Taking Care of Business

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When the DNR declared an emergency at the smoldering Bridgeton Landfill in 2013, the state agency skirted its formal bidding process, an out-of-state firm scored a sweet deal and the public was left none the wiser.

first published at STLReporter, Feb. 3, 2015

On March 18, 2013, environmental specialist Dan Norris and his boss Brenda Ardrey of the Missouri Department of Natural Resources quietly submitted a memorandum to Procurement of Services File RFP 3445-001. The memo shows that the department did not receive any bids that complied with the agency’s standards for air sampling services at the Bridgeton Landfill, where an underground fire has been burning near radioactive waste since 2010.

Nevertheless, a six-figure contract was awarded to SWAPE, an environmental firm from Santa Monica, Calif. The acronym stands for Soil Water Air Protection Enterprise. SWAPE, acting as a middle man, then hired a St. Louis-based subcontractor.  The paper trail indicates no complete bids were received even after the DNR extended the deadlines by more than two weeks. The DNR guidelines normally require a minimum of three competitive bids. Two companies ultimately proposed deficient offers. By its own admission, the DNR awarded the plum to one of those companies based on an incomplete proposal. The DNR was able to skirt its normal protocols by invoking an emergency clause in its procurement process.

“Essentially, there was a response to the bid, it just wasn’t complete,” says Norris, who recently left his job with the state regulatory agency.  “It was missing a couple things as far as the response to the actual form. DNR had not dealt with an event quite like this before. It’s not like there was just a playbook to go off of for sampling air around a smoldering landfill, at least not a playbook that Missouri had. “We were told to waste no time whatsoever on getting a contractor and getting boots on the ground out there to begin the air sampling. It was not the kind of thing that we wanted to hold up for administrative purposes. That’s why in early 2013 it was contracted out.”

Finding an environmental company then willing to challenge the interests of waste industry behemoth Republic Services, the landfill owner, appears to have been a difficult task for the DNR, according to public records obtained by StLReporter.  So the agency turned to a trusted consultant to act as its de facto headhunter. The consultant contacted industry sources and ultimately recommended SWAPE. After getting the nod, SWAPE quickly lined up a subcontractor in St. Louis to do part of the work.  Nobody involved in the deal will talk about it openly, citing contractual obligations.

When asked how the DNR first became aware of an environmental firm on the West Coast, Norris says: “I can’t comment on how we came to know SWAPE.” The two-year-old memo he co-signed indicates the firm was recommended by another contractor. Speaking from an undisclosed location by phone he also refused to talk about the price tag of the emergency air-monitoring contract. “I can’t comment on payment or billing or anything like that.”

Following an-age-old American custom, Norris has moved out West. He now lives in the Rocky Mountain Time Zone. He prefers not to divulge exactly where. Norris has exited Jeff City. But questions swirling around his leave-taking still plague his former agency like a bad case of the winter flu.

A Letter from Dan

Dan Norris - DNR State ID card

Dan Norris – MDNR State ID card

Early last month, Norris wrote a broadside, condemning the agency for its cozy relationship with Republic Services,  the company responsible for the site in North St. Louis County that is the location of a pair defunct landfills: one that’s smoldering and the other that contains radioactive waste dating back to the Manhattan Project.  The two adjacent dumps are both part of a long-delayed  Environmental Protection Agency Superfund clean-up site. In his parting shot, the former DNR staffer alleged that politics unduly influences regulatory decisions within the state agency, and that DNR employees are under the gun not to talk about it. The revelations have caused a stir inside and outside of the DNR.

Activists and community members familiar with the situation tend to agree with the whistleblower’s assessment, seeing Republic–the second largest waste hauler in the United States — as their foe. They point to Bill Gates’ stake in the company as evidence of the power that it wields. They allude to the company’s checkered environmental record elsewhere, including another smoldering landfill fire in Ohio. They also agree with Norris’ contention that Republic’s generous campaign contributions have swayed state lawmakers.                           

In that sense, it is not what Norris revealed that is relevant so much as the act itself. He broke the code of silence inside a department that in recent years has operated more like the CIA than a state environmental regulatory agency. Unfortunately, Norris’ criticisms of the DNR  are vague, and his complaints raise more questions than answers. His account of agency wrongdoing is sketchy. He lays blame but buttons up when asked for details.

Under prevailing rules, DNR has been assigned the responsibility of containing an underground fire and reducing the noxious odors at the Bridgeton Landfill. The state maintains that Republic is liable for the expense of the emergency air sampling costs, but it’s unclear whether the company has ponied up. Reached at his office in Washington, D.C., Republic spokesman Russ Knocke was unaware of the contract and said he would have to do some homework to determine whether the state has been reimbursed.

