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The Progress Home >> Wednesday, May 27, 2009 - County officials note ... Ethanol research company faces legal troubles

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County officials note ... Ethanol research company faces legal troubles
Wednesday, May 27, 2009
By Jeff Corcino Staff Writer
Legal issues regarding Swan Biomass Inc. ethanol research facility and PA Waste LLC's appeal of its landfill application were the center of discussion at yesterday's meeting of the Clearfield County Commission- ers.

Swan Biomass Inc., an Illinois-based company that is supposed to be developing a cellulosic ethanol research center in Lawrence Township, has had several court judgments against it and owes creditors at least $428,990, according to court documents.

The company is supposed to be setting up a research facility in Clearfield to improve the process of converting hardwood feedstock into ethanol and was to partner with The Pennsyl- vania State University and Axion Analytical Laboratories in this goal.

Swan Biomass Inc. was allocated a $2 million Redevelopm- ent Assistance Capital Program grant from the state Department of Community and Economic Development, according to previous articles in The Progress. But according to Clearfield County Commissioner Joan Robinson McMillen, the company never received the grant funds because it failed to fulfill the requirements of the grant.

It also received a $580,000 grant from the U.S. Department of Agriculture for biofuels research.

Questions regarding the state grants were directed to Rob Swales, executive director of the Clearfield County Economic Development Corp., the administrator of the RCAP grant, but Mr. Swales failed to return The Progress' call before press time.

The Progress also could not obtain the company's phone number in either Illinois or locally or its e-mail address to contact the company directly. A Web site for the company also could not be located.

According to Zachary Lawhead, code enforcement officer for Lawrence Township, the company's equipment is still in its building but as far as he knows, no one has been working there for quite some time.

Initially, six full-time employees were supposed to be at the facility and eventually 33 employees were envisioned for the site, according to a press release from the state announcing the grant award dated Nov. 16, 2007.

The Swan Biomass facility is located along state Route 879 near the Interstate 80 interchange.

Clearfield County received a notice of the judgments against Swan along with written interrogatories with writs of attainder from two creditors informing the county to freeze all of Swan Biomass' assets the county may have in its possession and to inform them of what the assets are, county Solicitor Kim Kesner said at yesterday's commissioners meeting.

However, the county is not in possession of any Swan Biomass assets and the commissioners voted to authorize Mr. Kesner to inform the creditors of this.

The two creditors that sent notices to the county were Concrete Restoration Services Inc. for $128,067 and Nicholas M. Chorak for $24,980. Documents at the prothonotary's office also show that on April 22, Judge Fredric J. Ammerman ruled against Swan Biomass and ordered it to pay Overdorf Mechanicals Inc. $275,943.

Mr. Kesner also gave an update on PA Waste LLC's appeal of the state Department of Environmental Protection's rejection of its application to place a landfill in Boggs Township. The appeal is currently in the discovery phase.

According to Mr. Kesner, the company has issued a formal notice to appear for depositions to all three county commissioners and will be issuing subpoenas to former County Commissioners Michael Lytle and Rex Read and James Leitzinger, president of Clearfield Borough Council, for them to appear for depositions.

The depositions have not yet been scheduled, Mr. Kesner said.

Once the discovery phase has been completed PA Waste LLC's appeal will be heard before the state Environmental Hearing Board.

The hearing date has not yet been set, Mr. Kesner said.

PA Waste LLC had submitted an application to the DEP to construct the Camp Hope Landfill, a double-lined municipal waste landfill on 845 acres in Boggs Township, but it was rejected last year by DEP because the company failed to provide all the necessary information required for the application.

In other business:

  • despite the low turnout, approximately 19 percent, the commissioners said last week's primary election went very smoothly.

The county didn't have any problems with its electronic voting machines during this election, but there were a large number of write in votes during the last election so it is taking more time to count them all, said Lisa McFadden, chief clerk.

  • the commissioners voted to approve an agreement between the county and Campbell, Durant, Beatty, Polumbo & Miller to provide legal services to the county.

The firm will provide ongoing legal services to the county for personnel issues, according to Mrs. McMillen.

  • the commissioners approved the following Liquid Fuels allocations: Troutville Borough, $1,000; Westover Borough, $1,000; Gulich Township, $1,297; Lawrence Township, $8,721; Bigler Township, $1,629; and Union Township, $2,250.

 


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