020612 IBP Pays Neb. $1.85M in Settlement

Lincoln, NE - IBP Inc. paid Nebraska $1.85 million as part of the settlement of a lawsuit filed over alleged environmental violations at its Dakota City plant.

Attorney General Don Stenberg made the announcement.

The U.S. Environmental Protection Agency filed the lawsuit in January 2000, accusing the meatpacking giant of polluting the air and water surrounding its 200-acre Dakota City plant.

The money will be given to Dakota County to improve local schools.

The money is part of the more than $14 million in penalties and improvements IBP promised in October to make to settle the lawsuit.

IBP agreed to spend $10 million to construct additional wastewater treatment systems to efficiently reduce its discharges of ammonia into the Missouri River. The company also agreed to continue and expand operational improvements ordered last year that will significantly reduce hydrogen sulfur air emissions, Justice Department officials said.

The improvements are scheduled to be completed in the summer of 2003.

IBP also will pay penalties of $2.25 million to the EPA.

In return, the EPA dropped its lawsuit against the company and its claims of environmental violations by the company.

The settlement was not an admission of wrongdoing, IBP said.

The Dakota City plant employs about 4,000 of IBP's 10,000 employees in the state. IBP is the world's largest producer of fresh beef, pork and related products.

IBP, based in Dakota Dunes, S.D., is the nation's biggest beef processor. Springdale, Ark.-based Tyson Foods Inc., the poultry giant, purchased the company last year.

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