Scotts to pay $500,000 fine over biotech bentgrass

By Christopher Doering

WASHINGTON, Nov 26 (Reuters) - The Scotts Co. (SMG.N) will pay a $500,000 fine over allegations that it failed to comply with U.S. rules for field-testing a genetically engineered variety of grass used on lawns, athletic fields and golf courses, the U.S. Agriculture Department said on Monday.

The settlement involves field tests in Oregon and 20 other states of creeping bentgrass modified to resist weed killers such as Monsanto's (MON.N) Roundup. A golf course, for example, could be sprayed, killing weeds without hurting the grass.

The civil penalty is the largest allowed by the Plant Protection Act of 2000, according to the USDA's Animal and Plant Health Inspection Service (APHIS).

An APHIS spokeswoman said the allegations included failure by Scotts to follow proper equipment-cleaning procedures and to have all required buffer zones around the genetically engineered crop to prevent mixing with traditional crops.

She said the company has implemented measures to comply with performance standards and permit conditions related to these allegations.

A spokesman for Scotts did not return calls seeking comment.

"USDA takes compliance with its biotechnology regulations very seriously," said Bruce Knight, under secretary for marketing and regulatory programs. "Compliance is, and will always be, our highest priority and we will continue our rigorous oversight of regulated genetically engineered plants."

In addition, APHIS alleged Scotts failed to prevent bentgrass or its offspring from persisting in the environment following a field trial in Oregon in 2003.