Cal Am agrees to penalty in arsenic contamination case.

Last Friday, District Attorney Dean Flippo filed a complaint against California American Water for alleged violations of California health and safety code, and unfair business practices. 

Later that same day, Flippo and Cal Am entered an agreement in Monterey County Superior Court. Cal Am agreed to pay nearly $390,000 without admitting wrongdoing. That includes court fees and penalties to the DA and to the Monterey County Department of Health.  

Beginning in 2008, Cal Am began treating groundwater for arsenic removal to comply with U.S. Environmental Protection Agency rules, according to court papers. (Arsenic is naturally occurring in some groundwater of this region.)

Sludge containing arsenic was produced in Cal Am's treatment process, and that sludge is considered hazardous waste if it exceeds a certain concentration of arsenic.

"Until 2013, Cal Am did not consistently test its sludge residuals for arsenic," the complaint states. "As a result…Cal Am disposed of, transported, and stored hazardous waste improperly." 

In their complaint, Flippo and Deputy DA Dije Ndreu list at least 12 violations of California health and safety code, and also allege Cal Am was engaged in fraudulent business practices because of the inaction on proper testing. 

Ndreu says Cal Am was cooperative in settlement talks and responsive once the investigation began. "They were on the right track," she says. "It's more expensive and a lot more work to do the proper channels and send it off as hazardous waste."

For years, sludge piles from Cal Am's Ambler, Toro and Ryan Ranch plants was treated as regular trash and shipped off to the landfill. As part of the settlement agreement, the company agreed to conduct more extensive testing as required by California law.

The investigation into proper disposal began thanks to an anonymous tip to the California Department of Toxic Substance Control.