Denali may close ‘noxious’ Crawford County lagoon in 2026

Russellville-based Denali Water Solutions may file a plan with state officials to discontinue using a lagoon in Crawford County that allegedly resulted in “noxious fumes and odors” in the Fort Smith metro, according to Fort Smith attorneys Joey McCutchen and Stephen Napurano.

The lagoon has been used by Denali to dump food and food-production residuals into pits that would eventually produce nutrient rich fertilizer for farmers and the users.

In October 2024, River City Bistro owner Bruce Spinas filed a lawsuit alleging that Denali Water Solutions is responsible for the noxious odor in the area. McCutchen and Napurano filed the complaint in the Crawford County Circuit Court on behalf of Spinas who said the smell was harmful to his restaurant business in Fort Smith.

The attorneys on Friday (May 29) issued a press release saying Denali plans to end the lagoon operations.

“Denali will file the closure plan as early as July or August 2026,” according to the press release. “Denali has also identified early spring 2027, roughly between February 15 and March 1, as the likely good-faith window for full removal of the material, depending on factors such as weather, crop rotations, land-application conditions, and regulatory approval. During the interim period, Denali will continue to maintain the existing grease cap to minimize odors while relatively minor piecemeal removal of material continues. Denali will avoid large-scale stirring of the material during hot-weather months to avoid significant odor release. Denali has also stated that there are no anticipated new lagoons or other storage facilities to be opened within a 10-mile radius of the now closing NEBO lagoon.”

The press release also said Denali has not dumped materials in the lagoon since Jan. 1, 2026, and the company is working with state officials on a closure plan.

Talk Business & Politics was unable to confirm with Denali its plan to remove material from the lagoon and discontinue using the lagoon. However, during a May 2025 hearing before the Arkansas Division of Environmental Quality (ADEQ), Denali said it would stop disposing of chicken waste in the area by the end of the year. The company did not at the time provide details on when it would remove materials from the lagoon.

“The people of Fort Smith were told years ago that this issue was being resolved,” McCutchen said in Friday’s press release. “They were told the lagoon would be closed permanently. They were told the odor would be going away. But it kept coming back. It took this lawsuit to finally push toward real accountability.”

McCutchen said the lawsuit is still pending, but Spinas may end his legal action if and when Denali confirms that a closure plan has been filed with the ADEQ.

“These are important steps and we are encouraged that Denali is now pursuing permanent closure as it will be environmentally beneficial to all residents in the River Valley,” McCutchen noted.