The radioactively-contaminated West Lake Landfill next door is the bailiwick of the federal EPA. As the two bureaucracies advance their separate agendas at a glacial pace, the fire is heading in the direction of the nuclear materials.

In Norris’ absence, the status of the clean up has become more uncertain than ever. The building of a state mandated barrier to stop the fire from advancing has been indefinitely delayed.  In the interim, doubts mount, finger pointing increases, and nobody seems in control. Missouri Attorney General Chris Koster recently expedited the state’s case against Republic for violations filed two years ago, but there is no sign of a settlement. If anything, the company shows indications of being even more resistant to DNR’s appeals. Meanwhile, the activists are stepping up their calls for Gov. Jay Nixon to take action.

From outside DNR’s closed doors, the scenario seems bleak. There would appear to be no winners. However, department documents and correspondence show how one group consistently benefits from the intractable predicament — outside contractors.

A Quiet State of Emergency

Norris says he met DNR contractor Todd Thalhamer in 2008 at a training seminar. For the last several years, Thalhamer has given talks on landfill fires sponsored by Stark Consultants Inc., which is owned by Tim Stark, another DNR contractor. Thalhamer moonlights as a consultant, too, and owns Hammer Consulting Service in El Dorado, Calif. He works full-time as an environmental engineer for the state of California and is a firefighter in the El Dorado Volunteer Fire Department. Thalhamer received a bachelor’s degree in environmental resources engineering from Humboldt State University in Arcata, Calif. in 1992. His five-page resume indicates he worked on his first landfill fire in Sacramento County the same year he graduated from college.  He has been under contract as a landfill fire expert for the DNR for the last four years.

Reached by phone in California, Thalhamer says the reason the DNR retains his services is because he has a unique skill set. “The only other individual that I’m aware of that has my expertise is a colleague of mine in British Columbia, and he’s outside the United States,” says Thalhamer. “I have a very unique background. I’m a fireman [and] a registered civil engineer. I do environmental emergency response in California and with EPA,” he says. “I’m one of the guys who trains the landfill owners and operators throughout the United States. My name is known in the industry.”

“Once DNR got Todd Thalhamer on contract,” says Norris, “Todd was able to inform us about certain things that we needed to be watching as far as the gas extraction well field, [and] additional data that we should be tracking.” Besides Norris, the team included two other DNR staffers, consultants Thalhamer and Stark and, a graduate student. “We tracked the landfill gas data from that well field from month to month. We started plotting it on maps to see what the overall condition was. At some point, we started to see signs that the event was spreading and intensifying.”

Then the odors at the landfill increased.

“By 2012, I was making a push that we really needed to collect some air-monitoring data to get a better handle on what the potential risks were from the landfill smoldering event, as well as just what risk that might be as far as exposing the community,” Norris says.

The increased odors coming off the Bridgeton Landfill in 2012 gave DNR cause for concern as public complaints mounted over the stench. This set the stage for the events that would lead to the emergency procurement contract in early 2013 in which Thalhamer would play a pivotal role.

By this point, the California consultant had the DNR’s ear, and his suggestions  extended beyond the technical aspects of  fighting landfill fires. When odor complaints jumped in early 2013, Thalhamer told the DNR to openly request EPA air testing as a way of calming residents fears.  “We need to ensure the public that the odor is just that — an odor and not a health risk,” advised Thalhamer.  “The quickest way to reduce the environmental worry in the community is to request the US EPA perform community and facility air sampling. Contractor data should be as valid as US EPA but we need to show the community we are concerned enough to make this request.”

A few months earlier in December 2012,  the DNR had held a one-day training session presented by Thalhamer at Republic Service’s headquarters on St. Charles Rock Road. Those in attendance included, DNR staffers, representatives of the Pattonville and Robertson Fire Protection Districts, and officials from the St. Louis County Health Department. Brenda Ardrey of the DNR arranged the meeting and Republic, picked up the lunch tab for the sandwiches from a nearby Jimmy John’s restaurant.

Thalhamer charged $150 an hour for his services. Including various conferences calls, planning and travel expenses, the bill totaled $6,695.49.

His performance impressed Ardrey so much that she arranged for Thalhamer to speak the next summer at the Missouri Waste Control Coalition’s annual conference at the posh Tan-Tar-A resort on the Lake of the Ozarks. The 400-member coalition is comprised of private waste companies, government regulators and consultants.

