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r r • 0 ITEM: 11 SUBJECT: Musco Olive Products and the Studley Company, San Joaquin County— Consideration of: (a) Administrative Civil Liability and (b) revision of California Water Code Section 13308 Time Schedule Order No. R5-2002-0014. DISCUSSION: Musco Olive Products and the Studley Company(Discharger) operate an olive processing and canning facility near the City of Tracy. The facility generates wastewater with elevated concentrations of total dissolved solids, sodium, and chloride; this wastewater is applied to land. Due to numerous violations of WDRs Order No. 97-037, the Executive Officer issued Cleanup and Abatement (C&A) Order 5-00-717 in November 2000. As a result of failing to comply with the C&A Order, the Regional Board adopted a California Water Code Section 13308 Time Schedule Order (TSO) on 25 January 2002. The Board is now asked to consider two actions: (a) Administrative Civil Liability On 11 April 2002, the Executive Officer issued ACL Compliant No. R5-2002-0502 which proposed that the Discharger be assessed a $150,000 penalty for failure to comply with the C&A Order. The Discharger has agreed to pay the penalty, but proposes that a portion be used to complete a Supplemental Environmental Project(SEP) to restore/enhance a portion of the streambed into which wastewater has been discharged. Staff do not believe that the proposed SEP is appropriate in this instance, and are asking that the Board adopt an ACL Order requiring the Discharger to pay the entire $150,000 penalty. (b) Revision of Time Schedule Order No R5-2002-0014 The Dischareer's WDRs contain a finding that wastewater flows to land will not exceed 500,000 gallons per day(gpd). However, per the Discharger's requests in January 2002, the TSO contains a seven-day average flow limit of 600,000 gpd and a daily maximum of 750,000 gpd. These values are based on the Discharger's average flow data from 2001. The Discharger has recently requested that the TSO be revised to allow higher flows, to a seven day average of 820,000 gpd and a daily maximum of 950,000 gpd. The Discharger states that this increase is needed to maintain a viable business operation and has submitted an agronomist's report and water balance that demonstrates its crop can use this volume of water between June and September of this year. As part of the review of the request, staff inspected the site on 10 May 2002 and visually confirmed significant cropping improvements at the land application areas and improved soil moisture conditions. However, offensive odors were confirmed at the irrigation checks closest to the nearest occupied property. Staff remain concerned about loading rates of dissolved solids, nitrogen compounds, and BOD, as well as the