Northern Nevada: Health studies hinder Fallon economy

FALLON -- Fallon has long been the type of small-town environment that breeds strong regional pride among its residents. Low crime, mild weather and an abundance of outdoor recreation appeal to those seeking an alternative to more urban settings.

Parents with school-age children are especially fond of the community, citing its excellent schools and small-town attitude as the perfect place to raise kids.

"It has the city benefits, but it's still rural, so it's got the benefit of both," said Michael Berney, owner/broker of Berney Realty, the largest real estate firm in town. "Kids can do things they can do in a big city, such as play ball, join clubs ... but they can also do things they might not be able to do in a city, such as ride horses and raise animals."

Their love for this idyllic Lahontan Valley town began to be tested more than two years ago when residents realized several children showed signs of an illness of mysterious origins.

Beginning in late 1999, several cases of leukemia were diagnosed among children living within and just outside city limits. None realized the extent until the families established contact with one another through the assistance of a local nurse. Five cases at the end of 1999 quickly swelled to 11 in early 2000 as people came forward with their children's illnesses.

Since 1997, 16 children who live or formerly lived in Fallon are known to have been diagnosed with childhood leukemia. Three have died. In a community of fewer than 10,000 residents, that is considered a much higher than expected rate, according to state and federal sources that have investigated the leukemia cluster.

As reports became public, the effect on local business was harsh. Many residents quickly left, leaving behind vacancies in homes throughout town. The U.S. Navy, one of the area's largest employers, adopted a new policy allowing family of personnel stationed in Fallon to live in housing elsewhere. With fewer people, business slowed dramatically for retailers.

Residents are now torn between protecting their children and preserving their local economy. Calling attention to the cluster brings scientific studies and hope of a resolution, but as Fallonites have feared, it also gives their city a black eye.

"It's really hurt us. Between leukemia and 9-11, it's been dead in this town," motel owner Joanne Woodliff said.

Thus far the studies have not told Fallon residents whether or not their community is safe again, or even if it was ever dangerous in the first place. Some have suggested a possible fuel leak along a gas pipeline owned by energy company Kinder-Morgan; others point to the water, which is known to contain arsenic; and newer reports have focused on the presence of the metal tungsten in the environment.

The parade of health agencies that have come through Fallon in the past two years have offered ambiguous clues to the cause.

The lack of resolution has been frustrating for residents. All would like to see the cluster resolved so the city can recover -- both in health and commerce. Many believe finding a cause is the key.

As 11-year residents, Reto and Brenda Gross are committed to life in Fallon, but having watched their youngest child, 7-year-old Dustin, complete nearly three years of chemotherapy has raised doubts. They want to stay, but more importantly, they want to know that the danger has passed.

"We love this town. We'd just like to know that, if there was a mess, that they cleaned it up, that there isn't going to be any more (leukemia cases) and that Fallon is fine again," Reto Gross said.

The Grosses and other families took their concerns to the state in 2000, but were unsatisfied with the response. The families were reluctant to approach media outlets, knowing negative publicity was the last thing Fallon needed. Concern for their children won out.

"To get the state to do anything, you have to go through the media, and then your town gets bashed. It really hurts us economically to have all this out here. It's sad, but I've found that's what it takes," Brenda Gross said.

Since then, several studies have been conducted, most recently by the Environmental Protection Agency in mid-September. The federal agency reported elevated levels of tungsten in the urine of residents and found higher-than-expected quantities of tungsten in local homes.

Some scientists suspect heightened levels of arsenic in Fallon's water supply may be a factor. University of California, Berkeley, researchers are studying the effects of arsenic in drinking water on several facets of public health. Fallon's arsenic levels have tested at more than 100 parts per billion, one of the highest concentrations in the nation. Skeptical longtime residents point out that arsenic levels have always been high.

Researchers have also investigated reported fuel leaks along a pipe carrying JP-8, a fuel used by many military vehicles, including those at Naval Air Station Fallon. A fuel leak was reported as recently as mid-September.

Mark Witten, a toxicologist from the University of Arizona, has studied JP-8 for more than 10 years. He said the fuel acts as a powerful immunosuppressant when superfine mists are inhaled , such as those found on military bases or possibly around leaks. It may contribute to diseases linked to a weakened immune system, such as leukemia. Exposure to the fuel has not been confirmed.

"If that's what's causing leukemia, then it's a nationwide problem because there's military bases all over the country," said Woodliff, tapping a pencil stamped "U.S. EPA - Health Study" that she keeps at her motel's front desk.

Realty agents said there has been a significant slowdown among rental properties, commercial properties and resale homes.

"It's been the Fallon leukemia cluster," Fallon property manager Charles Neefe said. "Two or three years ago (before the leukemia cluster was reported), there was no vacancy. It was fun."

After the reports, newer residents occupying rental properties left in fear of the cluster. Occupancy is now closer to 50 percent among the 1,000 rental properties in Fallon, according to Neefe, who manages about 145 units as a broker with Eagle Realty Inc.

The greatest loss, he said, has been among families linked to the Navy. Before the Navy's change in housing policy, rental occupancy was about 80 percent military. It has since fallen to 15 percent.

With each new report, more families leave.

"We've had five families move just since the tungsten levels were announced (in early September)," Neefe said.

To a lesser extent, he said, the entire market has suffered. Resale homes languish on the market and several businesses have closed, including the town's Denny's and Baskin-Robbins. Even Fallon Realty has moved its offices 20 miles down the road to Fernley.

"That should tell you something," Neefe said.

"This leukemia thing and this arsenic thing and this tungsten thing has really hurt us. There's concerns there."

Berney said the resale market has been soft but is improving. The second generation real estate broker reports selling 195 homes on the year as of late September.

"From a home seller's standpoint, it's been down for a couple of years because of the leukemia reports, but it's recovered this year and is doing pretty well," Berney said.

One of the greater problems facing home sellers in Fallon, he said, is unrealistic pricing. New homes are under construction in several areas, and are more competitively priced than resales.

Berney said longtime residents are more likely to stay and that the problem comes from a fear of the unknown.

"If you were an investor and you've never been to Fallon and you've read all the crap you've heard in the media, you might stay away."

Like the Grosses, Berney would like to see the leukemia cluster resolved, but is less focused on finding a cause. Besides, he believes the problem has gone away.

He may be correct. After eight cases were reported in 2000, only two were reported the next year. One case has been reported thus far in 2002.

"There isn't a lot of pure water anywhere anymore, and I don't think ours is that bad. It's clean and it's as pure as anywhere," Berney said.

"There's concerns everywhere. They're better than (our) concerns because you know what you can do. Here it's kind of unknown."

Having grown up and having raised his own family in Fallon, Berney's sold on it as a place for families. He has some reservations because of his children, but generally does not fear the cluster.

"You wouldn't do anything different if you had a cluster in your town. You can go to Las Vegas and your kid can get run over in the street."

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