Denali Water Solutions has fallen from grace with the Missouri Department of Natural Resources (DNR).

In a letter dated November 29, the DNR ordered Denali Water Solutions (upon receipt of the letter) to immediately cease all land application of processed waste in the State of Missouri and to make preparations to empty its two, 17-million- gallon storage basins in southwest Missouri.

The surprise announcement came via a Nov. 30 press release from Missouri State Rep. Dirk Deaton, R-Noel, who is seeking legislative changes to regulate the land application practices of Denali and other companies who spread processing waste in southwest Missouri.

Subsequent to the Missouri Fertilizer Control Board (MoFCB) opting to not renew Denali’s fertilizer permit after June 30 of this year, Denali has operated under what the DNR calls its “enforcement discretion.” That discretion allowed Denali to temporarily continue operating without a permit, as long as “operational controls” were adhered to: controls which included abiding by the tenets of the Missouri Clean Water Law.

Those requirements were set forth in a June 30 letter to Denali from the DNR.

On Oct. 3, Denali contractors deviated from operational controls.

According to Deaton, DNR investigators were called to the site of an alleged over-application of process waste near Southwest City in McDonald County.

A Denali Water Solutions fact sheet on the DNR’s website states that, on Oct. 3, DNR staff conducted an investigation in response to public concern.

There, states the report, they observed evidence of over-application of materials on saturated ground, and noted that rain was forecast for that evening.

“Based on observations made during the investigation, the department issued a notice of violation for operating without a permit and placing water contaminants in a location where they are reasonably certain to cause pollution,” the DNR fact sheet said.

The Oct. 3 investigation follows prior violations of the Missouri Clean Water Law by Denali: two over-application incidents for which Denali was fined $15,000 each. One over-application occurred on Aug. 9, when processing waste land-applied by Denali contractors entered the Cave Springs Branch in McDonald County. A civil property damage suit in that case is pending trial.

The second over-application incident resulting in violations of the Clean Water Law occurred on March 2, when processing waste by Denali contractors entered a tributary of Indian Creek, near the McDonald/Newton County line.

After Denali’s recent violation of operational controls on Oct. 3, the DNR revoked the “enforcement discretion” it had previously extended to Denali and ordered the company to cease all land-application activities.

According to Deaton’s press release, the DNR also directed Denali to pump and haul the contents of its storage lagoons to a permitted wastewater treatment facility, with violations being subject to possible additional fines under the Missouri Clean Water Law.

The law authorizes the DNR to assess fines up to $10,000 per day, per violation.

When questioned about the required timeframe for Denali to empty its storage basins in Newton and McDonald County, Heather Peters, with the Watershed Protection Section of the DNR, did not provide a specific answer.

“The Department is still working with Denali on resolution of storage of these materials without a permit,” she said. “We have not yet reached a final resolution of this matter.”

According to the DNR’s website, if a concerned citizen observes improper land application or runoff of applied material that is impacting waters of the state, they should contact the appropriate department regional office. Contact information is available at dnr.mo.gov/ about-us/division-environmental- quality/regional- office.

In southwest Missouri, residents should contact the Southwest Regional Office in Springfield at 417-891-4300.

In spite of the DNR’s current order to Denali to cease its land application and empty its storage basins, the edict could be temporary. With an operating permit or a valid permit exemption, Denali would be able to continue its operations in the future, Peters said.

Denali currently has permit applications pending with the DNR under the Missouri Clean Water Law.

“The permit process requires a public notice, with public engagement,” Peters said. “We are already aware of the public interest in Denali’s sites in southwest Missouri, and we intend on holding in-person public meetings as well as separate virtual meetings to enhance public engagement and input on any permit or permit action that we might draft.”

Peters was unable to comment on the effect that the outcome of pending lawsuits might have on Denali’s ability to conduct operations as it has in the past.

Residents of Newton and McDonald County are suing the DNR under the LLC name of SLUDGE (Stop Land Use Damaging our Ground and Environment), alleging that Denali’s processing waste and storage basins should be subject to the requirements of the Missouri Solid Waste Law, not solely the Missouri Clean Water Law.

Denali is suing the Missouri Fertilizer Control Board, alleging that, according to the Missouri Fertilizer Law, their fertilizer permits should be reinstated. Such permits are considered an exemption from the need for a permit from the DNR.

Both cases are pending a judicial hearing.

Denali issued the following statement to the Cassville Democrat on Monday.

“More than 100 Missouri farmers rely on our organic fertilizers, and dozens of Missouri food manufacturers employing more than 10,000 Missouri workers depend on our services to continue their current business operations. Without the ability for Denali to operate, these Missouri companies will face extremely challenging and costly decisions. We believe this abrupt action by the Missouri DNR puts the state’s food industry at risk.

“Denali has a long track record of responsibly handling the residuals that result from water treatment at food manufacturing facilities, recycling these residuals as valuable fertilizers, and protecting clean water in Missouri. We are committed to ensuring a positive outcome for Missouri farmers, businesses and communities and are working with all parties involved on a long-term solution as soon as possible.”

Follow-up questions were posed to Denali about its plans for the disposition of residuals moving forward, and whether the company had located a wastewater treatment facility willing and capable of taking on their industrial effluent. Responses were not available by presstime.