Clean Water Action Council has claimed for 2 years this project was designed to fail.  Now this private remediation company is providing details.

We knew the paper companies had a strong incentive to show disastrous results at this demonstration, so they could argue that "it's safer to just leave the PCBs where they are."  A bad demonstration might save the polluters hundreds of millions of cleanup dollars when the whole river cleanup plan is released for comment this winter.

At the same time, the polluters are pouring hundreds of thousands of dollars into a media and lobbying campaign to convince the public and legislators that dredging is dangerous and unnecessary --- that "natural recovery" is the best choice for the river.

The polluters also appear to be inflating the cost figures for the project (high costs, and job blackmail, are additional arguments the paper companies are using to scare the public away from a strong cleanup plan).  Last winter they claimed the project ran out of money and exceeded the $9 million budget arranged with the state.

But amazingly, the state (which was a "partner" in this project) apparently has seen no documentation of those costs, and hasn't required financial documentation.  Even if the costs are real, the problems cited below would have increased costs unnecessarily.

CWAC is calling for an independent financial and technical audit of the project.

[NEWS RELEASE FROM FOUR SEASONS ENVIRONMENTAL]

July 6, 2000
FOR IMMEDIATE RELEASE
CONTACT:

J. Wayne Cropp, Four Seasons Environmental, 423-396-4100

GREEN BAY, Wis --- The demonstration project to dredge polychlorinated biphenyls (PCBs) from the Fox River was designed to fail from its inception, according to the firm which conducted the lion's share of the actual dredging, dewatering, and water treatment.

Four Season's Environmental, Inc., made this announcement as the company filed a demand for non-binding arbitration with lead contractor Montgomery Watson Constructors, Inc., (MWCI) on grounds that Four Seasons has not been paid in full for services it performed on the cleanup project.

"After working in good faith to clean this river and meeting roadblocks at every turn, we can come to no other conclusion than that this project was set up to fail right from the start," said Phil Martin, vice-chair of the Four Seasons Board.  "Not only did Montgomery Watson do a poor job characterizing actual conditions at the site, which led to them providing us incomplete and inaccurate information as to site conditions, they were unresponsive when we notified them to changes in those site conditions and they've refused to pay us for the work we have done.  When you put those pieces together, you have to wonder whether they, or their client, really wanted this project succeed."

At the heart of the matter is a dispute over site conditions which differed significantly from those represented to Four Seasons by MWCI and its parent company, Montgomery Watson Americas, Inc. (MWA).

The scope of the original demonstration project called for the dredging of 55,000 in-situ cubic yards of PCB-contaminated sediment from the Fox River, resulting in 19,300 dry tons of filtercake for disposal.

Based on comprehensive studies of the Fox River contamination prior to bidding out the project, MWA and MWCI misrepresented to Four Seasons that the PCB-contaminated sediments would contain 34 percent dry weight solids.  In fact, Four Seasons discovered that the solids concentration was actually closer to 50 percent.  The contract between MWCI and Four Seasons provides that an increase in the contract price would be allowed in the case of differing site conditions.

Four Seasons gave written notice of the differing conditions on Nov. 10, and though MWCI instructed Four Seasons to continue working on the project it has yet to acknowledge that differing site conditions exist.

"The erroneous information we were provided at the start of this project was critical to the outcome of the demonstration project because, as the percentage of solids increases, the work required to process 55,000 cubic yards of sediment increases," said Martin.  "Our project testing, design, equipment, sizing, labor estimate, and project schedule were based on the inaccurate information provided by Montgomery Watson.  It's no surprise then that the costs and time needed to complete the project are greater than anticipated.  We worked hard to do our part to clean up the Fox River, and we've demonstrated that dredging and dewatering is an effective method of addressing sediment contamination.  We've also demonstration that site conditions are different than anticipated, and we deserve to be paid for the work we accomplished at the site."

Though the Fox River Group (the seven paper companies held responsible for the PCB cleanup in the Fox River) claims to have spent nearly $9 million on the demonstration project, including substantial payments to Montgomery Watson, Four Seasons has received from MWCI just over $950,000 of the nearly $4.8 million it is owed.  The seven papermills that comprise the Fox River Group are:  P.H. Glatfelter, Wisconsin Tissue (Georgia Pacific, now), Riverside Paper Corp., U.S. Paper Mills, Appleton Papers, NCR Corp., and the Fort James Corp (formerly Fort Howard Corp. and James River Corp.)

"Just as we question Montgomery Watson's desire to complete this project successfully, we also question the Fox River Group's intention's" said Martin.  "Their commitment to seeing this project through and managing their lead contractor is questionable at best."

Four Seasons performed dredging, dewatering, and water treatment at the site from August until December 1999, when weather conditions prevented further work from being conducted.

"We have attempted to resolve this issue with Montgomery Watson for several months, but our discussions have led nowhere," said Martin.  "All we ask is to be paid for our work.

The Fox River Group claims they've spent nearly $9 million on this project, and Montgomery Watson has received most of that.  We're the ones who have performed the work in the river, and we've only been paid around $1 million by Montgomery Watson.  Where has the rest of the money gone?"

Four Seasons Environmental is a division of Four Seasons Technologies, a technology-driven growth company offering broad-based, cost-effective solutions in industrial services, emergency response, geotechnical engineering, and soils, water, and residual management.  The Chattanooga-based company has more than 440 employees in offices in 14 U.S. cities, including Chattanooga, Cookeville, Memphis, and Nashville, Tenn.; Greensboro, Raleigh, and Charlotte, N.C.' Parkersburg, W.Va.' Columbus, Ohio; Jackson, Miss.; Baton Rouge and Port Allen, La.; El Dorado, Ark.; and Houston, Texas, and provides services throughout the continental United States, Canada, Mexico and Europe.

Footnote from CWAC:

A Four Seasons representative told the Green Bay News Chronicle last week that --- "We were threatened to not go to the press.  They said we'd never get paid if we did."