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Clock starts ticking for CUC to comply with stipulated orders
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Posted on Mar 13 2009
U.S. District Court for the NMI Chief Judge Alex R. Munson signed two stipulated orders this week that seek to reform and bring into compliance the Commonwealth Utilities Corp.’s s wastewater plants and collection systems.
The orders also required the utility company to follow regulations regarding public drinking water systems; the five power plants; and an oil transfer pipeline.
In November, the U.S. Department of Justice and the Environmental Protection Agency filed a civil suit against CUC, claiming the utility agency has committed violations against the Clean Water Act and Safe Drinking Water Act. The suit was accompanied by the two stipulated orders, which means that the CNMI government agreed to the terms and conditions being required of it by the EPA. The requirements set completion dates—some within 30 days—that the utility agency must meet or get fined thousands of dollars each day.
With the orders now signed, the time period for completion is now underway.
During a presentation to the Legislature last month, Bruce Megarr, CUC deputy director for the Water and Sewer Division, said the two projects that must be completed within 30 days are at least halfway done.
The schedule of the closing of the Tanapag and Achugao springs was 90 percent complete and another project—testing for bin classification on the three islands—was 50 percent complete. The testing will cost $100,000. Of the projects that must be completed within 90 days, some have been completed. CUC is allowed two years for some projects such as cleaning the entire sewer pipe system.
According to the presentation, the cost incurred for 2009 to complete the necessary projects is $5.8 million. For 2010, the cost decreases to $3 million and in 2011 it drops to $2.8 million.
The biggest hurdle to meeting the orders is the budget, Megarr told lawmakers. For fiscal year 2008, revenue was about $6.3 million while expenses were about $9.9 million, a shortfall of $3.6 million. The numbers are unaudited.
