Port Townsend Paper Company faces fines and new safety regulation proposals

The Port Townsend Paper Company is facing significant regulatory scrutiny following a $734,000 fine from the Washington Department of Ecology. The penalty stems from the improper operation of an onsite wastewater treatment system, which led to increased pollution in Port Townsend Bay. Since 2021, the company has received five water quality penalties for releasing inadequately treated wastewater. Recent issues included malfunctioning aeration systems and sludge buildup in treatment lagoons, exacerbated by two spills of corrosive black liquor in April 2026.

Separately, Washington State Senator Jeff Wilson is drafting legislation to increase oversight of chemical storage at paper mills. The proposed bill follows a fatal incident at the Nippon Dynawave pulp mill in Longview, where a chemical tank imploded, killing 11 workers. A federal Chemical Safety Board report revealed that a contractor had warned the company about the tank's unsafe condition months before the disaster. The new bill would require the Department of Ecology to implement mandatory inspections, leak detection, and safety standards for above-ground chemical tanks, with violations carrying fines of up to $5,000 per day.