Gustafson's Dairy, Inc. - Page 13

               Petitioner would receive no indemnity if it destroyed                  
          animals because they had tuberculosis or certain other diseases.            
               6.   Petitioner's Environmental System                                 
               In October 1988, a dike forming a part of petitioner's                 
          animal waste control system failed, causing effluent to be                  
          discharged over a 10-acre area.                                             
               Petitioner knew by the end of March 1989 that it had                   
          significant environmental problems but did not fully appreciate             
          how severe those problems were.  The chief engineer of the Soil             
          Conservation Service (SCS) of the U.S. Department of Agriculture            
          evaluated petitioner's property and made recommendations for                
          designing petitioner's environmental system.  He told Sherwood              
          Gustafson during the design process from October 1988 to June               
          1990 that petitioner would have to reduce the size of the herd              
          because petitioner's land could not accommodate an animal waste             
          control system for all of its existing herd.                                
               Petitioner applied for a permit to build a new animal waste            
          control system (the environmental system) in 1990.  The SCS                 
          designed petitioner's new environmental system.  The Florida                
          Department of Environmental Regulation (DER) approved the plans             
          in June 1990.  The new system required petitioner to keep its               
          herd in a small high-intensity area (HIA) and to build a 90-acre            

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