SHERIDAN, Ore. – Oregon environmental regulators have issued one of their largest penalties in recent years, fining wood treatment company Stella-Jones more than $1 million for repeated pollution violations at its Sheridan facility. Yet despite years of contamination concerns, the company will be allowed to continue operating under tighter oversight.
A Long List of Violations
The Oregon Department of Environmental Quality (DEQ) cited Stella-Jones for 23 separate violations stretching back to 2022. They include:
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Releasing polluted stormwater into the South Yamhill River, a drinking water source for nearly 6,000 Sheridan residents.
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Illegally disposing of hazardous wastes at landfills not authorized to accept them.
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Failing to report and promptly clean up chemical spills.
The steepest portion of the fine—over $877,000—was tied to the company’s cost savings from sidestepping compliance. DEQ estimated Stella-Jones saved $577,000 by not cleaning its stormwater treatment system, a measure that might have reduced the spread of toxic chemicals.
“These releases had a significant adverse impact on human health or the environment,” DEQ wrote in its enforcement letter.
Why the Facility Remains Open
Despite the violations, DEQ stopped short of revoking Stella-Jones’ permit to discharge water into the river. Agency spokesperson Dylan Darling said that shutting the site would remove the state’s ability to regulate pollution.
“If we revoked the permit, DEQ would lose a tool to regulate the facility — and because it is a Superfund site, it would still be generating contamination and stormwater that needs treatment,” Darling explained.
Instead, the company must upgrade its stormwater treatment system, increase testing, and revise its operations plan.
Erin Saylor, interim enforcement manager at DEQ, said the magnitude of the fine should send a strong message:
“This enforcement not only addresses the company’s past violations, but also requires the company to conduct additional monitoring and take preventative measures.”
Stella-Jones did not respond to questions about whether it will appeal.
Years of Pollution and Delays
The penalty follows an InvestigateWest report earlier this month that revealed regulators took years to act against Stella-Jones, keeping pollution hidden from Sheridan residents despite repeated inquiries.
DEQ had been investigating violations for more than three years, even as the company discharged stormwater tainted with pentachlorophenol, a likely carcinogen. The agency cited staffing shortages and case complexity for the delay.
Meanwhile, Stella-Jones pleaded guilty in court last month to 10 counts of unlawful water pollution, paying a separate $250,000 fine.
Residents say they were left largely in the dark. In 2023, former Sheridan resident Mike Hailey asked DEQ about why his crayfish traps downstream were suddenly empty. He was told vaguely that the Environmental Protection Agency (EPA) was doing testing and that more information would come later.
A Troubled Site With a Long History
Stella-Jones has operated the Sheridan facility since 2013, but the site’s pollution problems predate its ownership.
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In 2001, the EPA designated the property a Superfund site after extensive contamination under former operator Taylor Lumber and Treating. Millions of dollars were spent removing tainted soil and groundwater.
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In 2011, both the EPA and DEQ reversed earlier bans and allowed pentachlorophenol use again, after the plant threatened closure.
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In 2022, EPA monitoring suggested that its earlier cleanup efforts were failing, prompting new investigations.
The EPA now plans to completely ban pentachlorophenol by February 2027, citing safer alternatives.
Previous Penalties and Settlements
The $1 million fine is not Stella-Jones’ first penalty:
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In July 2025, the EPA fined the company $98,000 for failing to maintain a spill prevention plan and properly train employees.
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In 2018, DEQ allowed Stella-Jones to resolve an earlier fine by funding an environmental restoration project, reducing invasive plants along a nearby creek.
Under the current penalty, the company could cover up to 80% of the fine by funding a new environmental project—pending DEQ approval.
What Comes Next
While regulators tout the enforcement as a major step toward accountability, many Sheridan residents remain skeptical. Years of hidden pollution, combined with vague responses to public inquiries, have eroded trust.
The EPA continues to investigate whether new cleanup actions are necessary, a process likely to take years. In the meantime, Stella-Jones faces additional penalties if it fails to comply with DEQ’s orders.
For Sheridan, where the South Yamhill River provides drinking water to thousands, the stakes remain high. Regulators promise closer scrutiny, but residents are left weighing a troubling question: can a company with such a record of violations be trusted to safeguard their community’s health?
