Arkansas poultry companies reach $44 million settlement with Oklahoma
A decades-long lawsuit over the pollution of the Illinois River Watershed (IRW) by poultry waste runoff has resulted in a settlement of nearly $44 million, according to Oklahoma State Attorney General Gentner Drummond.
“This agreement allows us to turn the page on a dispute that has gone on for far too long,” Drummond said. “It protects Oklahoma’s water, provides certainty for our poultry industry, and shows that difficult problems can be solved through persistence and good-faith negotiation … Every company has now made enforceable commitments with clear deadlines, creating a balanced solution that protects our natural resources while supporting one of Oklahoma’s most important industries.”
Oklahoma sued Tyson Foods, Cargill, George’s, Peterson Farms, Cal-Maine and Simmons Foods alleging their farms polluted the IRW that feeds Lake Tenkiller and other waterways. A ruling was handed down in December by U.S. District Judge Gregory Frizzell that the poultry companies were responsible for the pollution.
“The court concluded that the defendants knew their growers, in the ordinary course of their work for the defendants, spread poultry litter on the land in the IRW, and knew or should have known no later than the late 1990s that their growers’ land application of poultry waste generated by the defendants’ poultry was a primary source of the excess phosphorus in the waters of the IRW,” Frizzell wrote in the Dec. 19 ruling.
The July settlement covers the six defendants who will pay a total of $41.671 million into an environmental relief fund for watershed stewardship, and litigation costs will be transferred to the Oklahoma Conservation Commission. No details were provided as to how much each company will pay toward the $41.671 million. They will also pay a combined $420,000 in penalties to the Oklahoma Department of Environmental Quality Revolving Fund. In exchange, Oklahoma will move to set aside the December 2025 court judgment and close out the lawsuit once the settlement is finalized.
“This agreement is a formal extension of the work that we’ve been doing for decades,” said Simmons CEO Todd Simmons. “While it’s unfortunate that a political campaign was the driving force behind this senseless attack on agriculture, we hope the industry will be able to move forward with a clear plan after decades of uncertainty. Most importantly, we hope farm families in the IRW can return to a sense of normalcy and the tradition of agriculture in this region can be preserved for generations to come.”
Siloam Springs-based Simmons said it will pay $90,000 into a penalty fund, per the settlement terms. Other defendants were ordered to pay the following amounts in penalties: Cargill, $60,000; George’s, $10,000; Tyson Foods, $190,000; and Cal-Maine, $70,000.
Simmons also said it will pay $175,000 to fund an auditor to confirm the defendant’s compliance with their litter removal commitments. The total payment of $1.9 million is shared by other defendants as follows: Cargill, $325,000; George’s, $250,000; Peterson, $50,000; Tyson Foods, $950,000 and Cal-Maine, $150,000.
The settlement calls for the removal of up to 80% of the defendants’ poultry litter from the Illinois River Watershed in Oklahoma after four years. In years one and two, 60% of litter must be removed from the region, and 70% removed in years three and four, moving to 80% litter removal in years five through seven. The defendants also agreed that all removed litter will not be applied to any other nutrient-sensitive watershed in Oklahoma.
The settlement also calls for funding or securing funds for half of the cost of installing vegetation buffers on qualifying poultry farms along Lake Tenkiller and the watershed’s scenic rivers, which filter runoff before it reaches the water.
The settlement lasts seven years, and companies must still follow the state’s litter management laws during and after that time. It also follows a $44 million settlement that Tyson Foods and Cargill agreed to in February and a $5.25 million settlement by George’s Inc. with the state of Oklahoma in January.
“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,” Nathan McKay, head of Tyson’s poultry business, noted in February.