U.S. Environmental Protection Agency Region 5 has reached an agreement with CMS Energy to take immediate steps to control releases from cement kiln dust (CKD) piles, which are said to be releasing highly-alkaline leachate into Lake Michigan from the Michigan resort in Bay Harbor. Although Bay Harbor has been hailed as being a model of environmental reclamation, the estimated 2.5 million cu yd of CKD left behind by a now-scrapped Penn-Dixie Cement plant continues to effect the water supply of Little Traverse Bay.

The 1,200-acre Penn-Dixie quarry, already-closed cement mill, and terminal in Bay Harbor (near Petroskey, Mich.) was sold in 1989 by then-Holnam, which was primarily interested in operating the terminal. Holnam eventually sold the property in 1993. Beginning in 1994, the plant site was redeveloped into an upscale golf resort and residential community and, in 2003, was named in the Urban Land Institute Awards for Excellence competition. The transformation was called the largest land reclamation project in North America, and the high-pH CKD is now the Bay Harbor Golf Club. In August and September 2004, leachate from the piles was seen discharging into Lake Michigan.

The EPA agreement calls for two units of CMS Energy — CMS Land Co. and CMS Capital LLC — to take immediate steps to control rain and groudwater seepage, with EPA providing direction and oversight.

As yet, neither Holcim (US) Inc. nor any party to Penn-Dixie liabilities has been enlisted to support the cleanup effort. However, as part of these interim measures, an investigation will be conducted by EPA to design a long-term remedy for the CKD piles. The Michigan Department of Environmental Quality will negotiate an agreement with the responsible parties.

CMS Energy was a partner in Bay Harbor's creation, but utility officials sold their interest in 2002. Under the terms of sale, the utility remained responsible for potential environmental issues at the resort.

According to the Traverse City Record Eagle, recent CMS filings with the federal Securities and Exchange Commission indicated short-term cleanup measures at Bay Harbor could cost the company more than $45 million, with $1.6 million annually in ongoing remediation costs. CMS also must examine other shoreline areas of the resort to make certain there are no other discharge areas. The company must take similar remediation measures for any new areas that are discovered, according to EPA.