990317 Smithfield Settles in NC Environmental Case

Smithfield, VA - Smithfield Packing Company, Inc., a wholly-owned subsidiary of Smithfield Foods, Inc., announced that it has settled its case against the North Carolina Department of Environment and Natural Resources/Division of Water Quality regarding the terms of the wastewater discharge permit issued by DENR/DWQ on September 23, 1998 for Smithfield Packing's Tar Heel, North Carolina plant. The eleven North Carolina environmental organizations that intervened in the case in support of the DENR/DWQ also agreed to the settlement.

Under the settlement agreement, Smithfield Packing's Tar Heel plant will be subject to a production limit of 32,000 hogs per day and 7,488,000 hogs per year that will become effective upon the submittal by Smithfield Packing and approval by DENR/DWQ of an engineering certification of the plant's waste treatment system to properly treat the projected waste loadings on a continuing basis. The annual production limit affords Smithfield Packing more operational flexibility to meet seasonal demands for pork products produced at the facility.

The parties agreed that hogs purchased from existing farms that use innovative waste management systems approved by DENR/DWQ will not count toward the annual production limit. Smithfield Packing will be required to maintain records of the number of animals slaughtered daily and the totals for the year- to-date and to report such totals to DENR/DWQ monthly. DENR/DWQ also agreed to make other technical changes to the NPDES discharge permit at Smithfield Packing's request.

The agreement contemplates that Smithfield Packing will apply for a modification of its current NPDES discharge permit to incorporate the terms of the settlement agreement. The revised terms will also be incorporated into the Smithfield Packing's non-discharge permit covering the Tar Heel plant's water reuse system. Smithfield Packing, as well as the environmental groups, agreed to forego any challenge to the modified NPDES and non-discharge permits issued in accordance with the settlement agreement. Upon issuance of both modified permits, Smithfield Packing agreed to dismiss its lawsuit against the DENR/DWQ. Nothing in the agreement prevents Smithfield Packing from seeking additional modifications to its permits in the future. The agreement also includes settlement of prior alleged violations of the Tar Heel plant's NPDES permit.

Lewis R. Little, President and Chief Operating Officer of Smithfield Packing, said, “We are pleased with the elements of the settlement agreement and the flexibility it affords the Tar Heel plant to meet our customers' requirements for quality pork products. Smithfield Packing and our employees take great pride in the Tar Heel plant and we are committed to its continued environmental compliance in the future.”

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