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The conference setting had the trappings of a country club, including a golf course, where the MWCC held its annual tournament over the same weekend. The clubby atmosphere between business and government regulators goes beyond  the 18th hole, however.  Ardrey’s boss Chris Nagel, director of DNR’s Solid Waste Management Program, sits on the advisory board of the waste coalition, and Larry Lehman, DNR’s chief enforcement officer, is on its board of directors. Besides Lehman, other board members include Randy Tourville of Republic Services and Lisa Messinger of EPA Region VII.

After DNR decided to fund air sampling at Bridgeton Landfill in early 2013,  Thalhamer put SWAPE on DNR’s radar. Thalhamer and one of the owners of SWAPE had both worked on a case related to another Republic landfill fire in Ohio years earlier. Within a week, SWAPE had secured the DNR’s air-sampling contract without going through the regular bidding process.

That’s because a month earlier, DNR had quietly invoked an emergency clause in the state statutes and allocated more than a half a million dollars for the job. Internal DNR emails show officials carefully researched the matter to make sure the agency followed the letter of the law in declaring the emergency.

Few outside the DNR knew about the emergency. No sirens went off. The governor didn’t issue an evacuation order. Residents were not kept fully in the loop. Instead, agency insiders kept the situation hushed. The only other company that expressed interest in the contract submitted a proposal that was less acceptable than SWAPE’s.

Unlike others wary of consequences, SWAPE showed no fear of rousing the ire of Republic because it had already had a falling out with the waste giant in the past. On March 21, within 48 hours of receiving the contract, Paul Rosenfeld of SWAPE flew to St. Louis for a one-day meeting with DNR officials.

A subcontractor identified in an invoice only as JB also attended the talks. John Blank is the the owner of American Environmental Laboratories, a St. Louis-based firm that SWAPE hired as a subcontractor.  Blank says the terms of his company’s involvement remain confidential, but he does reveal that SWAPE issued the requirements for conducting the air sampling — “the what and the how” — and the St. Louis lab reported the results back to SWAPE and the DNR.

The meeting between SWAPE and the DNR lasted 11 hours, according to public records. Rosenfeld charged $195 an hour. The subcontractor charged $120. SWAPE billed DNR a total of  $5,821.86 for the day.

The terms of the emergency air-monitoring contract approved by DNR on Feb. 15, 2013 stipulated a 60-to-90 day deal valued at $600,000. SWAPE’s incomplete proposal submitted on March 29 totaled $594,060. After the contract was signed, invoices and purchase orders were issued in quick succession.

  • On March 29, 2013, SWAPE submitted an itemized invoice of $15,198.32 for services rendered.
  • On April 2, 2013 the state paid the company another $6,000 for expert testimony.
  • A state purchase order for SWAPE’s products and services dated April 3, 2013, shows a bottom of line of $349,000.

Whereas, SWAPE submitted detailed, line-item accounting of services rendered, the state purchase order only lists itemized expenses as “environmental, ecological and agricultural services: miscel [miscellaneous].”  SWAPE continued its emergency air sampling under the initial arrangement through August 2013.

Ardrey referred all questions about the Bridgeton Landfill to the DNR information officer Gena Terlizzi.  Voice and email messages left for Terlizzi went  unreturned. When contacted, Beth Glickman, office manager for SWAPE, said: “We typically don’t talk to the press. We are still under contract with them (the DNR) and won’t be able to answer any questions.”

When asked  about his role in the process, Thalhamer says: “As you probably know, I’m under contract with DNR so I can’t speak to  issues surrounding that. … I understand your plight. I work for a government agency and I fight the same thing that you’re asking me for. But I also know contract law and know I’d be in jeopardy of breeching the contract.” Toward the end of the conversation, Thalhamer suggests digging deeper, and offers journalistic advise, including filing a state Freedom of Information request.  Speaking about the SWAPE contract, he says: “There’s some interesting information there if you can get that Rubik’s Cube figured out.”

Less enigmatically, Norris concedes that there may be an appearance of  something amiss in the state’s handling of the emergency air-monitoring contract, but he has no doubt that the public’s interest was best served by the decision.

“SWAPE had the expertise, the history of sampling around landfill fires elsewhere” says Norris. “I think that they were probably in the best position at that point and time to do the air sampling whether it was done by them or a subcontractor that was progressing in a fashion that was protective of public health,” Norris says.

“There was additional concerns from the community living around the site in large part due to the increase in odors, Norris says.  Benzene and certain others [chemicals] were elevated in the landfill gas. There were certain chemical compounds that appeared to be elevated downwind versus upwind of the landfill at least slightly.”

