City In Oklahoma Accuses Water Company Of Fraud
By Sara Jerome,
@sarmje
Drinking water contractor Severn Trent Environmental Services is facing a lawsuit from the city of Hugo, OK.
The city alleges that Severn Trent “committed fraud, acted negligently, breached its contract, and created a public nuisance,” KGOU reported.
The Journal Record reported that the city is seeking over $225,000. Here’s what the lawsuit claims, per the report:
The company didn’t properly maintain the water treatment plant or request money for equipment upkeep. The lawsuit also alleges the company submitted inaccurate monthly reports to the state environmental regulator. Severn Trent Environmental Services’ actions were grossly negligent, heinous, reckless, willful and wanton, according to the petition.
The company’s actions are a public nuisance because it endangered Hugo residents’ health, safety and comfort, the petition stated. The company’s failure damaged the city and the Hugo Municipal Authority’s reputation with its customers and with the public, according to the document.
The state recently settled a conflict with Severn Trent, according to KXII:
After a lengthy investigation in 2015, the Oklahoma Department of Environmental Quality (DEQ) says the company failed to meet minimum chlorine standards, putting thousands at risk of drinking unsafe water. In August 2015, the water company was hit with a record $3 million fine by the Oklahoma DEQ for numerous regulation violations.
The Oklahoma DEQ announced in March that they had reached a settlement with Severn Trent, requiring them to pay $955,000 under the agreement, most of which will help assist small communities in Oklahoma, like Hugo, with expenses related to upgrades at drinking water and wastewater treatment facilities.
William Mertes, Severn Trent's senior vice president of operations and service delivery, issued a statement on the settlement in March, according to The Oklahoman.
He said he was pleased that his company and the state found "a constructive way to resolve the matter," according to the report.
"We worked with the ODEQ starting when we notified the agency of potential reporting discrepancies on water quality data and throughout our internal investigation," Mertes said, per the report. "The settlement reflects our desire to find a resolution that would support the efforts of the agency to address critical infrastructure maintenance challenges being faced by many underfunded rural water systems across Oklahoma."
Severn Trent did not immediately return a request for comment on the Hugo lawsuit.
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