..•

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

NlNSfEENTH FLOORHF.NJ. FlI.ANKI.IN PLAZA

ONE: S.W. COLUMBIA STRF.lrrI'ORrLAND, ORro<:>N Sl72J~2037

(50J) 222-18UFAX: ($03) 274·7979

JOHN A. DiLDRENZO. JllAoImia.cd in Oreion.,d DisIrict ofCoiwnbiaE-Mail Addr"lOljdiIor1!D"l~<>OIll

IN R£,.':' "PLl>A$S lUU'BRTOm..I;NO.!

~ov~erl07 1997

via Fax - 229-6945and regular mail

Mr. Les CarloughOregon Department of Environmental QualityEnforcement Section2020 S.W. Fourth Avenue. Suite 400Portland, Oregon 97201~987

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

Dear Les:

As you know. the Umatilla County District Attorney initiated. criminal proceedingsin August of 1997 against Patrick Lucas, chargingMr, Lucas with unlawful water pollution in the firstdegree. 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 policeconcerning an indictment in the case whichwas never served on him. At that time. the police phonedthe court and, after their conversation, declined to take Mr. Lucas into custody but. rather. providedhim a new court date in which to respond to the indictment.

Following that confrontation, I telephoned you and asked whether the Department ofEnvironmental 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 ofEnvironmental Quality did not initiate the prosecution and that Joni Hammond was merely called asa witness to testify.

HAG:EN, DYE, HmsCHY & DILoRENZO, P.C.AITORNEYSAT LAW

Mr. Les CarloughNovember 10, 1997Page 2

As you also recall, in August of this year Mr. Lucas and I met 'Withyou, Mr. Kollias,and Ms. Hammond at your office. AI Murrey of your Pendleton office participated via phone. Thepurpose of that meeting was to negotiate a settlement of the administrative actions whichDEQ hadcommenced related to the MAC. At no time during that discussion did Ms. Hammond notify us thata grand jury investigation was proceeding or that she had testified. During our conversation on the27th of September. I asked you why the DEQ did not, in good faith, make us aware ofMs. 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 Departmentof 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 suggestionthat 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 datedJanuary 6. 1997. As you know, in December of 1Sf96. we had entered into a Mutual Agreement andOrder with the Department of Environmental Q.JaJity which provided at paragraph &i:'{4) that myclient would have until January 31. 1997 to subm'; to the Department for review and aj.proval finaldesign plans and specifications for modifications of the facilities. Notwithstanding the MutualAgreement and Order and my client's performance thereunder, the internal memorandum reflects thatMs. Hammond was actively seeking a criminal prosecution against Mr. Lucas.

Les, these documents make clear to me that the Department has not been .:ealing withus in good faith. In fact, the documents make clear that Ms. Hammond has been no less thandeceitful as she has, .at every step, attempted to pursue this matter against Mr. Lucas knowing wewere 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 youhad 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 CarloughNovember 10, 1997Page 3

I believe it is inappropriate that agencies of OUI" state government deal with the regulated communityin this way. r demand an explanation immediately. If I do not receive a satisfactory explanation. Iwill pursue the matter until there is a satisfactory resolution. This conduct on behalf of at least oneof 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.JADJlaEnclosurescc: J. Patrick Lucas (via regular mail)

Steven Thomas (via fax and regular mail)

H:\Wi'6\JAD'DS37LMALTR 3198-006