Written by In the quiet corridors of Galion’s City Hall, the physical remnants of a decade-old scandal still linger in the collective memory of its citizens. It is the ghost of a bottle of correction fluid—a mundane office supply that, in 2013, became a symbol of systemic opacity. When Mayor Tom O’Leary used white-out to strike his own signature from a council resolution that would have triggered a state investigation into the city’s power contracts, he didn’t just erase a name; he arguably erased a community’s path to accountability.
Today, that same community stands at a familiar crossroads. As of February 2026, the Ohio EPA has issued a conditional, high-stakes green light for a $1.16 million water aeration project. While the administration presents this as a technical triumph over toxic byproducts, the “strings” attached to this approval reveal a city still struggling to breathe under the weight of “take-or-pay” debt, regulatory mandates, and a legacy of administrative maneuvers that residents increasingly view as a cycle of “band-aid” solutions funded by future generations.
The Prairie State Coal Plant: A 50-Year Debt Trap
The growing dissatisfaction over water management mirrors Galion’s 50-year “take-or-pay” contract with the Prairie State Energy Campus (PSEC), which has become a significant financial anchor for the community.
The “Whiteout” Scandal and Corruption Concerns
The citizenry views city leadership with deep suspicion rooted in the 2013 “Whiteout” scandal.
- The Incident: Galion’s Mayor used correction fluid to cover his signature on a city council resolution that requested the Ohio Attorney General investigate the Prairie State contract.
- The Veto Defense: The Mayor claimed the correction was intended as a veto, reportedly after receiving pressure from leaders in other cities invested in the plant.
- Outcome: This procedural maneuver stalled the investigation. Galion, which would have been the first Ohio city to request a formal AG probe, saw the effort die in a state of procedural confusion.
- Potential Illegality: Legal experts point to several statutes that may render such an act illegal:
- Tampering with Records (ORC 2913.42): Prohibits the knowing alteration of government records with the purpose to defraud. As a government record, altering a signed resolution could be viewed as a felony of the third degree.
- Interfering with Civil Rights (ORC 2921.45): A public servant cannot knowingly deprive a person of a constitutional or statutory right. Bypassing the council’s legislative authority could be argued as a violation.
- Prohibiting Destruction or Damage of Records (ORC 149.351): All records are the property of the public office and shall not be “mutilated… or otherwise damaged.” Altering the physical state of a resolution with white-out constitutes damage under this law.
History of Violations and Legal Challenges
- “Illegal” Operation: A federal judge ruled in August 2024 that the PSEC had been operating for a decade without a required Title V air permit, stating that state and federal governments had “simply ignored the Facility’s existence.”
- Mercury Emissions: In 2021, the plant exceeded federal limits on mercury emissions, resulting in a formal Violation Notice from the Illinois EPA in January 2022.
- Cost Overruns: Originally estimated at $2 billion, construction costs ballooned to over $4.4 billion by 2010, forcing municipal investors to borrow more money and raising electricity rates to “undesirable levels.”
Financial Impact on Galion
- Price Gap: Galion was promised low-cost electricity, but wholesale rates reached over $80 per MWh, nearly double the regional market rate of approximately $41 per MWh.
- Above-Market Debt: By 2013, Galion was estimated to be on the hook for $8 million in extra costs through 2025 compared to open-market power.
- The “Take-or-Pay” Burden: Municipalities signed contracts to buy power from and finance the construction of the massive campus and adjacent coal mine. If a community defaults, the remaining participants must pick up their share.
- Zero Electricity Payments: Under the rigid contract, some communities found themselves making massive monthly payments even during periods when the plant produced zero electricity.
The Water Crisis: Solution or Symptom?
On February 3, 2026, the Ohio EPA issued conditional approval for Galion’s Clearwell Aeration project (Application No. DDAGW-3392). This $1.16 million endeavor is designed to “strip” Total Trihalomethanes (TTHMs)—disinfection byproducts linked to long-term health risks—out of the water supply.
The Financial Contradiction:
City administration publicly claimed in January 2026 that $3,000,000 has been spent on plant improvements since 2024, asserting that “loans were unnecessary.” However, the official EPA approval specifically warns that if a Water Supply Revolving Loan Account (WSRLA) loan is desired, the city must comply with the requirements of Ohio Revised Code 6109.22. Any revisions to the plans necessitated by WSRLA requirements will require a resubmittal and new approval from the agency before construction can begin.
