Several Grand Valley State University scientists are in the unusual position of defending their integrity after Nestle Waters pulled the university into a debate over its bid to pump spring water from the White River watershed.

Nestle Waters officials recently announced that they would ask scientists at GVSU's Annis Water Resources Institute in Muskegon to review the company's plan to pump groundwater from natural springs near the headwaters of the White River.

The overture was supposed to ease public concern about Nestle's controversial plan.

Instead, it triggered allegations from some environmental advocates that GVSU researchers cannot be objective about the White River project. The reason: GVSU scientists have received three grants, totaling $53,653, from a $500,000 environmental improvement fund that Nestle's Michigan subsidiary, Ice Mountain, established in 2001 at the Fremont Area Community Foundation.

The Ice Mountain Environmental Stewardship Fund pays for work aimed at restoring and protecting the Muskegon River watershed, the source of most water bottled by Nestle's Ice Mountain label.

Environmentalist Jay Peasley said he believes the GVSU researchers -- who are engaged in research and river protection programs on the White River -- compromised their scientific objectivity on the Nestle controversy by accepting grants from the Ice Mountain fund.

"How can the Annis Institute indirectly receiving money from Ice Mountain not be a conflict of interest?" said Peasley, a member of the White River Watershed Partnership.

"Just because it was passed through the hands of the Fremont Area Community Foundation, it is still money from Ice Mountain," Peasley said. "It's a conflict of interest. Period."

Alan Steinman, director of GVSU's Annis Water Resources Institute, called the allegation "patently false."

"Ice Mountain and Nestle have never directly given us money for research," Steinman said. "We received three grants from the Ice Mountain Environmental Stewardship Fund -- two for a groundwater assessment in Mecosta County and one to study phytoplankton in Muskegon Lake.

"Ice Mountain officials have never asked to look at our data -- they are the most hands-off funder I've ever dealt with," Steinman said.

Nestle created the Ice Mountain Environmental Stewardship Fund the same year it built its Ice Mountain water bottling plant in Stanwood. Nestle last year bottled 226 million gallons of groundwater from the Muskegon River watershed at that facility.

The Fremont Foundation administers the Ice Mountain fund and decides which projects receive funding, foundation officials said.

Julie Stoneman, a veteran environmental advocate who serves on the advisory board that recommends grants from the Ice Mountain fund, said she sees no conflict of interest on GVSU's part.

"Grand Valley is a scientific institution -- its scientists aren't going to be swayed by the source of their funding," Stoneman said.

Increasing significance

Questions about GVSU accepting research grants from the Ice Mountain fund are significant for two reasons: The university is a major player in water-based research in West Michigan and Nestle wants to increase its production of Ice Mountain spring water in Michigan.

Nestle is considering building a second Ice Mountain bottling plant in Evart. The company's expansion plans focus on natural springs that feed trout streams in West Michigan: Twin and Chippewa creeks, which flow into the Muskegon River in Osceola County, and the White River.

Steinman and other GVSU researchers met with Nestle scientists and lobbyists in November at the institute's Muskegon facility to discuss the company's White River project. Steinman said the meeting was appropriate and that no financial issues were discussed.

GVSU scientists "have tremendous expertise with respect to the watershed and rivers in west-central Michigan," said Deb Muchmore, a spokeswoman for Nestle's Ice Mountain brand.

Peasley called the meeting between GVSU and Nestle officials "bothersome" because it occurred at the same time the university's scientists are drafting a plan for protecting the White River from pollution and other harmful human activities.

Steinman said GVSU's Water Resources Institute provides a public service by acting as a scientific resource for anyone interested in environmental issues, whether it's an individual or officials from Nestle, environmental organizations, a municipality or lake protection group.

"Ice Mountain is investing in sites in West Michigan, whether you agree with it or not, and it makes a lot more sense to have them talking to the scientists than acting blindly in the community," Steinman said. "If they're acting blindly in the community, they have a much greater chance of causing an adverse resource impact."

Nestle's financial support for environmental projects is significant and occasionally controversial. The Switzerland-based firm, the world's 53rd largest corporation and biggest water bottler, has donated millions of dollars over the past decade to groups and funds in the U.S. that work to protect water quality, according to company data.

Nestle Waters North America has donated $2 million to The Nature Conservancy to support the group's efforts to protect freshwater ecosystems in Maine, Virginia and Texas.

Nestle offered the Michigan Council of Trout Unlimited a $50,000 grant in 2003 for river conservation projects, according to Trout Unlimited records. The group's board of directors initially voted to accept the grant but reversed that decision after members of the group -- founded in Michigan in 1959 to protect cold water trout streams -- objected to taking money from a company that bottles the spring water that feeds trout streams, according to some members of the group.

Nestle also is the primary financial supporter of Project WET (Water Education for Teachers), a nonprofit group that helps teachers educate students about water resources and threats to rivers and lakes, company spokeswoman Muchmore said. Since Nestle first sponsored Project WET in 1992, 150,000 teachers in all 50 states have used the program to educate 23 million students about water resources, how to protect watersheds and wetlands and the "sustainable management of water resources," according to the group's literature.

Project WET hosted a water festival at Muskegon's Heritage Landing in 2000. In addition to learning about fresh water resources, the 700 Muskegon-area students at the event received free bottles of Ice Mountain water and T-shirts with an Ice Mountain logo on the front.

Project WET "is popular with teachers," said Janet Vail, an associate professor of water resources at GVSU and the Michigan coordinator for Project WET. Vail, who works at GVSU's Annis Water Resources Institute, said she is not compensated by Nestle or Project WET for her work on the water education program.

Though Nestle provides funds for Project WET and thousands of dollars in cash for water festivals across the United States, "Nestle has no control of the content of the Project WET curriculum guide," Vail said.

'Good neighbor' corporation

Muchmore said Nestle's support for groups like The Nature Conservancy and projects like the Ice Mountain fund reflect the company's commitment to being good environmental stewards. "Healthy watersheds and healthy ecosystems are part and parcel of their business," she said.

Nestle touts its involvement with Project WET and the Ice Mountain Environmental Stewardship Fund as part of the company's "good neighbor policy."

Over the past five years, the Ice Mountain fund has paid for 14 projects in the Muskegon River watershed totaling $241,143. Those grants were used to restore vegetative buffer strips along Houghton Lake, protect trout streams that flow into the Muskegon River and reduce soil erosion and stormwater runoff that can harm the river ecosystem.

"There have been some great projects that have received funding," Stoneman said. "I know some people say receiving money from corporations (for environmental projects) isn't good, but this fund has been put to good use."

An advisory board selected and controlled by the Fremont Foundation doles out money from the Ice Mountain fund. It includes an Ice Mountain official, a Ferris State University professor, a West Michigan businessman, Stoneman and Gary Noble, executive director of the Muskegon River Watershed Assembly. Noble said the Muskegon River Watershed Assembly does not accept grants from the Ice Mountain fund.

Steinman said "it's not my intent" to get involved in the debate over Nestle's White River project. But he added that GVSU might conduct an independent, scientific review of the project if asked and if money was available to fund the research.

"If we were asked by the state or the private sector to investigate water resources in the region, we would do a scientifically credible investigation," Steinman said.

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