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DPNR Working on Deal to Clean Up “Red Mud” Mound

Sen. Sammuel Sanes voiced his concern that the mound of red mud was getting closer to the sea.Nothing is final, but an agreement on cleaning up the giant mound of dusty, red bauxite aluminum refining tailings on St. Croix’s South Shore may be near, Commissioner of Planning and Natural Resources Alicia Barnes told the Legislature during budget hearings Monday.

Local and federal enforcement officials have been trying to assess fault and cleanup responsibility for the noxious metallurgical wastes deposited on the site over several decades, even as several former owners of the plant and the land it sits upon fight protracted court battles over who is holding the bag.

In the wake of federal mediation begun in February, Attorney General Vincent Frazer has approved the concept of a global settlement of all claims regarding the bauxite tailings.

If it comes to pass, the settlement would include remediation and restoration of the natural resources at the facility, Barnes said. Parties to ongoing mediation include St. Croix Alumina, Alcoa World Alumina, St. Croix Renaissance Group, Lockheed Martin, Century, Vialco and the V.I. government, she said.

“The red mud seems to be getting closer to the sea,” said Sen. Sammuel Sanes, asking Barnes what DPNR is doing to contain and control it while waiting for the legal battles to conclude. DPNR performs routine inspections and is in regular contact with current owner St. Croix Renaissance about stabilizing the area, she said.

“The ongoing case is complicating things as far as determining who is the responsible party,” Barnes said.

DPNR was before the Senate Finance Committee Monday to defend the agency’s budget request.
For 2012, Gov. John deJongh Jr.’s proposed budget for the large agency tasked with everything from issuing building permits to promoting V.I. cultural education is $36 million—with $11.2 million, or 31 percent, for wages and salaries; and $4.1 million, or 11 percent, for fringe benefits. Of the total, $7.8 million, or 22 percent, of funding will come from the General Fund, and $23.2 million or 64 percent is federal. Another $5 million, or 14 percent, is from other special funds.

With a heavy reliance on federal funding, despite local cutbacks, DPNR’s $36 million total 2012 budget is a considerable increase from 2011’s grand total of $27.4 million.

The 2012 recommended General Fund appropriation is $61,000 less than fiscal 2011 appropriation- less than a 1-percent change. Other local funding is expected to increase about 16 percent to $5 million and federal funding should shoot up 52 percent, to $23.2 million.

Some of the increase in local funding is because DPNR has enhanced collection of submerged lands fees, collecting over $1 million in fees and assessing $44,000 in fines, Barnes said. Fee collection is up, while fines are down.

“The significant reduction in fines, compared to prior years, can be attributed to education, outreach and enforcement strategies to ensure compliance,” Barnes said.

Sen. Janette Millin-Young asked Barnes to comment on reports DPNR had been hiring numerous employees, even as the rest of government is cutting to the bone and unable to hire.
A very few high-priority positions have been filled, but “overall staffing levels have been reduced,” Barnes said. The department has 264 employees, with 100 paid directly from federal funds, Barnes said.

DPNR has 11 divisions;
— archeology and historic preservation;
— business and administrative services;
— building permits;
— coastal zone management;
— comprehensive and coastal zone planning;
— environmental enforcement;
— environmental protection;
— fish and wildlife;
— libraries, archives and museums;
— V.I. Cultural Heritage Institute;
— V.I. Council on the Arts.

No votes were taken at the information gathering hearing. Present were Sanes, Millin-Young, Sens. Carlton “Ital” Dowe (chairman), Shawn-Michael Malone and Nereida “Nellie” Rivera-O’Reilly. Absent were: Sens. Celestino White and Louis Hill.

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