(Updated to add comments from Beazer, updates stock price.)
Beazer Homes USA Inc. (BZH) has agreed to pay a $925,000 civil
penalty to resolve allegations it violated federal rules and failed
to properly manage storm-water runoff, according to the U.S.
Justice Department and Environmental Protection Agency.
The company committed Clean Water Act violations at construction
sites in 21 states and demonstrated a "pattern of violations"
including failure to obtain permits and failure to prevent or
minimize the discharge of pollutants such as silt and debris in
storm-water runoff, the agencies alleged.
In addition to the fine, Beazer agreed to implement a
companywide storm-water program to improve compliance with runoff
requirements.
Beazer said it was first contacted by the EPA about the matter
in 2003. "Since that time, the company has also established a
comprehensive stormwater management program to ensure compliance
with the Clean Water Act, similar state regulations and the terms
of the consent decree itself," it added.
The settlement comes as Beazer has suffered along with its
industry, reporting last month its fiscal fourth-quarter profit
dropped 21% following the spring expiration of the federal
government's first-time homebuyer tax credit. Revenue and backlog
also declined.
The agencies have reached consent decrees for such violations
with nine residential construction companies in the last several
years, resulting in $6.3 million in penalties. Without proper
controls, pollutant-laden runoff from construction sites can flow
into waterways, killing fish and wildlife and affecting
drinking-water quality.
Seven states joined in the Beazer settlement and will receive a
portion of the penalty.
Shares of Beazer closed at $4.67.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com