REGION
Thursday, June 14, 2018
East Oregonian
Page 3A
Tillamook subsidiary files lawsuit against troubled dairy
By MATEUSZ PERKOWSKI
EO Media Group
A subsidiary of the Til-
lamook County Creamery
Association has filed a law-
suit seeking to stop accepting
milk from a troubled Board-
man dairy in bankruptcy
proceedings.
Lost Valley Farm began
supplying Columbia River
Processing, the subsidiary,
when the dairy opened last
year. It has since run into seri-
ous regulatory and financial
problems.
The company’s owner,
Greg te Velde, owes about
$67 million to Rabobank, a
major agricultural lender that
sought to foreclose on Lost
Valley Farm’s cattle herd.
A liquidation auction
of the cattle was halted in
April by te Velde’s Chapter
11 bankruptcy filing, which
protects the company from
actions by creditors while it’s
restructuring.
However, the dairy’s abil-
ity to sell milk to Columbia
River Processing has been a
major point of contention in
the bankruptcy proceedings,
with the Tillamook coopera-
tive vowing to stop accepting
deliveries at the end of May.
Tillamook CEO Patrick
Criteser argued that his com-
pany has terminated its con-
tract with Lost Valley Farm,
but te Velde maintains the
contract is valid and threat-
ened to sue.
Columbia River Process-
ing has filed an adversary
case — a complaint related
to the bankruptcy proceed-
ings — asking a bankruptcy
judge to declare that the con-
tract was terminated before
the Chapter 11 case was filed.
The company submitted a
letter terminating its contract
with te Velde in late Febru-
ary, citing the dairy’s failure
to pay debts and the appoint-
ment of a receiver to oversee
its operations.
Reputational
damage
to the Tillamook coopera-
tive and high bacteria levels
in Lost Valley Farm’s milk
have also been cited by CRP
in ending the milk-buying
agreement.
When Columbia River
Processing offered to negoti-
ate a reinstatement of the con-
tract, te Velde did not respond,
according to the complaint.
If the judge isn’t will-
ing to declare the contract
invalid or allow CRP to ter-
minate the agreement, the
complaint seeks a judgment
that would cause the dairy to
its lose bankruptcy protec-
tions for any further contract
violations.
The issue of CRP’s contin-
ued acceptance of milk is key
to Lost Valley Farm’s abil-
ity to restructure and remain
operational.
Rabobank
cited
the
impending end of milk sales
Kishpaugh to speak at Relay for Life
Had surgery to
remove brain tumor
By TAMMY MALGESINI
East Oregonian
Piper Kishpaugh, who
was diagnosed with cancer
as a 5-year-old, is the special
guest speaker for Relay for
Life of Umatilla and Morrow
Counties.
Now 31, the Pendleton
woman is excited about the
opportunity to give back. In
addition to the emotional sup-
port provided by involvement
with Relay for Life, Kish-
paugh received several schol-
arships from the American
Cancer Society.
“So many people have
done things for me,” she said.
“It’s a great honor to return
the favor.”
Event lead Carol Pres-
ton called childhood cancer
“the most heartbreaking.”
She is looking forward to
having Kishpaugh share her
story as part of the opening
ceremonies.
The relay is Saturday from
10 a.m. to 10 p.m. at Roy Raley
Park, 1205 S.W. Court Ave.,
Pendleton. Several food trucks
will be stationed at the park.
Preston wants to remind peo-
ple that even though the name
includes “Relay,” it’s a walking
event. Also, participants don’t
have to register in advance.
“You don’t have to come
spend the whole day,” Pres-
ton said. “Even a few minutes
and a few dollars will make a
difference.”
Contributed photo
Piper Kishpaugh stands with her thoroughbred Appa-
loosa, Ginger, who died of cancer in 2015. Kishpaugh,
who was diagnosed with cancer as a child, is the spe-
cial speaker at the Relay for Life on Saturday.
Initially
experiencing
headaches,
Kishpaugh’s
family thought she had
migraines. That progressed
to episodes of passing out. In
October 1992, an emergency
CAT scan due to symptoms
of paralysis revealed a tumor.
A large cancerous mass was
removed near her brain stem,
followed by radiation treat-
ments and then chemother-
apy to treat medul blastoma.
Although diagnosed as
cancer-free when she was
about 8 years old, Kishpaugh
has residual effects from the
treatments that saved her life.
A hormone deficiency will
require her to take medication
for the rest of her life. Also, she
sees an endocrinologist every
six months and has a brain
scan every 12-24 months.
Kishpaugh
remembers
participating in her first Relay
event — still weak from
treatments, she only managed
to walk a partial lap. Over the
years she has walked with
others from Jr. Jam, where
she’s a dance instructor, and
has presented Zumba classes.
In addition, a trained beauti-
cian, Kishpaugh has also cut
hair during the event.
