Strickland pays visit to Biomass

Published 12:00 am Thursday, October 16, 2003

SOUTH POINT - Still awaiting a response from the United States Department of Agriculture, U.S. Rep. Ted Strickland visited South Point Tuesday to continue to seek answers as to why the mounds of tobacco ever ended up in South Point in the first place.

Strickland (D-6th) met with Dr. Bill Dingus, executive director of the Greater Lawrence County Area Chamber of Commerce and the Lawrence Economic Development Corporation, South Point Mayor Bill Gaskin and South Point Council members David Classing, Ron West, Robert Armstrong and Marlene Arthur to check on clean up efforts and to continue to gather information about the tobacco disposal contract with Biomass Energy LLC.

Earlier this month, the Congressman requested an investigation into the Biomass contract and is awaiting a response from Acting Inspector General Joyce Fleischman.

Email newsletter signup

Strickland is seeking answers to several questions such as if the USDA considered Biomass' financial standing when awarding this contract, what led USDA officials to refute claims that Biomass owed delinquent taxes, how many taxpayer dollars have been received by Biomass, and does the USDA have plans to recoup any of that money?

"Why would the USDA enter into an agreement with this company when they had not paid their taxes and do not have an operable facility?" Strickland asked. "Is the culprit Biomass, incompetence at the USDA or some combination of both."

Steve Freeman, a tobacco specialist for the USDA, was expected to be in South Point but was unable to make it. Freeman indicated to Classing that he would be in the village on Friday.

This issue began in December of 2002 when Biomass was awarded a contract to destroy 121,448 tons of surplus tobacco for $19.25 a ton, totaling a $2.33 million deal.

Shipments began this spring but were stopped by the USDA in March after concerns were raised by the Ohio EPA about permits needed for the storage and disposal of the material. The EPA later ordered that the 10,181 tons already received to be removed.

Because all parts of the EPA orders to remove the product were not met on time, the OEPA referred the case to Ohio Attorney General Jim Petro's office on July 22. Representatives for Petro's office remain in discussions with Biomass to see if the situation can be resolved without litigation.

Biomass CEO Mark Harris said in the past the company plans to conduct a $100 million renovation of its plant that would begin in April and would be completed in 12 to 15 months. He later said the start date was October.

Strickland said that the first thing that he will emphasize is that Biomass must pay their taxes if it hopes to have any credibility within the community.

Biomass owes $109,125 in delinquent taxes for the 2001 and 2002 tax years on 13 parcels of land in South Point, according to the Lawrence County Auditors Office.

"It seems that this company has soured its relationship with the community and tarnished its image and I don't know why," Strickland said.

In a related issue, the South Point Board of Education approved a resolution Monday that requested Lawrence County Prosecutor J.B. Collier Jr. to proceed with the collection of the delinquent taxes.

The board of education would receive approximately $72,000 of that money, according to the auditor's office.

"Our job is to protect the tax money that we are entrusted with which includes staying abreast of what is delinquent," said South Point Schools Treasurer Dan McDavid.

Councilman Classing provided part an answer that had been sought by the Congressman - how much money has Biomass received to date?

Classing said Freeman indicated to him last week that Biomass had been paid $100,000 and seeks another $100,000 when the tobacco is totally removed.

Dr. Dingus indicated that Biomass had removed the two large piles of tobacco from the property and that the company did a good job removing it from the fly-ash pond. He also indicated that he is scheduled to meet with

Harris to develop a positive relationship as neighbors.

Regardless, boxes of the tobacco remain in and near the bunker building.

Councilman West said he had worked in the plant years ago although it had been a few years since he had been inside. Still, he doubted that Biomass could even find the parts needed to retrofit the facility and make it operable.

"That boiler has been cannibalized for 25 years. It was not in good shape years ago," he said. "It is not impossible, but it is surely not feasible."

While everyone agreed that they would like to see more jobs come to the village, councilwoman Arthur said she is happy that they will not be burning the tobacco at all.

"The health issue was my major concern. I know what it would have done to my sister if they had burned the tobacco," Arthur said. "It doesn't do any good to have industry and bring in jobs if you kill the people."

Mayor Gaskin said he is happy to see that someone is looking for answers.

"I think it is the USDA's next move to explain the questions you have asked," Gaskin said. "I think they are all legitimate questions."

The USDA has indicated in previous conversation with The Ironton Tribune that it went by its technical requirements and the information provided by Biomass indicating that there would be an operable facility.

It was also indicated that several local contractors may still be owed money by Biomass for work performed in the past. Classing said that two individuals told him Tuesday they were still owed approximately $10,000 combined.

Any other vendors, contractors or businesses who are owed money by Biomass Energy or Biomass Group LLC can contact The Ironton Tribune at (740) 532-1445 ext 24.

The problem escalated in June when a large pile of tobacco caught fire on two separate occasions. The first was allegedly considered arson and the second was deemed to have started spontaneously, according to the South Point Volunteer Fire Department.