GREENSBORO, N.C. (WGHP) – A man whose pharmaceutical company had been cited by state officials for how it handled potentially dangerous materials says the company is in full compliance with state regulations and poses no threat to the public.
Michael P. Deason of Greensboro until recently operated Pharmaceutical Dimensions on West Friendly Avenue, where state regulators have said they found more than 500 containers of flammable liquids along with other dangerous pharmaceuticals and cited the company for violating regulations designed to protect the public.
NC Policy Watch first reported about issues involving the company, which worked out of a warehouse at 7353-A. West Friendly Ave., near Piedmont Triad International Airport. Deason told WGHP that the building is clear of any hazardous materials, which state officials confirmed pending further inspection.
Laura Leonard, a spokesperson for the NC Department of Environmental Quality, said in an email to WGHP that it is DEQ’s understanding from Deason that “the hazardous waste was shipped off-site on March 30, which is within the time limit set for the Immediate Action Notice of Violation (IANOV). DEQ staff will conduct a follow-up inspection visit(s) to confirm all material has had a waste determination and hazardous waste has been removed.”
A 10-page letter outlined the violations against Pharmaceutical Dimensions, such as failing to provide an inventory list and operating without a permit. There were 84 boxes of possible waste that carried no dates, and it was unclear how long they had been onsite, the letter said.
These items included flammable ethanol, aerosols, potassium nitrate, sodium nitrate and silver nitrate.
In the letter, a copy of which was obtained by WGHP, Deason was quoted as saying that “shipping the hazardous waste pharmaceuticals offsite was a top priority as soon as funding became available”
Deason declined to do an on-camera interview on Friday, but he did say that “operations have been suspended” and that the “location came into compliance shortly after receiving a letter” from the state. He said there is nothing on site that is considered a violation.
Mike Borchers, director of water resources for the city of Greensboro, said officials weren’t aware of the company or the potential situation before Policy Watch’s report. The company had no special permits for wastewater – only typical commercial and residential discharge – he said, but he reached out to other city departments, such as the fire department and engineering, to make sure they are aware. He said those agencies would follow up as needed.
Follow-up inspections, steps
Pharmaceutical Dimensions is described as a “reverse distributor” that buys expired or damaged pharmaceutical products, including various pills, vaccines, chemotherapy drugs, flammable devices and types of residue materials, and returns those materials to the manufacturer for credit or disposes of them at a hazardous waste facility, Policy Watch reported.
Leonard said in her email that the facility is not required to have a permit to conduct reverse distribution operations. She said that Pharmaceutical Dimensions had notified DEQ about its hazardous waste but did not provide clear notification that it was operating as a reverse distributor.
“Once it was determined that waste had accumulated on-site for more than 180 days, the facility was in violation for failure to obtain a permit as a Storage facility under RCRA,” she said.
Policy Watch cited among other things a failure by the company to provide an inventory list of items it was storing and said the company could face penalties of up to $32,500 per day.
“The Division staff are working with EPA’s Emergency Response and Removal Branch to address concerns about closure of the facility and disposal of waste,” Leonard wrote in her email. “The division’s Hazardous Waste staff will conduct a follow-up inspection once the 30-day return to compliance date is reached. If any hazardous waste or suspected hazardous waste remains on-site, Division staff will contact the EPA to determine if a removal is warranted. Fees and fines will have to be determined based on the facility’s response.”
She also said that the Division of Waste Management’s Hazardous Waste Section manages pharmaceuticals once they are determined to be hazardous waste for disposal. Hazardous Waste staff contacted the DEA whose representatives informed staff that they were conducting their own audit.”
She referred questions about those findings to the DEA.
Regulatory change
Policy Watch said the company had incorporated in 2006 and had moved several times during its 15 years.
Policy Watch said that Tim McQueen, who previously managed the company’s day-to-day operations, said regulatory issues had affected the company negatively. Deason told WGHP that he would explain those later.
For many years some of these types of items were flushed down toilets and buried in landfills, but they posed threats to the environment such as seeping into water supplies. Some of the materials were toxic and some could be flammable.
In 2019, Policy Watch reported, the EPA strengthen rules controlling those items, and North Carolina adopted the federal provisions. A report by the Inspector General had criticized how out-of-date regulations were and said that “hazardous waste regulations are not keeping up with drug development.”
McQueen apparently operates Ozone Waste Solutions at that location now, and Leonard told Policy Watch that state officials were working to remove non-hazardous materials from the facility.
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