Granholm and the DEQ V Terry Ross, Alternative Fuels, L

Granholm and the DEQ v Terry Ross, Alternative Fuels, L.C., and Michigan Scrap Tire Processors, L.C.

On November 22, 2004, Alternative Fuels, L.C. (Alternative Fuels), was ordered by the Allegan Circuit Court to pay a $5.6 million judgment for cleanup costs and $89,100 in civil fines to address an illegal tire pile. Alternative Fuels was found liable earlier this year for violations of Part 169, Scrap Tires, and Part 115, Solid Waste Management, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA), occurring at the tire pile formerly owned and operated by Gordon Lyons located in Martin Township, Allegan County. The tire pile contains approximately three to five million tires and is located adjacent to US 131.

As part of the penalty awarded by the court, the DEQ was given access to the site for removal of the tires. Allegan County has submitted an application for a $1 million grant to remove a portion of the tires in 2005.

On February 12, 2004, Alternative Fuels, L.C. (Alternative Fuels), was found liable on motion for summary disposition brought by the Department of Attorney General (DAG) on behalf of the DEQ in Allegan Circuit Court. Alternative Fuels was found liable for violations of Part 169, Scrap Tires, and Part 115, Solid Waste Management, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA), occurring at the tire pile formerly owned and operated by Gordon Lyons located in Martin Township, Allegan County. The tire pile contains approximately three to five million tires and is located adjacent to U.S. 131.

On March 21, 2001, Alternative Fuels purchased the property containing the illegal scrap tire collection site from Terry Ross. Terry Ross had previously purchased the property from his brother-in law, Gordon Lyons. On June 5, 2001, Alternative Fuels conveyed the property to Michigan Scrap Tire Processors, L.C. (MSTP). Judge Gary Stewart found Alternative Fuels liable for bonding, registration, and operational violations of Part 169 and Part 115. Judge Stewart agreed with the DAG argument that collateral estoppel prevented MSTP to be used as a “shield” for liability by Alternative Fuels. Alternative Fuels had previously attempted to use MSTP as a shield for liability in Granholm v Miller, Alternative Fuels and MSTP, also litigated in Allegan Circuit Court.