Tyson Foods, Cargill settle with Oklahoma in Illinois River Watershed case

Oklahoma Attorney General Genter Drummond announced Thursday (Feb. 12) that Tyson Foods and Cargill have entered into settlements totaling more than $25 million in the 20-year old lawsuit over pollution in the Illinois River Watershed.

Drummond said the settlements “mark a turning point” in the long-running environmental litigation.

“For over two decades, Oklahoma has fought to protect the Illinois River Watershed and the natural resources that sustain our communities,” Drummond said in a press release. “The decision to settle by Tyson and Cargill makes one thing unmistakably clear: corporate accountability is not optional, and protecting Oklahoma’s water can, and must, go hand in hand with a strong poultry and agricultural industry. These settlements provide a path to move forward together, giving certainty for growers, protecting jobs and safeguarding Oklahoma’s waters for future generations.”

In mid-January, poultry producer George’s settled with Oklahoma in the case for a little more than $5 million.

Under the consent judgments filed Thursday, Tyson Foods. will pay $19 million for remediation and conservation of the Illinois River Watershed. Cargill, Inc. and Cargill Turkey Production will pay $6.5 million.

Under the settlements, both companies will:

• Progressively increase the amount of poultry litter removed from the Illinois River Watershed;
• Pay into a fund for a special master to monitor compliance and bear all costs associated with litter removal;
• Pay into a fund for remediation of the Illinois River Watershed; and,
• Voluntarily dismiss their respective appeals of the Dec. 19 judgment.

In exchange, the state of Oklahoma will release all claims against both companies.

The lawsuit at the heart of the matter dates back to 2005. In late December, U.S. District Judge Gregory Frizzell ruled that several poultry companies must pay penalties in the lawsuit that placed liability for phosphorus pollution in the river watershed after negotiations to come up with a settlement failed.

The Illinois River Watershed is a major drainage basin spanning Northwest Arkansas and Northeast Oklahoma. It originates in the Ozarks, flows through Lake Tenkiller, and joins the Arkansas River.

Tyson Foods, Cobb-Vantress, Cal-Maine Foods, Cargill, George’s, Peterson Farms, and Simmons Foods were original defendants in the case brought by the Oklahoma Attorney General. The poultry companies have argued that their mitigation efforts have reduced the harm at the center of the lawsuit, but Frizzell disagreed.

The judge’s ruling restricted the application of poultry waste on farmland that can be used in the watershed. The order told the companies to pay penalties to the state of Oklahoma and immediately limited the amount of poultry litter that can be used as fertilizer in the area. The court decision also makes the companies responsible for poultry waste and forces them to terminate contracts with farmers who don’t comply with new requirements surrounding it.

Frizzell’s ruling required the poultry companies to pay $10 million into an account to monitor and clean up the watershed and then pay $5 million more every time the fund falls below $5 million. The process is to be overseen by a special master who has yet to be named.

Nathan McKay, president of Poultry for Tyson Foods, said the settlement brings resolution to the dispute, and it allows the company to focus on its growers and communities moving forward.

“Tyson Foods has reached a settlement with the State of Oklahoma to resolve the long-running Illinois River Watershed dispute. We believe this resolution is in the best interest of our growers and their communities in Northeast Oklahoma and Northwest Arkansas,” said McKay. “Tyson Foods is fortunate to have been a part of the agricultural community in the region for our entire 90-year history, and we are deeply grateful for the support we have received from our growers, our neighbors, and elected leaders in both states to achieve this resolution. We are pleased to move forward with our growers in Oklahoma and Arkansas to focus together on our mission of feeding the world like family.”

“Cargill appreciates the engagement of the Oklahoma Attorney General, the State of Oklahoma and local stakeholders in bringing this matter to a fair and reasonable resolution. We look forward to continuing to work and invest in Oklahoma,” said a Cargill spokesperson.

The remaining defendants in the case include Cal-Maine, Peterson Farms and Simmons.

Link here for the consent agreement with Tyson Foods, and link here for the Cargill consent agreement.