CUC accuses DOJ of overreach in its court filings

The Commonwealth Utilities Corp. filed Monday in the U.S. District Court its preliminary response to U.S Department of Justice’s filings, disputing several points that it said were inaccurate statements, according to CUC executive director Alan Fletcher.

Fletcher told Saipan Tribune yesterday that DOJ’s 97-page filing contained numerous inaccuracies, “most of which CUC has addressed.”

Fletcher assured that CUC continues to make steady progress on projects that are required under stipulated orders 1 and 2.

Stipulated order 1 focuses on CUC’s quarterly progress that includes staff updates, organizational structure, management structure, procurement procedures and training programs, and water and wastewater operations.

Stipulated order 2 focuses on replacing an eight-inch pipeline in Lower Base, replacing the dilapidated Tank 102, and oil remediation actions at Power Plants 1 and 2, among others.

CUC’s chief legal counsel James Sirok said that DOJ submits its filings late and just before scheduled hearings, giving CUC little chance to respond before appearing in court.

“The effect of these filings has been to prejudice the utility, and throw it off balance with competing demands on its time as it attempts to address the actual issues requested by the court as well as the ongoing critical construction projects,” Sirok said.

He noted that CUC has asked DOJ to coordinate their response to give CUC a chance to adequately respond before hearing dates.

In the latest instance, Sirok said that CUC had only two business days to respond after the court brought to CUC’s attention that DOJ had filed a three-page letter with the court.

Inaccuracies

Although he appreciates the U.S. Environmental Protection Agency’s support in recruiting staff, Fletcher said that naming CUC’s chief accountant as their acting chief financial operator is “reasonable until it can fill the position.”

“The chief accountant is a certified public accountant, licensed by the Guam Board of Accountancy, and has approximately 10 years of management level utility experience,” Fletcher said.

He also said that EPA failed to mention that it also has obligations to ensure that all aspects of the master plan is properly included, such as the groundwater plan.

“EPA approved the scope of work for the master plan and in that scope, the consultant was supposed to only make recommendations about the groundwater plan. Now, EPA is requiring that CUC have the consultant actually draft the plan,” Fletcher said.

CUC’s petroleum and compliance manager Andrew Longworth belied EPA’s concern that CUC “continues to fail to address the ongoing [oil] contamination” at the power plants in Lower Base, saying that it is incorrect.

“Both the number and size of spills have reduced significantly over the years. To characterize a spill within secondary containment as a reportable discharge is another instance of overreach,” Longworth said.

Longworth also responded to a claim by EPA’s on-scene coordinator for Region IX, Michelle Rogow, who said that the oil/water separator system discharges are a source of subsurface oil contamination and migration into the ocean at power plants 1,2, and 4 and the Rota power plant.

“There is no evidence that treated water from the current oil/water separator system is causing an ongoing reportable release into the waters of the U.S,” Longworth said.

Fletcher assured that CUC continues to make steady progress on both stipulated orders and projects.

“This progress is in spite of the many hardships we experience,” he said.

“While we agree with the EPA’s desire to complete more projects and complete stalled projects, such as Tank 102 and oil pipeline, any assertions that CUC has ignored its responsibility is simply not true,” he added.

Fletcher said that CUC has complied with the stipulated orders and routinely coordinates and communicate with all involved parties.

He noted that government arrears jeopardize the operational stability of CUC and its ability to fund more projects.

“Future successes are highly dependent on maintaining a financially stable utility. Today we do not recover our costs of service and run deficits in water and sewer utilities; the electric utility is not in as bad a shape operationally, but there is no money for additional stipulated order no. 2 projects,” Fletcher said.