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(The following story by Jeff Rossen was posted on television station WABC’s website on January 28. Photos and video to accompany the story are available on WABC’s website at: http://abclocal.go.com/wabc/news/print_WABC_012803_njwaste.html)

JERSEY CITY — Investigators made what they are calling a horrifying discovery at a Jersey City rail yard Tuesday. Officials say the 54-acre site was littered with illegal toxic sludge, sewage and waste.

Jersey City officials filed a cease and desist order against New York Cross-Harbor Railroad Tuesday after investigators discovered the owners of the site have allegedly been illegally dumping solid waste, sludge and sewage all over the property on Linden Avenue.

Investigators say New York Cross-Harbor Railroad operates the Jersey City site, a 54 acre rail yard. City officials say they found unsealed containers of waste all over the huge complex.

The city’s dealings with the company started back in April when the health department told the company to stop dumping toxic waste on the site. Officials say neighbors and workers in the area have called the city in the past couple of weeks, complaining about a horrible odor. That led investigators back to the site, where they found more evidence of illegal dumping.

Investigators say the “illegal landfills” were three feet high, in some cases, filled with sewage and waste.

Mayor Glen Cuningham, Jersey City: “Health officials determined this to be a definite risk and nuisance. Here’s what we have ordered them to do. One, remove all unsealed containers holding sludge and similar refuse. Two, remove and lawfully dispose of all landfill materials based upon an approved sampling plan.”

We spoke with the owner of New York Cross-Harbor Railroad by phone Tuesday afternoon. He said, “We have a difference of opinion with Jersey City about what railroads can and can’t do. We transport processed biosolids, which is fully legal. We have never dumped it on our property.”

It was unclear Tuesday afternoon, if any material investigators found at the rail yard is dangerous to people living or working in the area. City officials say it may be. The DEP is scheduled to visit the site this week so they can dig up samples to be tested.