A few weeks ago I had dinner with Jim Knott from Northbridge, Massachusetts, and I couldn’t believe the horror story he told about the Environmental Protection Agency (EPA) and its Gestapo approach to law enforcement.

Knott started Riverdale Mills Corp. in 1979 where he turned an abandoned paper mill into a small manufacturing facility that makes galvanized steel fencing and nets for lobster traps and salmon-rearing facilities. On November 7, 1997, Knott was sitting in his office when armed EPA agents burst into the building, threatened to arrest Knott and his employees if they didn’t cooperate.

EPA claimed Knott was violating the federal Clean Water Act by dumping polluted wastewater into the city’s sewer system. As part of the manufacturing process, Knott treats his products with a mild acid, but he carefully monitors the process to ensure that the pH factor of the wastewater flowing into the city treatment facility is as close to neutral pH7 as possible. Knott’s permits said he could not discharge water with a pH of less than 5.

Yet the EPA claimed that Knott was discharging highly acidic water with a pH of 4 or even 2. Indicted by a federal grand jury for criminal violation of environmental laws, Knott faced six years in prison and a $1.5 million fine.

As it turns out, the EPA’s inspection records had been doctored. An analysis by a former FBI handwriting expert revealed the records had been altered with entries of pH7 changed to pH4 or pH2.

U.S. District Judge Nathaniel Gorton threw out the government’s “evidence” forcing the U.S. Attorney to dismiss the case. Yet the court did little to restore Knott’s reputation, and in the wake of the publicity, a Bank Boston loan officer threatened to cancel the firm’s $2 million loan agreement.

So, Knott sued EPA seeking compensation for his legal fees and lost business. EPA said it would agree to a settlement on one condition: That the court wipes the record clean for the agency – not just a gag order but a complete erasure as if the outrageous incident had never happened.

Knott’s answer was swift and clear: “No way.” So the legal battle continues, and Knott vows to spend every nickel he has to make sure EPA doesn’t do this to some other unsuspecting small business.

Knott’s EPA nightmare is not unique. In its broadcast on Knott’s run-in with the EPA, CBS 60-Minutes also featured the story of Steve McNabb, a small lock manufacturer in North Carolina. He showed up at work one day to find the EPA, guns drawn, going through his business. EPA claimed a disgruntled employee had told them McNabb was dumping acetone down the sewer. In fact, McNabb never used that chemical in any part of his manufacturing process.

Knott and McNabb are small manufacturers who put their life savings on the line to start a business. They employ people in towns where even one or two jobs are important. Why would armed EPA agents burst into their businesses brandishing weapons and making threats? The answer may be found in the fact that the EPA has never used similar Gestapo tactics on large, wealthy companies that have ready access to big law firms and public affairs experts.

Perhaps the agency thinks the small firms can’t fight back. Well, in Jim Knott’s case, they picked on the wrong guy.

Knott should not have to fight this battle alone. Congress should re-examine how EPA operates and seriously consider taking away their guns and Gestapo powers.

Washington State Chamber of Commerce

Association of Washington Business
PO Box 658 1414 Cherry St. SE
Olympia, WA 98507
(360) 943-1600