When Good Apples Get Spoiled

By Joseph Friedrichs, 11-22-09

HOOD RIVER—Bill Neal has no problem explaining what the state should do with David Ryan and his juice company.

“They need to come up here and shut his ass down,” Neal said. “This has been a problem for 15 years.”

Ryan, the founder and CEO of Hood River Juice Company, was charged in late October with two misdemeanor counts of water pollution. This came as no surprise to Neal and a number of other farmers, ranchers and homeowners who reside near the business. After all, Ryan is already awaiting trial for six alleged felony acts of pollution tied to 16 separate charges. In addition, Ryan, 46, faces penalties for two felony counts of supplying false information to a regulatory agent, according to documents obtained by employees of this publication.

Deputy District Attorney Kate Stebbins is representing the state of Oregon in the case. Although she declined to comment specifically about Ryan and the charges, Stebbins did say it is unique for the D.A. office to become involved in an issue such as this. Stebbins is also working with the state Department of Environmental Quality and the county health department on the case.

According to state and federal records, the Hood River Juice Company has been cited four times in the last 10 years by the DEQ for improper discharges of wastewater. Essentially what was happening was fruit pulp from discharged wastewater floated to state waters and impacted irrigation systems downstream, according to Brett Vandenheuvel, the director of Columbia Riverkeeper, a local environmental watchdog agency. A county road was also damaged as a result of poor wastewater management from the juice company.

“Environmental crimes, like any crimes,” he said, “should be prosecuted.”

Vandenheuvel said he understands the difficulty of a juice company to meet all state standards. Wastewater removal is no cheap ticket when it comes to meeting the standards, he said, and companies can actually be put at a disadvantage when they follow every rule to exact code. All the same, fruit juice is highly acidic, and when not removed of properly can have harsh impacts on the environment. Oxygen levels in the water can be lowered. PH levels tend to zip up and down. Fish, particularly salmon, are extremely sensitive to these types of changes to the ecosystem.

Ryan, who did not return numerous phone calls to this publication, is no stranger to the law. The Oregon State Police has issued at least one search warrant of his business during the past year. He’s spent time in the Northern Oregon Regional Correctional Facilities in The Dalles for alleged criminal offenses. Ryan was also arrested in December 2008 following a nearly year-long investigation by the DEQ regarding his company’s environmental practices.

In a letter dated April 28, 2008, DEQ Enforcement Officer Duane Smith outlined the finding of that investigation:

--Wastewater had contaminated storm water with nutrients and spurred growth of algal colonies that ranged from gray to greenish-gray, red and orange. An inspector observed the algae as far away as a designated wetland that drained into Ferguson Creek, a tributary of Indian Creek.

--Wastewater illegally created aesthetic conditions that were offensive to the human senses of sight, taste, smell or touch.

--( Hood River Juice Company) provided DEQ with incomplete annual status reports outlining its management of wastewater.

-- (Hood River Juice Company) failed to abide by the terms of a May 24, 2007, pre-enforcement notice. Specifically, the company did not provide accurate reports indicating the volume of daily processed sludges and solids — as well as where waste was disposed of.

-- The facility appeared to be managing and disposing of 10,214-19,070 gallons of wastewater per week. But plans submitted to DEQ stated that 3,000-5,000 gallons would be processed each week.

Warning letters have also arrived to Ryan’s desk from the U.S. Department of Health and Human Services. The owners of many local apple orchards refuse to sell their fruit to Ryan, who now must look north to orchards near Yakima to keep his business functioning, according to Neal.  When and why did the Hood River Juice Company go wrong? What happened? At the risk of writing redundant words, Ryan refused to return phone calls to this magazine.

Stebbins stated that Ryan has been cooperative with the D.A.’s office in regard to the case. According the company’s profile, the juice business first began on the Ryan family farm in 1979, with a borrowed cider press. The fresh pressed juice was packaged into bottles with hand drawn labels and sold door to door and at local farmers markets. These days large trucks ship the juice throughout the Pacific Northwest. A massive juicing facility sits off County Club Road and serves as the company’s headquarters. Nearly 70 people call the business their employer.

Aside from his legal troubles, Ryan was recently named the Ernst & Young Entrepreneur of the Year, a prestigious award given to business owners in the Pacific Northwest. However, Neal, a retired logger and contractor, said he is done buying the “nice-guy act.”

“The guy has two faces,” Neal said. “There’s the public face and the fuck you face.”

For more than a decade neighbors of the juice company have been bothered by horrific odors caused from sewage waste dumped by the business, according to Neal. To boot, irrigation pipes have been continually clogged from fruit pulp, resulting in unnecessary maintenance costs.

“My horses and mules used to drink water from the canal back here,” Neal stated. “But a mule won’t drink shit, I can tell you that.”

According to Mike Kleinsmith, the manager of the local Farmer’s Irrigation District, a pipe was installed in the irrigation canal earlier this year to bypass the Hood River Juice Company. This has led to fewer complaints about the business, although for more than a decade the complaints were frequent, he added.

A request from the state to gather and prepare scientific evidence against Ryan and his company has delayed a court hearing until Feb. 9 and 10. Official court action will not take place until later in the spring, likely in April, according to Stebbins.

“He needs to take care of his dues,” Neal said, “and we can all keep moving on.”

And although Neal said he is willing to forgive, he has no intention to forget.