The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, November 6, 1995               TAG: 9511060078
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   60 lines

SMITHFIELD FOODS MAY FACE CIVIL PENALTIES

State environmental officials said they probably will seek civil penalties against Smithfield Foods Inc. after a federal criminal investigation of the company's pollution of Virginia waterways is completed.

Frank Daniel, regional director for the Department of Environmental Quality, said it is normal procedure to wait for a criminal probe to end before pursing civil actions.

``This is standard, like in the O.J. case,'' he said, referring to the recent O.J. Simpson trial. He said the DEQ has not been ``sitting on its hands'' in the case as critics contend.

The criticism stems from the meatpacking company's donation of $125,000 to Gov. George F. Allen's political action committee, which has given thousands of dollars to Republican candidates in Tuesday's General Assembly elections.

Democrats say it was unethical for the PAC to take the money while the Allen administration is investigating Smithfield's discharges of tainted water from its hog-slaughtering plants into the Pagan River.

Mark J. Rozell, a Mary Washington College political science professor, said Allen's acceptance of the money ``is not a legal conflict, but it gives the appearance of a conflict of interest.''

Daniel said the DEQ's handling of Smithfield is not determined by politics.

``In the 16 years I've been in state government, I've never had any governor try to influence any enforcement decision,'' he said.

Daniel said it is too early to say how big a fine the DEQ would seek. He said the agency's actions might hinge on what is turned up by the U.S. Justice Department probe.

Daniel said the federal investigation began several months ago after the DEQ provided evidence to Isle of Wight County's prosecutor, who turned the information over to the Justice Department.

Democrats last week also attacked the Allen administration for easing some pollution rules for Smithfield in 1994.

In a Nov. 8 agreement, Smithfield pledged to send its waste to a regional sewer system in 1996 in exchange for the DEQ's delaying application of new, stricter waste water limits for ammonia, cyanide and pollutants that take oxygen from water.

Becky Norton Dunlop, Allen's secretary of natural resources, said the agreement was approved by a seven-member State Water Control Board that includes five Democratic appointees. DEQ staff members recommended approval.

``This is not political. . . . Smithfield has operated in good faith with the DEQ all along,'' Dunlop said.

Environmentalists also criticized the administration's actions.

``The question is, how far should the state go in giving them leeway with no fine'' and no pledge by Smithfield to cut production to reduce waste, said Patricia A. Jackson, director of the James River Association. ``That is giving them an incentive to pollute.''

KEYWORDS: CAMPAIGN FINANCE by CNB