Amazon to Pay $20.5 Million Over Oregon Pollution Settlement

Amazon has reached a $20.5 million settlement to resolve a class action lawsuit in Oregon, related to groundwater contamination. This agreement represents the first time a major tech company has taken financial responsibility for damages related to public health threats, allegedly exacerbated by the construction and operation of its data centers. The lawsuit, filed by residents of eastern Oregon, alleges that Amazon's operations contributed to the pollution of the Lower Umatilla Basin, the sole source of drinking water for thousands of residents.

The agreement was revealed in a court filing by attorney Steve Berman, on behalf of the plaintiffs. The contamination, which includes high levels of nitrates, is partly attributed to the use of large amounts of water to cool the servers in Amazon's data centers. The company, which operates 13 such facilities in the area, denies the allegations but agreed to the payment to avoid litigation costs.

Amazon's data centers, which began operating in 2011, have been accused of exacerbating pre-existing pollution. The water used to cool the servers is discharged annually, contributing to the spread of nitrates in the soil and groundwater. Experts point out that the consumption of even small amounts of nitrates can be harmful to human health, causing problems in newborns and increasing the risk of cancer.

The company defends itself by arguing that the agreement was reached to avoid the costs and burden of litigation. However, the agreement implies that Amazon is the first party to reach a settlement in the case, recognizing the role its data centers may have in accelerating the pollution of the basin.

The agreement states that Amazon's $20.5 million will be distributed into two main funds, after covering attorney's fees. The first fund will be allocated to private well projects for residents who depend on water with nitrate contamination levels above state limits. The second fund will finance public water system projects for the treatment and distribution of cleaner water.

In addition, $30,000 will be allocated for one-time payments of $5,000 to the six original plaintiffs. The agreement is subject to court approval after a public hearing. The plaintiffs' attorney, Steve Berman, stated that the agreement is a first step, but that the work is not yet over, and that they will continue with the litigation against the main polluters.

Jim Doherty, a former county commissioner, expressed his disappointment with the amount of the settlement, suggesting that the real figure should have been significantly higher. Doherty spearheaded efforts to declare a public health emergency in Morrow County in 2022 due to the contamination. Kathy Mendoza, a local resident who retired early due to a health condition she believes was caused by exposure to nitrates, also expressed skepticism about the impact of the agreement.

Attorney Steve Berman, for his part, thanked Amazon for taking the first step towards solving the nitrate pollution problem, but emphasized that responsibility lies with all parties that contributed to the contamination. Berman announced that the litigation will continue against other polluters, including the Port of Morrow, Lamb Weston and Threemile Canyon Farms.

This agreement represents a significant milestone, as it is the first time a major technology company has assumed financial responsibility for environmental damages related to its operations. Amazon, which operates 13 data centers in the area, is part of a lawsuit involving multiple farms and dairy operators, as well as a local utility and the Port of Morrow.

The agreement could set a precedent for future lawsuits against tech companies for the environmental impact of their operations. The news was produced in collaboration with the Food & Environment Reporting Network, an independent non-profit news organization.