Air sampling at the site measured  dioxins, furans, benzene, aldehydes, reduced sulfur compounds and volatile organic compounds, all of which can cause serious health effects through long-term exposure. But  test results at the Bridgeton Landfill analyzed by the Missouri Department of Health and Senior Services found chemicals of concern to be below the threshold of concern for human health over the time frame of the emergency air sampling contract.

Norris doesn’t argue with those findings, but he does assert that politics is influencing science. “Politics seems to be invading the technical work to a greater extent than when I first started that’s for sure, [but] we were able to accomplish quite a bit even within the political confines during this event, especially in 2013,” he says.

Norris makes clear that his resignation and subsequent letter are unrelated to the SWAPE memo or the hiring of outside contractors in general.  “It was really kind of broader issues at the department,” he says. He mentions bureaucratic inefficiencies, the role of politics and lax enforcement as reasons for his discontent and departure, but stops short of placing the onus on anything specific, leaving the listener to turn Rubik’s Cube for himself.

Unit A at 205 Riverview Drive is vacant. A stack of native limestone blocks stands by the entrance, the only vestige remaining of the apartment’s last tenant. A for-rent sign is posted in the front yard and a sodden edition of the Jefferson City News-Tribune lies in the gutter. The brick duplex is located on a residential street in the sleepy Missouri capital, where on a mild January day a woman washes her shiny SUV in a nearby driveway. With a dog barking in the backyard and dinner on the stove in the kitchen, the occupant of Unit B leans against his front door jamb, warily answering questions about Dan Norris’ whereabouts. He is tight-lipped when it comes to the details, but says his neighbor of eight years moved out about three weeks ago and didn’t leave a forwarding address. — C.D. Stelzer

The Earth City Connection

quanterra

Twenty years ago an address in Earth City appeared in a story that I did about an EPA contractor with clear conflicts of interest. I uncovered that the testing lab partially owned by  the company responsible for the Times Beach Superfund clean up had provided questionable testing results related to the site to the agency.  Moreover, the name of the laboratory at 13715 Rider Trail North had changed, adding another layer of obfuscation to an already murky business. The previous operator of the lab at the same location had been convicted of fraud. In the 21st-Century, the name has changed again, but the address remains the same. Now the laboratory at the same address is called TestAmerica, and it is still doing environmental testing — except now it’s at the radioactively-contaminated West Lake Landfill site.  

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Riverfront Times

Aug. 26, 1996
by C.D. Stelzer

When IT Analytical Services merged with another company and became Quanterra Environmental Services in 1994, the nascent laboratory didn’t even bother to change the phone number. The newly formed company also remained at the same location, 13715 Rider Trail North, in a strip of innocuous one-story offices known as the Business Center in Earth City. The doors to the lab were locked last Saturday, and mirror windows made it impossible to see the interior.

Corporation records at the Missouri secretary of state’s office in Jefferson City show that Quanterra was officially dissolved as a business in the state in late 1994. Nevertheless, the lab took part in important tests of stack emissions conducted in November 1995 at the Times Beach dioxin incinerator, an Environmental Protection Agency (EPA) Superfund cleanup near Eureka.

The test results assured the EPA, the Missouri Department of Natural Resources (DNR) and the public that the incinerator would operate safely. Based on these test results and other criteria, the DNR issued a requisite permit for the incinerator to operate earlier this year.

Despite the mirror windows at the lab and the smoke now flowing from the incinerator stacks, this much is clear: IT Analytical was owned by International Technology Corp. (IT), and Quanterra, its successor, is still partially controlled by IT — the builder and operator of the Times Beach dioxin incinerator.

IT, in turn, has a contract with Syntex, the corporation held liable for disposing of dioxin-contaminated soil at Times Beach and more than two dozen other sites in Eastern Missouri. In short, the lab involved in testing incinerator emissions is partly owned by the company that operates the incinerator.

Steve Taylor, an organizer for the Times Beach Action Group (TBAG), objected to the Quanterra-IT relationship in a meeting with high-level EPA officials last Wednesday night at the Hilton Hotel in Frontenac. Robert Martin, the ombudsman from the agency’s Washington, D.C., headquarters, chaired the meeting, which was attended by 15 citizens, an aide to U.S. Rep. Jim Talent (R-2nd) and two other EPA officals.

