[ADEQ Media] ADEQ Director Owens, AG Goddard Announce Record $12 Million Civil Environmental Settlement

[media@lists.azdeq.gov]

ADEQ Director Owens, AG Goddard Announce Record $12 Million Civil
Environmental Settlement

PHOENIX  (Dec. 20, 2007) -  Arizona Department of Environmental Quality
Director Steve Owens and Attorney General Terry Goddard today announced
a $12.1 million civil environmental settlement, the largest in state
history. 

The settlement resolves a 2005 lawsuit brought against land developer
George H. Johnson, several of his companies, excavation contractor Jack
McCall, 3F Contracting, Inc. and Preston Well Drilling. The defendants
agreed that the State would be paid $12,111,500 to resolve all claims in
the case.

"This record-setting settlement reflects the importance of this case,"
Director Owens said.  "We felt strongly that serious violations of the
law had occurred." 

"We are committed to enforcing our environmental and heritage protection
laws to preserve the priceless resources that make this state unique,"
Goddard said.  "This resolution sends a strong message to anyone who
would despoil our heritage." 

The 2005 lawsuit charged the defendants with numerous violations of
state law and destruction of the State's natural and archeological
resources.

Johnson and his companies have agreed that the state will be paid $7
million, 3F Contracting, Inc. has agreed the state will be paid $5.05
million and Preston Well Drilling has agreed the State will be paid
$61,500. 

Violations alleged in the lawsuit brought by the Attorney General's
Office included: 

*	Bulldozing and clearing of nearly 270 acres of State Trust Lands
located in and near the Ironwood National Monument and the Los Robles
Archeological District.
*	Bulldozing and clearing an estimated 2,000 acres of private
lands in the Santa Cruz River Valley without obtaining permits required
by state law. 
*	Destroying portions of seven major Hohokam archeological sites,
circa A.D. 750-1250.
*	Destroying more than 40,000 protected native plants on State
Trust Lands, including Saguaro, Ironwood, Mesquite, Palo Verde and other
protected species.
*	Violating the state's clean water laws by failing to secure
required permits and discharging pollutants into the Little Colorado
River, the South Fork of the Little Colorado River and tributaries of
the Santa Cruz River. 

*	Negligently causing a disease epidemic that resulted in the
death of at least 21 rare Arizona desert bighorn sheep and serious
injury to numerous others.

According to the settlement, the defendants also agreed to dismiss with
prejudice the following matters:

*	A lawsuit brought by Johnson Utilities, a Johnson-owned
corporation, against the Arizona Department of Environmental Quality,
seeking injunctive relief and damages.
*	A counterclaim brought by Johnson defendants alleging defamation
by the Attorney General and his Office. 
*	A civil rights lawsuit alleging selective enforcement. 

Prior to the settlement mediation, the Special Discovery Master ruled
that the State of Arizona had established a prima facie case for
punitive damages against George Johnson and had ordered that Johnson
produce all financial statements and a net worth report requested by the
State of Arizona.  

-30-

News media interested in additional information on this or any other
topic concerning the Arizona Department of Environmental Quality should
contact the Office of Communications at (602) 771-2215 or via email at
communications@azdeq.gov.

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