Environmental Cesspool

The fourth installment of The Back Story starts with recognition for those who lost their lives 10 years ago today. Those people were innocent victims of a terrorist act and will forever be remembered in our history books and our memories. The courage of the passengers of Flight 93, many whom were residents of California, and the firefighters in New York City who faced, without fear, overwhelming odds and the grave consequences are examples of what defines a hero. They are all hero’s!

In this installment I will be writing about an environmental cesspool which may cost California Taxpayers over 9 million dollars as reported in the LA Times. Public records reveal that former Alameda County Treasurer and Supervisor Bob Knox and companies he owns are responsible for a toxic nightmare in California.

Here is what we know. Companies owned by Bob Knox, as determined by the California Department of Toxic Substance and Control (DTSC), have been involved in the handling of a hazardous substances with very high Zinc, Lead and Cadmium content. All three base metals have health hazards. However, Lead and Cadmium have very serious health perils which include irreversible brain damage and lung tumors.

In 1996, Bob Knox apparently acquired, via a holding company by the name of CPC Holdings Inc., Chemical & Pigments located in Contra Costa County, and subsequently owned and operated the Chemical & Pigments facility. This business produced numerous products high in Zinc, Lead and Cadmium. The address given for CPC Holdings is the same Park City Utah address that Bob Knox list as his home address.

In May 1998, Chemical & Pigments filed for Chapter 11 Bankruptcy. It appears all valuable assets were sold off shortly thereafter and the facility left unattended.

In January 2002 and again in October 2002 the State of California sent their Emergency Response Unit (ERU) from the DTSC to the Chemical & Pigments facility to address serious and numerous environmental problems that had been left unresolved by its prior owner. ERU found the facility abandoned and unsecured with serious security breaches. There were storage tanks leaking hazardous substances and large amounts of unsold product containing high levels of hazardous substances on the property.

On October 18, 2002, the State of California issued an Imminent and Substantial Endangerment Determination Order. The order was issued out of serious concern for public health and welfare due to prior releases and the serious threat of future releases of hazardous substances that could endanger the health and welfare of the public. The order made clear that remediation and removal of hazardous substances and resulting contamination is required. The goal outlined by the State of California was to prevent any future danger to public health and welfare and allow for safe future use as productive industrial property.

The order made clear the respondents, as listed in the order, which included Chemical & Pigments, Robert G. Knox III(Bob Knox), and CPC Holding Inc. were to act in a manner required by the State of California.

Based on a public document, Bob Knox and CPC Holdings. Inc. have subsequently failed to pay cost associated with the remediation of the Chemical & Pigments site. In April of this year, the State of California sent a letter requesting repayment of taxpayer funds used to remediate the site. The cost to taxpayers as of April 2011 is nearing seven million dollars. To be exact, $6,774,967. The letter also indicates a lien for over a million dollars has been placed on the Chemical & Pigments property in an effort to force repayment of taxpayer funds.

It is difficult to grasp that a former California elected public servant, who even to this day professes the “importance of safeguarding the public’s limited funds” would seemingly dump on the residents of California the toxic cesspool for which he and his companies share responsibly for creating. More appalling is Bob Knox now ostensibly wants the taxpayers of California to pay for his share of this environmental mess. These do not appear to be the actions of a person safeguarding the public interest and funds of the residents of California.

Finally, keep in mind Bob’s Utah based investment-banking firm has been accepted by Bill Lockyer and the State Treasures Office as a company whom may be trusted to manage and invest California taxpayer money. It would appear strikingly ironic that the State of California is seeking the collection of nearly seven million dollars of taxpayer funds from Bob Knox and his companies, all the while potentially entrusting him to properly manage and invest additional taxpayer funds. I wonder how a majority of California Taxpayers would view that decision?

Bill Lockyer, can you please comment on this matter?