Ouray water bottling operation litigation nearing end

OURAY — Negotiations that would pave the way to restoring water bottling operations in Ouray are expected to be finished by week’s end.

An owner of the water bottling plant said that the parties involved are finalizing paperwork to end litigation that stalled the plant’s operation, said Darrell Boepple of Black Gold Organic Fertilizer. The company placed the $3.8 million winning bid in late October for ownership of the plant, located at the north end of Ouray.

“There’s a lot of new things that are going to be announced at a later time,” said Boepple, who emphasized that his company is the water bottling business’ silent partner, an investor without management responsibilities.

Shortly after winning the bid, the Texas company Black Gold Organic Fertilizer became mired in legal action with UPS Capital Business Credit regarding rights to the BIOTA packaging and name. Boepple’s company filed a lawsuit in early January alleging fraud by UPS Capital, according to several published reports. UPS Capital countered with a motion to dismiss the case.

Boepple said the lawsuit has been dropped but that the paperwork has not been finished. He said the issue over rights to the BIOTA name has been cleared up but would not provide any details because of ongoing negotiations. He declined to name the other partner and would not say whether the partner was a local company.

“It (the name) will probably be used in some way but that’s to be determined,” he said. He added that company officials have not spoken to BIOTA founder David Zutler, though they have been working with engineers to change the packaging. Zutler, citing existing litigation, declined to comment on anything.

“If we can get in the process of having labels made, everything cleaned up within 30 to 60 days, than we’d be marketing water this spring,” said Boepple.

 “We want to (have) as much production as we can.”

He estimated that the plant would have anywhere from nine to 10 people on regular payroll, plus management. However, he cautioned that any information about the operation is just speculation at this point.

Ouray City Administrator Patrick Rondinelli said Monday that he hasn’t officially talked to any representatives from Black Gold Organic Fertilizer. Operators of the plant must secure a contract with the city if it intends bottle the city’s water.

Rondinelli said these contract negotiations could potentially be completed in a relatively short time. Based on discussions with those familiar with the plant operation, however, he added that a projected summer start may be optimistic.

“From the city’s angle, we don’t plan to drastically change the contract. We would like to do some modifications to the contract (but) it would be more beneficial to us and the company to not make any (major) changes,” said Rondinelli. “Once (the contract’s) done and in place, we would be happy to turn on the water ... I hope it works out. We’re sick of seeing an empty building.”

The water bottling plant was sold in 2007 after UPS Capital Capital Business Credit filed a lawsuit against Zutler for failing to make payment on what amounted to $8.2 million in debt since roughly July 2005, the Daily Press reported. BIOTA Brands of America Inc. filed Chapter 11 bankruptcy in April 2007.

Contact Lisa Huynh via email at lisah@montrosepress.com