Project Financials: Spending vs. Results
Citizens argue the city is trapped in a cycle of “band-aid” spending. The following table tracks major investments against their objectives and outcomes:
| Project Phase | Estimated Cost | Primary Objective | Current Status/Result |
| Clearwell Aeration | $1,168,440 | Reduce TTHM levels to meet EPA standards. | Pending: Conditional approval; requires intensive monitoring for corrosive side effects. |
| Amann Pump House | $2,183,000 | Infrastructure modernization scheduled for 2026. | Budgeted: Adds to the cumulative city debt load; plans were due March 2026. |
| Tank Mixers | $55,376 | Improve circulation to prevent stagnation. | Completed: Previous fix that failed to permanently resolve EPA TTHM violations. |
Technical Mandates and Operational Risks
The EPA’s approval carries heavy operational burdens that reveal the fragility of the current system:
- Verification Study: Galion must conduct a study once the aeration system is active to ensure adequate TTHM reduction at Locational Running Annual Average (LRAA) sites.
- The First-Week Surge: During at least the first week of operation, total and free chlorine residuals and pH must be monitored at each clearwell influent and effluent at least three times—Monday, Wednesday, and Friday.
- Corrosion Warnings: Because aeration changes water chemistry, the city is mandated to collect 60 routine lead and copper samples. They must also monitor 10 distribution sites twice during the first six-month period for parameters like alkalinity, calcium, and dissolved oxygen.
- CT Disinfection Logic: If water quality differs significantly between Clearwell No. 1 and No. 2, the disinfection Contact Time (CT) must be calculated separately for each clearwell, based on the higher pH and minimum chlorine concentration.
Galion’s Deepening Financial Woes
The water project costs represent only a fraction of Galion’s broader financial instability, characterized by mounting debt and administrative friction over fund management.
- Cumulative Infrastructure Debt: The city is juggling multiple million-dollar mandates simultaneously, including the $1.16M aeration project and the $2.18M pump house, leading to concerns that Galion is over-leveraged.
- Fiscal Transparency Issues: Disputes between the Mayor’s office and the City Auditor have historically centered on the handling of city funds and the accuracy of financial reporting.
- Utility Fund Depletion: High operational costs at the water and sewer plants, combined with the massive “take-or-pay” energy payments, have historically strained the city’s enterprise funds, often leaving little room for emergency repairs or long-term upgrades without seeking new debt.
- Economic Stagnation: With a declining industrial tax base, the burden of these multi-million dollar “fixes” falls increasingly on a resident population already dealing with some of the highest utility rates in the region.
The Citizen Perspective
Residents view the new aeration project as a repeat of the coal plant mistake: a multi-million dollar commitment that addresses symptoms rather than causes. The EPA’s mandate for 60 routine lead and copper samples confirms that this water “fix” introduces a new risk—potentially making the water more corrosive and leaching lead from older household pipes. Furthermore, a verification study is required once the system is in operation to ensure adequate TTHM reduction and monitor for unintended consequences like pH changes or low chlorine residuals.
Works Cited (Click Here)
- Detail Plans for Proposed Improvements – Clearwell Aeration and CCTR.
Date: February 3, 2026.
Relevance: Official Ohio EPA approval letter outlining technical requirements, monitoring mandates (lead/copper sampling), and loan conditions for Galion’s new water project.
URL: Internal Document (Cited Inline.) - “Galion mayor uses correction fluid to hide cost of coal-plant project.”
Date: September 11, 2013.
Relevance: Primary source describing the signature alteration incident and the Mayor’s justification for the veto.
URL: https://www.dispatch.com/story/news/environment/2013/09/11/galion-mayor-uses-correction-fluid/23284605007/ - “Small towns take their lumps after betting big on coal energy.”
Date: July 11, 2012.
Relevance: Provides context on the national “take‑or‑pay” crisis affecting municipal budgets and the failed promises of low‑cost coal power.
URL: https://www.nbcnews.com/news/world/small-towns-take-their-lumps-after-betting-big-coal-energy-flna6c10523597 - Ohio Revised Code § 2913.42 – Tampering with Records.
Date: Current Law (Effective September 30, 2011).
Relevance: Outlines the criminal penalties for altering government records.
URL: https://codes.ohio.gov/ohio-revised-code/section-2913.42 - Ohio Revised Code § 2921.45 – Interfering with Civil Rights.
Date: May 17, 2021.
Relevance: Prohibits public officials from knowingly depriving citizens of statutory rights.
URL: https://codes.ohio.gov/ohio-revised-code/section-2921.45 - “Ohio towns have buyer’s remorse over Prairie State Energy Campus.”
Date: October 12, 2023.
Relevance: Covers the ongoing financial burden and the legal/environmental battles surrounding the coal plant that mirror current water infrastructure concerns.
URL: https://www.canarymedia.com/articles/enn/ohio-towns-have-buyers-remorse-over-prairie-state-energy-campus - “Exit strategy from Prairie State: How towns could get out of a bad deal.”
Date: July 16, 2015.
Relevance: Explains the “take‑or‑pay” structure and how communities like Marceline and Hermann, MO, attempted to exit their debt obligations.
URL: https://www.canarymedia.com/articles/enn/exit-strategy-from-prairie-state-how-towns-could-get-out-of-a-bad-deal