..•


                                HAGEN, DYE, HIRSCHY & DILORENZO,                       P.C.
                                                    AITORNEYSATLAW

                                                       NlNSfEENTH     FLOOR
                                                      HF.NJ. FlI.ANKI.IN PLAZA
                                                    ONE: S.W. COLUMBIA STRF.lrr
                                                  I'ORrLAND, ORro<:>N Sl72J~2037
                                                            (50J) 222-18U
                                                         FAX: ($03) 274·7979

  JOHN A. DiLDRENZO. Jll
  AoImia.cd in Oreion.,d DisIrict ofCoiwnbia                                                    IN R£,.':' "PLl>A$S lUU'BR
  E-Mail Addr"lOljdiIor1!D"l~<>OIll                                                                           TOm..I;NO.!


                                                    ~ov~erl07           1997

                                                                                              via Fax - 229-6945
                                                                                                 and regular mail
 Mr. Les Carlough
 Oregon Department             of Environmental    Quality
 Enforcement         Section
 2020 S. W. Fourth Avenue. Suite 400
 Portland, Oregon 97201~987

                      Re:         Settlement Offer ill the Matter of Lehman Development
                                  Corporation
                                 DEQ Nos. WQMW-ER-97-032                  J WQMW-ER-97.073

 Dear Les:

               As you know. the Umatilla County District Attorney initiated. criminal proceedings
in August of 1997 against Patrick Lucas, chargingMr, Lucas with unlawful water pollution in the first
degree. A pretrial conference is being held today on that case, Oregon v. Lucas, CF91-0S63.

                 On September 23, 1997, I infonned you that Mr. Lucas was confronted by the police
concerning an indictment in the case which was never served on him. At that time. the police phoned
the court and, after their conversation, declined to take Mr. Lucas into custody but. rather. provided
him a new court date in which to respond to the indictment.

              Following that confrontation, I telephoned you and asked whether the Department of
Environmental Quality had anything to do with this criminal prosecution. I asked you this because.
rhe indictment was dated August 7, 1997. and indicated that Joni Hammond, of'your office, testified.
During our September 23. 1991. phone conference, you told me that the Department of
Environmental Quality did not initiate the prosecution and that Joni Hammond was merely called as
a witness to testify.
HAG:EN, DYE,   HmsCHY & DILoRENZO, P.C.
                                           AITORNEYSAT      LAW



   Mr. Les Carlough
   November     10, 1997
   Page 2


                   As you also recall, in August of this year Mr. Lucas and I met 'With you, Mr. Kollias,
  and Ms. Hammond at your office. AI Murrey of your Pendleton office participated via phone. The
  purpose of that meeting was to negotiate a settlement of the administrative actions whichDEQ had
  commenced related to the MAC. At no time during that discussion did Ms. Hammond notify us that
  a grand jury investigation was proceeding or that she had testified. During our conversation on the
  27th of September. I asked you why the DEQ did not, in good faith, make us aware of
  Ms. Hammond's testimony prior to reaching an agreement.             You had no response.     You did,
  however. once again assure me that the criminal proceeding was not being driven by the Department
  of Environmental Quality.

                  I am enclosing a copy of a fax I have received from Mr. Steven Thomas. Mr. Lucas' .
 attorney in Pendleton. Mr. Thomas states that "The D.A, Matt Galli, in response to my suggestion
                                      .
 that he dismiss this matter because he really did not have a case beyond a reasonable doubt, told me
                                                                                          .
 that he would need to speak. to the officer involved, Trooper Williams, and Joni Hammon j ofDEQ.
 He further told me that' Joni Hammond really wants this guy (Lucas) to go to jail.'"

                 I am also enclosing a copy of a memorandum between various state troopers dated
 January 6. 1997. As you know, in December of 1Sf96. we had entered into a Mutual Agreement and
 Order with the Department of Environmental Q.JaJity which provided at paragraph &i:'{4) that my
 client would have until January 31. 1997 to subm'; to the Department for review and aj.proval final
 design plans and specifications for modifications of the facilities. Notwithstanding   the Mutual
 Agreement and Order and my client's performance thereunder, the internal memorandum reflects that
 Ms. Hammond was actively seeking a criminal prosecution against Mr. Lucas.

                 Les, these documents make clear to me that the Department has not been .:ealing with
 us in good faith. In fact, the documents make clear that Ms. Hammond has been no less than
 deceitful as she has, .at every step, attempted to pursue this matter against Mr. Lucas knowing we
 were in the midst of good faith negotiations with you,

              I respect you as a public servant and as an individual and choose to believe that you
had no knowledge of Ms. Hammond's activities. Regardless, I am not going to let this issue rest.




H;WP~AD()537LMA.1..."R   3798-006
HAGEN~ DYE, HIRSCHY & DILoRENZO,                       P.C.
                                             ATI'ORNEYS AT LAw



  . Mr. Les Carlough
   November 10, 1997
   Page 3

  I believe it is inappropriate that agencies of OUI" state government deal with the regulated community
  in this way. r demand an explanation immediately. If I do not receive a satisfactory explanation. I
  will pursue the matter until there is a satisfactory resolution. This conduct on behalf of at least one
  of your staff transcends any issues which the Department may have with Lehman Development Co.
  Rather, it goes to the core of defining the relationship between regulatory agencies and citizens.

