In a major environmental enforcement victory, Domtar Industries LLC has agreed to clean up a composting site and pay $1.15 million to settle allegations it illegally dumped PFAS-contaminated paper sludge, Michigan Attorney General Dana Nessel announced Wednesday.

The agreement, filed as a consent decree in St. Clair County Circuit Court, requires the paper product manufacturer to remove hazardous sludge from the Port Huron site and cover future remediation costs tied to the contamination. The case stems from allegations that Domtar knowingly misrepresented the safety of its waste, securing composting permissions under false pretenses.

PFAS and Paper: A Toxic Combination

PFAS—short for per- and polyfluoroalkyl substances—are synthetic chemicals found in a wide range of industrial applications, including grease-resistant paper products. Nicknamed "forever chemicals" due to their persistence in the environment and the human body, PFAS have been linked to cancer, hormonal disruptions, and other serious health issues.

According to the lawsuit filed in December 2022, Domtar falsely certified its paper sludge as PFAS-free when applying for composting approval. In reality, the sludge allegedly contained PFAS from the company’s grease-resistant paper manufacturing operations, making its way into a Port Huron composting site.

"This settlement is another step in the right direction," said AG Nessel. "Our PFAS litigation project is aimed at bringing relief to communities exposed to this contamination—and holding polluters accountable."

Cleanup, Costs, and Accountability

Under the terms of the settlement, Domtar must investigate PFAS contamination in soil and sediment at the site and remove any paper sludge already present. Additionally, the company will pay:

• $850,000 in legal fees to the Callow & Utter Law Group, who litigated the case as special assistant attorneys general

• $300,000 to cover future state response costs, should additional hazardous substances be found

A Domtar spokesperson declined to comment on the settlement.

A Broader Crackdown on PFAS Contamination

This marks the second PFAS lawsuit settlement secured by Nessel. In 2023, Asahi Kasei Plastics North America agreed to investigate and remediate PFAS contamination at a former site in Brighton, MI.

Michigan’s sweeping PFAS litigation effort has also ensnared entities beyond manufacturing, including Gerald R. Ford International Airport in Grand Rapids for its use of PFAS-laced firefighting foam, which has reportedly leached into surrounding environments.

The state was represented by Polly A. Synk and Danielle Allison-Yokom from the Michigan Attorney General’s Environment, Natural Resources and Agriculture Division, alongside Joseph M. Callow Jr. and Gregory M. Utter of Callow & Utter Law Group.

Domtar’s legal team included Matthew J. Lund and Todd C. Fracassi of Troutman Pepper Locke LLP.

As the state’s PFAS enforcement gains momentum, the Domtar case may serve as a warning shot to other industrial actors: the days of dumping and denying are numbered.