A $100,000 civil penalty was ordered by Judge Prokes, but was suspended contingent upon the sale barn’s compliance with the permanent injunction issued by the judge, the Missouri Clean Water Law, and a Missouri State Operating Permit issued by the Missouri Department of Natural Resources. This penalty is attached to Count I of the State’s petition.

Another civil penalty of $25,000 was ordered to be paid immediately, as a certified check payable to the State of Missouri (Daviess County School Fund). This penalty is attached to Count II of the State’s petition.

Plaintiffs in the case are the State of Missouri Attorney General, the Department of Natural Resources, and the Missouri Clean Water Commission. The State was represented by Raymond E. Haight, assistant attorney general. Mike Arnold of Gallatin represented Daniel Froman and the Gallatin Livestock Auction. The case was filed in July 2008.

The judgment states that the Gallatin Livestock Auction must comply with the Missouri Clean Water Law, Chapter 644, RSMo, and its rules and regulations.

The judgment goes on to say that the Gallatin Livestock Auction is permanently ordered to maintain all runoff control basins, diversion berms, diversion terraces, storage basins and wastewater handling equipment in an operable condition and in such a way that no contaminated storm water will be discharged from the facility.

The sale barn is further ordered to submit a complete application with the appropriate fee for a Missouri State Operating Permit to the Missouri Department of Natural Resources (MDNR) within 60 days. If the MDNR requests addition information regarding the permit application, the defendant has 90 days to submit the additional requested material.

According to Froman, there were over 750 cattle at the last sale.

Statement from Attorney Mike Arnold:

Froman’s attorney, Mike Arnold, voiced overall satisfaction with the outcome in making the following statement: "While the civil penalty will add to the challenge Froman faces in paying back those who lost money in Gallatin Grain, the court could have assessed a much higher penalty than $25,000. The penalty serves more as a deterrent to others than as punishment for Froman since even DNR’s witness acknowledged that the Gallatin Livestock Auction’s environmental safeguards and practices are ‘state of the art’ and fully comply with the state law and agency regulations. According to DNR, this auction facility is the only one of approximately 350 in the state to have a water basin control system.

"DNR representatives and Froman agreed that, due to the detailed information now required by new operating applications, additional time would be needed to complete them.

"With continued compliance, this matter is finally closed. This ruling will allow the auction to continue to have a major positive impact on our area and will allow the Fromans to continue to use the profits for restitution payments to the Missouri Department of Agriculture for the Gallatin Grain losses."