                     Please do not delay in fashioning your response.,


                                                        Very truly yours,




                                                       John Dil.orenzo,     Jr.
 JADJla
 Enclosures
 cc:     J. Patrick Lucas (via regular mail)
         Steven Thomas (via fax and regular mail)




H:Wi'6JAD'DS37LMALTR    3198-006

Lehman Hot Springs DEQ

  • 1.
    ..• HAGEN, DYE, HIRSCHY & DILORENZO, P.C. AITORNEYSATLAW NlNSfEENTH FLOOR HF.NJ. FlI.ANKI.IN PLAZA ONE: S.W. COLUMBIA STRF.lrr I'ORrLAND, ORro<:>N Sl72J~2037 (50J) 222-18U FAX: ($03) 274·7979 JOHN A. DiLDRENZO. Jll AoImia.cd in Oreion.,d DisIrict ofCoiwnbia IN R£,.':' "PLl>A$S lUU'BR E-Mail Addr"lOljdiIor1!D"l~<>OIll TOm..I;NO.! ~ov~erl07 1997 via Fax - 229-6945 and regular mail Mr. Les Carlough Oregon Department of Environmental Quality Enforcement Section 2020 S. W. Fourth Avenue. Suite 400 Portland, Oregon 97201~987 Re: Settlement Offer ill the Matter of Lehman Development Corporation DEQ Nos. WQMW-ER-97-032 J WQMW-ER-97.073 Dear Les: As you know. the Umatilla County District Attorney initiated. criminal proceedings in August of 1997 against Patrick Lucas, chargingMr, Lucas with unlawful water pollution in the first degree. A pretrial conference is being held today on that case, Oregon v. Lucas, CF91-0S63. On September 23, 1997, I infonned you that Mr. Lucas was confronted by the police concerning an indictment in the case which was never served on him. At that time. the police phoned the court and, after their conversation, declined to take Mr. Lucas into custody but. rather. provided him a new court date in which to respond to the indictment. Following that confrontation, I telephoned you and asked whether the Department of Environmental Quality had anything to do with this criminal prosecution. I asked you this because. rhe indictment was dated August 7, 1997. and indicated that Joni Hammond, of'your office, testified. During our September 23. 1991. phone conference, you told me that the Department of Environmental Quality did not initiate the prosecution and that Joni Hammond was merely called as a witness to testify.
  • 2.
    HAG:EN, DYE, HmsCHY & DILoRENZO, P.C. AITORNEYSAT LAW Mr. Les Carlough November 10, 1997 Page 2 As you also recall, in August of this year Mr. Lucas and I met 'With you, Mr. Kollias, and Ms. Hammond at your office. AI Murrey of your Pendleton office participated via phone. The purpose of that meeting was to negotiate a settlement of the administrative actions whichDEQ had commenced related to the MAC. At no time during that discussion did Ms. Hammond notify us that a grand jury investigation was proceeding or that she had testified. During our conversation on the 27th of September. I asked you why the DEQ did not, in good faith, make us aware of Ms. Hammond's testimony prior to reaching an agreement. You had no response. You did, however. once again assure me that the criminal proceeding was not being driven by the Department of Environmental Quality. I am enclosing a copy of a fax I have received from Mr. Steven Thomas. Mr. Lucas' . attorney in Pendleton. Mr. Thomas states that "The D.A, Matt Galli, in response to my suggestion . that he dismiss this matter because he really did not have a case beyond a reasonable doubt, told me . that he would need to speak. to the officer involved, Trooper Williams, and Joni Hammon j ofDEQ. He further told me that' Joni Hammond really wants this guy (Lucas) to go to jail.'" I am also enclosing a copy of a memorandum between various state troopers dated January 6. 1997. As you know, in December of 1Sf96. we had entered into a Mutual Agreement and Order with the Department of Environmental Q.JaJity which provided at paragraph &i:'{4) that my client would have until January 31. 1997 to subm'; to the Department for review and aj.proval final design plans and specifications for modifications of the facilities. Notwithstanding the Mutual Agreement and Order and my client's performance thereunder, the internal memorandum reflects that Ms. Hammond was actively seeking a criminal prosecution against Mr. Lucas. Les, these documents make clear to me that the Department has not been .:ealing with us in good faith. In fact, the documents make clear that Ms. Hammond has been no less than deceitful as she has, .at every step, attempted to pursue this matter against Mr. Lucas knowing we were in the midst of good faith negotiations with you, I respect you as a public servant and as an individual and choose to believe that you had no knowledge of Ms. Hammond's activities. Regardless, I am not going to let this issue rest. H;WP~AD()537LMA.1..."R 3798-006
  • 3.
    HAGEN~ DYE, HIRSCHY& DILoRENZO, P.C. ATI'ORNEYS AT LAw . Mr. Les Carlough November 10, 1997 Page 3 I believe it is inappropriate that agencies of OUI" state government deal with the regulated community in this way. r demand an explanation immediately. If I do not receive a satisfactory explanation. I will pursue the matter until there is a satisfactory resolution. This conduct on behalf of at least one of your staff transcends any issues which the Department may have with Lehman Development Co. Rather, it goes to the core of defining the relationship between regulatory agencies and citizens. Please do not delay in fashioning your response., Very truly yours, John Dil.orenzo, Jr. JADJla Enclosures cc: J. Patrick Lucas (via regular mail) Steven Thomas (via fax and regular mail) H:Wi'6JAD'DS37LMALTR 3198-006