Brief: Grand jury probing riverboat dredging

Wednesday, Feb. 17, 1999 | 11:24 a.m.

Station said it received a subpoena from the U.S. Environmental Protection Agency requesting documents be furnished to a grand jury sitting in U.S. District Court for the Eastern District of Missouri.

The documents relate to dredging at its casino complex. Dredging has been necessary because sand and silt have built up under the gaming barges, causing safety hazards as the barges touched the river bottom in low water.

"The company believes that the EPA is investigating allegations that the company or its contractors dredged and disposed of silt and debris from under the facility either without proper permits or without complying with such permits," Station said in a statement Tuesday.

Glenn Christenson, Station's chief financial officer, said the company had dredging permits, and is conducting an internal investigation to determine exactly what happened. The company is no longer dredging, as water levels on the Missouri have risen and are not expected to fall for the rest of the year.

Christenson said Station is working with Missouri gaming regulators to determine how the company can legally operate its casino at low water times. Missouri gaming laws require casinos to float.

When asked if a ban on dredging would force the casino to close, Christenson said it is difficult to tell at this point. The company will work with regulators to find a way to operate within all gaming and regulatory laws, he said.

"I don't anticipate not being able to dredge," said Christenson, noting that dredging is a common practice on the Missouri.

Station said it will cooperate fully with the EPA investigation and that while any potential fines or penalties could be significant, they would not have a material adverse effect on the company.

Station went to court last month to keep the St. Charles casino open after Missouri gaming regulators ordered it closed because of the silt problem and low water levels. Since then, water levels have risen.