The media reported Northern Metals Recycling (NMR) had admitted submitting fraudulent emission records at their Minneapolis facility to the  Minnesota Pollution Control Agency (MPCA).

A whistle blower within the walls of NMR raised allegations that the scrap metal company falsified records to evade limits on toxic emissions at its North Minneapolis metal shredder.

As of Monday, the MPCA and NMR had reached an settlement agreement and NMR permanently shut down its Minneapolis shredder operations by 6 pm. Sept. 23.

How It Got Here

Equipped with hand-written notes and numbers, NMR employee William Hodgeman aided  the state to build a case that NMR was not only breaking the scope of its permit, but it had committed “blatant” violations of state law,” according to court filings made in late August by state Assistant Attorney General Christina Brown on behalf of the MPCA.

Within a week of the charges, NMR filed court documents with its own allegation (based on the work of a private investigator) that the MPCA had manipulated and bullied Hodgeman into providing statements he “did not fully read or understand.” 

The MPCA fired back, denying any wrongdoing and defended its findings. 

District Court Judge John Guthmann ordered Hodgeman and a host of others to appear at a hearing on Monday to sort out the issue and that’s where the MPCA and NMR reached their settlement.

Ongoing Feud

The feud between the MPCA and NMR is not breaking news as the two organizations have battled since 2013, when the MPCA began monitoring air quality at the plant as part of its process for re-issuing air quality permits.

The MPCA settled with the shredding company on another issue in 2017, ending in a $2.5 million fine.

Hodgeman apparently reached out to the MPCA in July and in due course sent them photos of some notes he was scribing of the control equipment. He claims he was instructed by management at the facility not to write down pollution equipment readings outside a certain limit, which he suspected indicated higher levels of emissions.

Subsequently, NMR attorney Joseph Maternowski accused an “embattled” MPCA of breaking the agreement to negotiate in good faith by secretly working to “dig up dirt that could support an alleged permit violation by Northern Metals where none existed.” 

Strong-Armed?

Hodgeman’s supervisor told the court he never instructed Hodgeman to report false numbers. Maternowski said the equipment Hodgeman was reading is just one component of an emissions control system and is “subject to fluctuation and self-correction.”

Northern Metals’ law firm also hired a private investigator who spoke at length to Hodgeman. In a transcript of the interview, Hodgeman said he felt caught in the middle of something he should not have been and was pressured to sign a court statement on a 15-minute work break near the Northern Metals facility. 

Hodgeman told investigator Lisa Ditlefsen he read through the affidavit in “less than five minutes,” and worried he was being threatened with a subpoena if he didn’t sign it. He also told the investigator he was prompted to reach out to the MPCA by a former Northern Metals employee who didn’t like the company. 

“I shouldn’t have signed something I didn’t fully understand or read all the way either,” Hodgeman said, according to the transcript. 

Ditlefsen said in a later conversation that Hodgeman told her he had not been ordered to falsify records. Hodgeman also told Ditlefsen he was hoping to move with the company to its new Becker facility, but he, nor any other employees, had been promised a job yet. 

Northern Metals’ Maternowski concluded: “Hodgeman’s statements were completely drafted by MPCA, are entirely suspect, and are contradictory and inaccurate.”

So why agree to a settlement?

NMR reportedly did not want to have the charges dragged through a lengthy court process and costly attorney fees. The settlement was for $200,000.

“This agreement finally puts to rest the challenges Northern Metals faced at its Minneapolis site,” said Rep. Shane Mekeland. “The company’s new, state-of-the-art facility in Becker will set a new global standard for recycling when it soon opens. While operations of this kind typically cost around $20 million to construct, Northern Metals has invested nearly triple that amount to create a one-of-a-kind recycling facility in Becker.” 

Mekeland says the City of Becker (and the state)have received every assurance the new technologies and redundant measures being put into practice at the new facility will protect the area’s water, air quality and the environment in general. 

“This will allow Northern Metals to be a successful company and valuable asset to our area.”

“Northern Metals is pleased to cooperatively resolve this matter with the MPCA,” said Scott Helberg, chief operating officer of Northern Metals. “Northern Metals is committed to innovation and excellence. We look forward to starting operations at our state-of-the-art Becker facility, which we believe will be set the benchmark for sustainability and environmental protection for the recycling industry in Minnesota and the nation.” 

Moving Forward

NMR is about 90% done with construction at their 242,000-square-foot industrial building in Becker. The facility will be the first and only shredder in the world operating completely indoors. It will process everything from industrial metals to old cars. When the facility is up and running, it will employ about 85 people. 

The City of Becker is planning a series of infrastructure improvements to serve the Northern Metals site and the industrial park. That includes about 4,900 feet of street improvements, 3,300 feet of sewer, 4,600 feet of water and 3,800 feet of storm water.

“The City of Becker did a great deal of research and due diligence on this project,” said Becker Mayor Tracy Bertram.  “From early on we were engaged and partnered with the MPCA and Northern Metal Recycling to ensure we understood the industry and safeguarding our community.”  

Bertram says her and the city’s decisions have been based upon facts and not media reports.  

“City of Becker leaders have worked with the Minnesota Pollution Control Agency, engineers, and the company to develop a comprehensive pollution control plan that is state of the art and no other recycling facility in the country uses.”

City Administrator Greg Pruszinske has devoted hours in developing the industrial park in Becker and bringing new jobs to the region.

“We support capital investment in Becker and this project leverages many of the assets we have at our disposal including highway connections, mainline rail transportation and large scale power,” he said. 

“This large scale recycling business brings cutting edge technology to the industry and will set a new standard in the industry.”