“We have always had problems with how the trial burn was conducted. Now we have found that IT — the owner of the incinerator — was solely responsible for the physical custody of the stack samples,” Taylor says. “There has always been a serious problem with credibility with (EPA) Region VII and the information that we’ve received pertaining to this incinerator. To date, this is probably the most blatant example of allowing those who have a financial interest in this cleanup to proceed without any oversight.”

That a laboratory with ties to the incinerator operator would be allowed to handle test samples from a Superfund site is enough to raise concerns, but there is another nettlesome detail that casts doubt on the credibility of the lab work. In 1990, IT purchased the assets of metaTRACE, a laboratory located at the same address in Earth City and having the same phone number as the two previously cited labs.

In the year preceding the acquisition, metaTRACE came under scrutiny for conducting fraudulent tests for the EPA, including faulty soil analysis at Times Beach and other dioxin sites in Eastern Missouri. Ultimately, the EPA canceled metaTRACE’s contracts and two company officials pleaded guilty to fraud charges. The rescinded contracts had a value of more than $8.7 million. Most of that money was earmarked for EPA Region VII, which includes the St. Louis area.

After purchasing metaTRACE, IT moved its own analytical operation into the defunct lab’s Earth City office. MetaTRACE didn’t dissolve until 1992, according to Martha Steincamp, head counsel for Region VII. So it appears IT Analytical in some manner shared the facility. IT even hired some of metaTRACE’s employees, Steincamp concedes.

When the sign on the front door changed to Quanterra in 1994, IT Engineering conveniently moved in next door. Again, if this is not disturbing enough, state records show that Quanterra was dissolved in December 1994 for failure to file an annual report. Quanterra,in other words, doesn’t even exist as a corporate fiction in the state.

IT created Quanterra in May 1994, when it merged IT Analytical with Enseco, an environmental test lab owned by Corning Inc. Originally, each company held a 50 percent stake in the joint subsidiary. IT’s share of the lab has since decreased to 19 percent, following a $20 million buyout by Corning in January. The change in the percentage of ownership, however, did not take place until after critical stack-emissions tests were conducted in November. The results of those tests were published in January. Quanterra’s name appears on the title page of that report.

Despite the lab’s obvious role in the stack tests and its connections to IT, Bob Feild — the EPA project manager at Times Beach — denied knowledge of Quanterra’s participation at last week’s meeting in Frontenac. Under questioning by Mick Harrison, an attorney for the Citizens Against Dioxin Incineration (CADI), Feild stated: “I’m not aware of any involvement that they (Quanterra) had in the chain of custody.”

Feild’s denial contradicts documents provided to the RFT by the Region VII office last Friday. The documents show a representative of Quanterra signed over stack-emissions samples to an employee of Triangle Laboratories of Durham, N.C. Triangle was charged with analyzing the samples.Nevertheless, a lapse of seven to eight days existed between the time the samples were collected and the point when Quanterra handed them over to the other lab. Environmentalists familiar with the case say the time lapse could invalidate the tests results, if the samples were not stored and handled properly.

In a phone interview on Monday, Feild dismissed all of these issues as inconsequential. Feild argued that it is standard procedure for the incinerator operator to collect test samples. He claimed all aspects of the tests were overseen properly by the EPA and that safeguards prohibited any kind of manipulation of the findings. “We haven’t done any research as to the current status of a company called Quanterra,” Feild says. “It doesn’t really matter if IT themselves did the work or if they paid a partially owned subsidiary to do the work. The contractual relationship between the operator and Syntex is really not pertinent here. It’s not our concern, and we certainly don’t have that information. We don’t know who Quanterra is under direct contract with.”

The RFT filed a Freedom of Information Act request with the EPA on this matter last Friday. In a letter to EPA regional administrator Dennis Grams last week, Rep. Talent, whose district includes Times Beach, requested “all chain of custody documents for all stack samples collected during the dioxin stack test, which took place in November of 1995.” A spokesperson for Talent could not be reached for comment. Spokespersons for IT, Quanterra and Corning did not return calls placed to them.

An official at the EPA’s Criminal Investigations Division in Kansas City would not confirm or deny whether an inquiry had been initiated into the matter.

This latest controversy follows an announcement in July that the completion date for the incineration has been pushed back to early next year because an estimated 70 tons of additional contaminated dirt will need to be burned.

Since initiating operations in March, the incinerator has been plagued by a series of emergency releases that have spewed unknown quantities of untreated dioxin-contaminated particulate matter into the atmosphere.

The EPA’s own dioxin draft reassessment concludes that dioxin is a likely human carcinogen and is responsible for reproductive and immunological problems. EPA research further indicates that everyone is already overexposed to the toxin, and incineration is one of the sources of the pollution.