to accomplish the required levels of commingling. The Receiver shall discharge no more than 1 million gallons of permeate in any one-day period, not including supplemental water. 15. The Receiver shall comply with the provisions in the attached Piney Point Sampling Plan. 16. The Receiver shall immediately discontinue the discharge upon notification by the Department that the discharge water does not meet provisions specified in the Piney Point Sampling Plan or that the discharge causes adverse environmental impacts in the receiving surface waters. 17. The Receiver shall submit a report summarizing all monitoring results and discharge volumes once every two weeks to the Department’s Phosphate Management Office. 18. The Department issues this Emergency Final Order solely to address the imminent threat of water exceeding the storage capacity of the Piney Point System and the risk to the integrity of the system due to anticipated rainfall. This Order does not authorize any activity other than that which is specifically described above. 19. This Order shall take effect immediately upon execution by the Secretary of the Department, and shall expire 180 days from the date of execution set forth below, unless modified or extended by further order. NOTICE OF RIGHTS Any party adversely affected by this Emergency Final Order is entitled to judicial review under section 120.68 of the Florida Statutes. The Florida Rules of Appellate Procedure govern the review proceedings. Such proceedings are commenced by filing one copy of a notice of appeal with the Agency Clerk of the Department of Environmental Protection and a second copy, accompanied by filing fees prescribed by law, with the First District Court of Appeal or with the district court of appeal in the appellate district in which the party resides. The notice of appeal must be filed within thirty days of rendition of the Order to be reviewed. DONE AND ORDERED ON THIS ____ day of July, 2002, in Tallahassee, Florida. STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION ________________________________ David Struhs Secretary (SEE PDF VERSION FOR ATTACHMENTS)