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Michigan distillery in jeopardy over waste treatment concern


THREE OAKS, Mich. — A whiskey-making restaurant in southwestern Michigan could have its distillery shut down because of wastewater too strong for the local sewage plant to treat effectively.

A cease-and-desist order has been issued by the village of Three Oaks against Journeyman Distillery, the largest employer in the small farming and tourism community 75 miles east of Chicago. The hope is that both sides will agree to a solution before the mashing and fermenting of grain has to stop.

Owner Bill Welter said he would continue with the restaurant, catering and events center portions of the business if forced to close the distillery. He expects business would suffer, though, because seating inside a working distillery is a big part of what brings customers in.

“It’s more than just a restaurant. It’s an experience,” he said.

Welter said the wastewater from the distillery contains yeast, enzymes and just a slight amount of alcohol. According to Village Manager Mike Greene, the byproducts from making whiskey are reducing oxygen levels in wastewater at the plant’s three outdoor treatment lagoons.

Many of the bacteria-eating microorganisms used in the cleansing process are dying, as a result. Greene said the outcome is bacteria levels in treated water released into Deer Creek exceeding what’s acceptable under the plant’s operating permit, issued by the Michigan Department of Environmental Quality (MDEQ).

If violations are allowed to continue, he said the fear is that the village will eventually be fined. Currently the discharges are not posing a health risk, but wind up in the Galien River then Lake Michigan, less than 10 miles to the west.

The village wants Welter to either have his oxygen-killing wastewater pretreated so it can be processed effectively when it enters the municipal system, or trucked elsewhere to a treatment plant capable of properly handling the effluent. Welter, though, said the cost of a biodigester at his distillery would be about $1 million.

He feels the village should upgrade the plant not just to meet his wastewater needs but to help attract more new businesses to a community originally built on farming and manufacturing. Agriculture in the village of about 1,600 residents is still a major part of what’s become more of a tourist-driven economy, with factories over the years disappearing from the landscape.

“The town is having success, and they just need to invest in the infrastructure to help sustain that growth and continue it,” Welter said.

Journeyman Distillery, now with more than 100 employees, opened in 2010 inside the old Featherbone factory, which once made buggy whips and corsets starting in 1883. The distillery occupies about 40,000 square feet of the building it shares with the Acorn Theatre, a popular regional destination for live musical entertainment.

Welter said no mention was ever made about what would be required in his wastewater then or when he went back to the village in 2015, seeking approval to increase production at the distillery and add the restaurant and events center for hosting events such as weddings.

“It wasn’t until nine months ago that we received notice,” he said.

Greene said a grain separator at the request of MDEQ was installed at the business about three years ago to remove mash from its wastewater. Previously, he said the mash was included in the waste stream deposited into the municipal system.

Mash can clog pipes and add to the normal sediment buildup in the treatment lagoons, which require occasional dredging. Welter said the mash from his separator is taken to nearby Kaminski Farms for use as feed. He also purchases from the farm meat used in hamburgers served in his restaurant.

Mostly premium rye whiskey and bourbon are made at the distillery, along with some gin, vodka and other hard-liquor products. The alcohol is sold not just to his customers, but also bottled and shipped to liquor stores along with restaurants and bars in 16 states and seven other countries.

6/13/2018