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Feedlot Dust
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Koch
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Pilgrims Pride
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Smith Farms
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Sustainable Livestock
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Antibiotic Resistance
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Vertical Integration
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Natural Meat
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Organic Meat
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Koch Industries is a giant commodities corporation involved in oil, gas, and chemical operations, as well as mining, grain milling, and cattle feedlots. The Koch Beef Company is the 10th largest cattle feeder in the US and the 9th largest rancher, with many of its facilities located in Texas. (1)

Koch Beef Company of Hale Center, Texas bought a cattle feedlot from Texzona Cattle Feeders in July 1996. (2) In January 1997, Koch filed for a Subchapter K permit to increase their feedlot capacity from 60,000 to 80,000 head. In response, citizens and companies of the area wrote to the TNRCC to oppose the expansion. (3)

Some businesses and farm owners expressed concerns over the health of their employees, some of whom would be housed within 300 feet of Koch's cattle pens. (4) Other neighbors cited concerns over the potential for groundwater pollution, the amount of dirt, insects, and odors added to the area contributing to health problems, a decrease in quality of life for nearby residents, and the possible devaluation of land. (5) (See main text).

On May 8, 1997, TNRCC declared that the comments by citizens did not demonstrate "technical merit" and the process of granting the permit would continue. (6) Undeterred, certain citizens wrote to TNRCC challenging the "technical merit" response to previous letters. On June 20, 1997, TNRCC repeated its "lack of technical merit" stance and authorized the Subchapter K permit the same day. (7)

In 1998 Koch purchased Purina Mills, an acquisition which included six feed-making plants and a bulk feed-blending station-all in Texas. (8) But Koch's investment soon turned sour when Purina Mills filed for bankruptcy in October 1999. (9) Other financial considerations have caused Koch to begin re-evaluating its strategy for vertical integration of its feedlot and ranching operations. (10) In March 1999, the company sold the Hale Center feedlot to Cactus Feeders, another corporate agriculture company, and the nation's (and Texas') largest cattle-feeding company. (11)

NOTES:

1 New York Times, "Koch to Sell some Cattle Assets," December 4, 1998, Section C, p. 24.

2 TNRCC, "Transfer of Texas Natural Resource Conservation Commission Permit No. 01551 From Texzona Cattle Feeders General Partnership to Koch Beef Company," July 2, 1996.

3 Letter to TNRCC from Danny Stroope/Mayfield Coop Gin, re: Koch Beef Company, Application to Amend Permit-by-Rule No. 01551, February 24, 1997; Letter to TNRCC from Lowell Ray, re: Koch Beef Co. Application for Enlargement of Feedyard, March 6, 1997; Letter to TNRCC from Mayfield Farms, re: Koch Beef Cattle Company Expansion, February 20, 1997; Citizen petition to TNRCC, re: Opposition to expanding of Koch Beef Company, March 6, 1997; Letter to TNRCC from Simon and Elizabeth Jimenez, re: Request for denial of permit application for expansion of Koch Beef Company, March 10, 1997.

4 Ibid. (Letter from Danny Stroope/Mayfield Cooperative Gin, February 24, 1997)

5 Op. cit.; TNRCC, "Revised Summary of Comments and Responses for Koch Agriculture Company, dba Koch Beef Company, Subchapter K, Application No. 01551."

6 Letter to Danny Stroope from TNRCC, re: Koch Agriculture Company, dba Koch Beef Company, Application to Amend Permit-by-Rule No. 01551, May 8, 1997.

7 Letter to Simon and Elizabeth Jimenez from TNRCC, re: Koch Agriculture Company/Permit No. 01551, June 20, 1997; Letter to John L. Ray from TNRCC, re: Koch Agriculture Company/Permit No. 01551, June 20, 1997; TNRCC, "Air and Water Quality Permit-by-Rule to Operate a Concentrated Animal Feeding Operation," for Koch Agriculture Company, Permit No. 01551, June 20, 1997.

8 Wren, Worth Jr., "Purina Mills sold for third time in 12 years," Fort Worth Star-Telegram, March 18, 1998 (LEXIS-NEXIS internet news service).

9 The Times-Picayune, "Purina Mills Files for Bankruptcy; Top Animal Feed Maker Misses Loan Payment," October 29, 1999, p. 3C (LEXIS-NEXIS internet news service).

10 New York Times, "Koch to Sell some Cattle Assets," December 4, 1998, Section C, p. 24.

11 Associated Press State and Local Wire, "Koch sells Kansas, Texas feedlots," March 4, 1999 (LEXIS-NEXIS internet news service).