Lakeside Reclamation Landfill
The Oregon Department of Environmental Quality has issued Grabhorn Inc. a $22,071 penalty for the company's continuing failure to provide adequate financial assurance for post-closure environmental monitoring and maintenance of its Lakeside Reclamation Landfill at 14930 SW Vandermost Road, Beaverton.

Oregon law requires most permitted landfills to carry financial assurance for the costs of environmental maintenance and monitoring after the landfill is closed. This is a requirement of the Solid Waste Disposal Site Closure Permit that DEQ issued to Grabhorn Inc. for the Lakeside landfill on March 27, 2008. This requirement ensures that sufficient financial resources will be available to continue environmental monitoring and maintenance of a landfill site if the owner or operator is unable or unwilling to do so in the future.

On Feb. 16, 2010, Grabhorn Inc. submitted to DEQ its 2009 financial assurance annual report and recertification. DEQ's review identified numerous errors in the methods the company used to estimate post-closure costs and to demonstrate adequacy of the financial assurance mechanism currently in place. As a result of these errors, DEQ determined that financial assurance for post-closure care of the Lakeside Reclamation Landfill is deficient by approximately $1.3 million.

DEQ notified Grabhorn Inc. in writing of this deficiency on June 2, 2010 and requested that the company take corrective action by July 2, 2010. To date, Grabhorn Inc. has failed to secure the additional financial assurance necessary for post-closure financial assurance. This failure is an ongoing violation of Oregon law.

A $13,271 portion of the civil penalty represents the economic benefit Grabhorn Inc. gained since Feb. 16, 2010, by avoiding the annual costs to establish and maintain the necessary additional financial assurance. If Grabhorn Inc. secures financial assurance that meets requirements, DEQ may reduce the civil penalty accordingly.