Oklahoma poultry companies settle 21-year litter pollution lawsuit 

The U.S. Court of Appeals for the Tenth Circuit has granted Oklahoma Attorney General Gentner Drummond’s request to stay a judgment against six poultry companies, clearing the way for a nearly $44 million settlement over poultry litter pollution in the Illinois River Watershed. 

The settlement replaces an earlier $31 million agreement involving four of the companies that a federal court rejected in April. The case will return to federal district court, where the earlier judgment against the companies is expected to be vacated so the settlement can take effect. 

Drummond announced the settlement in July, resolving a 21-year-old lawsuit filed by Oklahoma in 2005 against Tyson Foods, Cargill, George’s, Peterson Farms, Cal-Maine Foods, and Simmons Foods. The companies were found liable for pollution associated with poultry litter and elevated phosphorus levels in the Illinois River Watershed and Lake Tenkiller. 

“All parties came to the table to find a solution to protect Oklahoma’s water and to provide certainty for our poultry industry,” Drummond said in a statement. “The result is a balanced solution that protects our natural resources and supports one of Oklahoma’s most important industries.” 

Specifics of the settlement  

Under the agreement, the companies will pay approximately $41.67 million into an Environmental Relief Fund administered by the Oklahoma Conservation Commission. The money will support watershed remediation, conservation projects and litigation costs. 

The companies will pay $420,000 in penalties to the Oklahoma Department of Environmental Quality Revolving Fund and establish a $1.9 million Auditor Fund to finance independent compliance monitoring and annual reporting. 

The settlement establishes phased limits on how much poultry litter removed from poultry houses can be applied to land within the watershed. During the first two years, no more than 40% of removed litter may be land-applied within the watershed. The limit drops to 30% in years three and four and 20% in years five through seven. 

Litter exported from the watershed to meet those limits cannot be applied in other nutrient-sensitive Oklahoma watersheds. 

The poultry companies also agreed to fund or secure funding for 50% of the cost for qualifying contract growers to install vegetative and riparian filter strips along Lake Tenkiller and designated scenic rivers. 

The agreement includes protections for contract growers, prohibiting companies from dropping or refusing to renew grower contracts as retaliation for complying with the settlement requirements.  

Payments to the Environmental Relief Fund are due within 30 days after the courts vacate the prior judgment and dismiss the case. The settlement is scheduled to remain in effect for seven years, while the companies remain subject to Oklahoma’s poultry litter management laws after the settlement period. 

Lacey Vilhauer can be reached at 620-227-1871 or [email protected].