Amazon Reaches $20.5 Million Settlement in Eastern Oregon Pollution Case

Amazon has finalized a settlement agreement to resolve a class action lawsuit concerning the alleged contribution of its data centers to water pollution in Eastern Oregon. This marks a significant moment, as it is the first time a major technology company is paying damages related to public health threats allegedly worsened by data center construction and operation.

The $20.5 million settlement was detailed in a filing submitted to the U.S. District Court in Pendleton by attorney Steve Berman. Mr. Berman represents six Eastern Oregon residents involved in the ongoing litigation regarding the Lower Umatilla Basin (LUBGWMA).

The Critical Water Source Under Threat

The Lower Umatilla Basin serves as the sole source of drinking water for up to 45,000 residents who depend on well water throughout Morrow County and surrounding areas. Data collected by Oregon’s Department of Environmental Quality (DEQ) since 1991 has consistently shown rising levels of nitrates in the basin.

Nitrates are a byproduct of chemical fertilizers heavily utilized by large agricultural operations and food processing plants in the region. While this pollution existed before Amazon's presence, experts contend that the data centers have intensified the issue.

Data Center Cooling and Nitrate Acceleration

Amazon’s facilities utilize water for cooling server equipment, leading to the annual discharge of tens of millions of gallons. Much of this discharged water eventually enters the groundwater system, according to the lawsuit.

This influx of water is believed to accelerate the movement of existing nitrates through the soil and into the basin. Consequently, this contributes to an overall increase in the concentration of harmful nitrates in the drinking water supply.

Scientists warn that consuming even small amounts of excess nitrates poses serious health risks. These risks include debilitating conditions for newborns and documented links to increased cancer risks.

Amazon Denies Liability While Settling

In the court filing, Amazon explicitly stated that it “denies each and every one of the allegations of wrongful conduct and damages by Plaintiffs.” This includes denying any contribution to groundwater, surface water, or drinking water contamination in the area.

The company specified that it is entering the agreement “solely to avoid the burdens and expense of litigation.” Amazon began operating its first data center in Morrow County in 2011 and now runs 13 such facilities near the basin.

Settlement Structure and Allocation of Funds

Amazon is one of several defendants in the case, alongside major agricultural entities like Lamb Weston and Threemile Canyon Farms, a local utility, and the Port of Morrow. Amazon is the first defendant to reach a settlement regarding its role in accelerating the basin’s pollution.

The settlement, pending court approval after a public comment period, will release Amazon from liability related to its cooling water discharges alleged to cause contamination in the LUBGWMA.

Dedicated Funds for Water Infrastructure Improvement

The $20.5 million settlement will be divided into two main funds for eligible residents, after attorney fees are covered. The first fund is designated for private well projects, aiming to tap into deeper, cleaner sections of the aquifer for homes exceeding state safety limits for nitrates.

The second fund will finance public water-system projects focused on treating and distributing cleaner water supplies. Additionally, $30,000 will be set aside to provide $5,000 one-time payments to the six named plaintiffs for their role in securing the agreement.

Community and Legal Reactions to the Settlement

Jim Doherty, a former county commissioner who pushed for a public health emergency declaration in 2022, expressed disappointment, stating he hoped for a settlement exceeding $100 million. He questioned whether the current amount would satisfy residents facing severe health issues due to contaminated water.

Kathy Mendoza, a local resident who retired early due to a debilitating condition she attributes to nitrate exposure, called the settlement “a drop in the bucket” given the scale of the contamination problem.

Amazon defended its position, noting that groundwater quality issues predate its data centers, which address nitrates from agriculture, septic systems, and processing plants. Amazon stated the settlement fund is intended to directly benefit the community through infrastructure improvements.

Plaintiffs’ attorney Steve Berman welcomed Amazon’s action as a “first step” but emphasized that the effort is “far from over.” Berman confirmed that litigation will continue against the remaining primary defendants, including the Port of Morrow, Lamb Weston, and Threemile Canyon Farms.