Earlier this week, the State Water Resources Control Board (SWRCB) issued a cease and desist order against Sugar Pine Spring Water LP, who is owned by G. Scott Fahey. Sugar Pine Spring Water is known as one of Starbucks’ main suppliers of the coffee chain’s Ethos bottled water.
According to the SWRCB, Sugar Pine continued to divert water from the Tuolumne River, despite a warning from the board. Because Fahey is considered a junior water rights holder, water allocation was curbed due to the severity of the California drought.
Fahey was notified of the decision in May 2014 and again in April 2015. Although he received the warnings, he continued to divert water for 170 days, a total of 22 acre-feet.
“The violations carry a maximum civil liability of $1,000 per day, plus $2,500 for each acre foot of water diverted or used in excess of the diverter’s water rights. Division of Water Rights staff is recommending a civil liability of $224,875 to settle the complaint,” the board said in a statement.
Fahey was served with a final cease and desist order. Should the company fail to comply, they could face an additional fine of $10,000 a day and/or action by the Attorney General’s office.