In addition to walking
laps, Relay for Life features a
free survivor’s meal (11 a.m.),
silent auction (11 a.m. to 4
p.m.), team booths with fund-
raising activities, live enter-
tainment by local amateur
performers, music with the
Severe family (12-1:30 p.m.),
yoga with Tania Wildbill (2
p.m.) and Table Talk by local
Toastmasters. Also, Pendle-
ton Center for the Arts will
host several activities, includ-
ing Free for All at 9:30 a.m.
Stations will have supplies for
people to paint rocks and cre-
ate luminaria bags. The lumi-
naria and closing ceremonies
begin at 8:30 p.m.
Preston said in addition to
combining area events into
one regional Relay for Life,
the American Cancer Soci-
ety has less hands-on involve-
ment. Both changes have
resulted in more money going
directly to cancer research and
to support those battling the
disease, rather than adminis-
trative costs, Preston said.
“It has been a great change
for us as volunteers, we have
a little more freedom but have
found out how much our sup-
port really helped us behind
the scenes,” she said.
For more information,
contact Preston at relaypend-
leton@yahoo.com, 541-379-
6294 or visit www.relay.
acsevents.org.
to CRP as a reason to lift
the dairy’s bankruptcy pro-
tections, which would allow
the cattle auction to move
forward.
U.S. Bankruptcy Judge
Fredrick Clement denied that
request during a hearing last
month, but may revisit the
matter.
“Frankly, I think this issue
is going to resolve itself one
way or the other,” he said. “If
Columbia River refuses to
accept milk and the debtor is
unable to force them to do so,
undoubtedly this issue will ...
rise to the top of the matters
under consideration and will
be addressed again by this
court.”
The other major factor
affecting Lost Valley Farm
is its settlement of a lawsuit
with Oregon farm regulators
over improper wastewater
disposal.
In court documents, te
Velde acknowledged he was
facing a contempt hearing
because ODA claimed the
dairy was out of compliance
with the deal.
The judge declined to lift
the dairy’s bankruptcy pro-
tections on these grounds,
though he could reconsider if
the ODA actually shuts down
its operations.
“My guess is the Ore-
gon Department of Agricul-
ture has its remedies without
seeking stay relief,” Clement
said.
PENDLETON
Whisky Fest will sell
extra tickets Friday
East Oregonian
After quickly selling
out tickets to its July 14
show, Pendleton Whisky
Music Fest is opening up a
limited number of unused
artist and sponsor tickets at
10 a.m. Friday.
In the same announce-
ment,
Whisky
Fest
announced
additional
openers for headliners Pit-
bull and Blake Shelton as
well as another musical act
for the Friday Night Kick-
off Party.
A free event on Main
Street the night before
Whisky Fest, the kickoff
party will start at 7 p.m.
and feature Precious Byrd
as the main act. Accord-
ing to the act’s website,
Precious Byrd is a “dance
band” from Bend that cov-
ers “modern and classic
hits” as well as original
songs.
A returner from last
year’s Whisky Fest, DJ
Sovern-T will also per-
form at the kickoff party
in addition to being the
first musical act at 4 p.m.
when Whisky Fest opens
its gates.
Britnee Kellogg will
follow DJ Sovern-T. Orig-
inally from Vancouver,
Washington, the coun-
try artist has appeared on
“American Idol” and has
shared a stage with Martina
McBride and Lee Brice.
The Shadowboxers will
take the stage at 6 p.m. to
play their R&B-influenced
music. Based out of Nash-
ville, The Shadowbox-
ers have opened for Justin
Timberlake.
From there, Pitbull will
play from 7:30 p.m. and
Shelton will take the stage
at 9:30 p.m.
Pendleton
Whisky
Music Fest will take place
on July 14 at the Pendleton
Round-Up Grounds. For
more information on tick-
ets, visit www.pendleton-
whiskymusicfest.com.
HERMISTON
Fire near DHS spreads quickly
HERMISTON — A fire
at the south end of Herm-
iston caused employees to
evacuate multiple buildings
Thursday afternoon.
A fire started in some
shrubs around 2:35 p.m. on
950 S.E. Columbia Drive,
right next to the Department
of Human Services park-
ing lot, and the wind blew
embers over into an alfalfa
field across the street, caus-
ing a fire that burned about
three acres.
Scott Goff, fire marshal
for Umatilla County Fire
District 1, said no cause has
yet been determined for the
fire. He said because of the
wind, crews would likely be
out there mopping up the fire
all evening.
Though
no
struc-
tures were affected, the
blaze required many DHS
and Worksource Oregon
employees to move their
cars. DHS, Worksource
Oregon and Blue Moun-
tain Community College
employees also had to leave
their buildings for close to
an hour.
“The shrubs went up into
flames in a matter of sec-
onds,” said Hilda Marti-
nez, a Worksource Oregon
employee.
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