BRANCH OF CANADIAN COMPANY TO PAY $2.5 MILLION FOR VIOLATIONS OF WASTEWATER PLANT IN SHREVEPORT, LA

FROM:  U.S. JUSTICE DEPARTMENT 

Thursday, July 10, 2014

U.S. Branch of Canadian Company to Pay $2.5 Million Penalty for Shreveport, La., Wastewater Plant

Settlement Resolves Water, Hazardous Waste and Air Violations

Houston-based CCS (USA) Inc. and several of its operating subsidiaries will pay a $2.5 million civil penalty relating to operations at its Shreveport, Louisiana, industrial wastewater treatment plant, the Department of Justice, U.S. Environmental Protection Agency (EPA) and the state of Louisiana announced today.  The settlement will resolve violations of the Clean Water Act, the Clean Air Act and the hazardous waste law known as RCRA.

CCS acquired the plant in 2006 through its purchase of two closely held companies owned by John Emerson Tuma.  Tuma is now serving a five-year prison sentence for illegally discharging untreated and improperly treated wastewater from the plant into the Red River and Shreveport Publicly Owned Treatment Works (POTW).  Inspections by EPA and the Louisiana Department of Environmental Quality following the sale led to the discovery of these violations and others, including unpermitted storage and improper handling of hazardous wastes and sludge, unpermitted stormwater discharges and noncompliance with Clean Air Act requirements for benzene-containing wastes.

After discovering these violations, CCS ceased wastewater treatment operations at the facility.  Under EPA supervision, CCS removed the hazardous wastes illegally stored there.

The $2.5 million civil penalty will be split evenly between the United States and state of Louisiana.

The stipulation of settlement, filed in the U.S. District Court for the Western District of Louisiana, is subject to a 45-day public comment period and approval by the federal court.

FOUNDRY AND PRESIDENT PLEAD GUILTY TO ILLEGAL STORAGE OF HAZARDOUS WASTE

Franklin Foundry and Company President Pleaded Guilty to Illegally Storing Hazardous Waste

The following excerpt is from the EPA website:

“WASHINGTON – John R. Wiehl and the company, Franklin Non-Ferrous Foundry, Inc., pleaded guilty to unlawfully storing hazardous waste under the Resource Conservation and Recovery Act (RCRA). Wiehl, 64, is the president of the foundry, which is located in Franklin, N.H.  The company manufactures a variety of metal parts for various industrial applications. A byproduct of the foundry’s operation is the generation of waste containing hazardous or toxic concentrations of lead and cadmium. Exposure to lead and cadmium can cause or contribute to a range of health effects, including behavioral problems, learning disabilities and kidney disease.

In April and August 2009, two workplace inspections conducted by the Occupational Safety and Health Administration (OSHA) found that the company was illegally storing hazardous waste. Under RCRA, a generator may not store hazardous waste at its facility for more than 90 days without a permit. OSHA reported the findings of their inspections to EPA. In December 2009, EPA executed a search warrant at the foundry and discovered drums of hazardous waste stored on the premises.

In August 2010, a federal grand jury indicted Wiehl and Franklin Non-Ferrous Foundry for unlawfully accumulating and storing lead and cadmium hazardous waste at the foundry site since July 2005. Neither Wiehl nor the company had been issued a permit to store hazardous waste for more than 90 days. The company was cited by EPA for similar violations in 2002 and 2005, but neither the company nor Wiehl previously faced criminal charges.

Wiehl faces a possible maximum sentence of two years in prison and a maximum fine of $250,000. Under the terms of a plea agreement filed with the court, the United States Attorney’s Office has agreed to recommend that he serve two years of probation, six months of house arrest, and that he publish a public apology. Franklin Non-Ferrous Foundry, Inc is facing a possible maximum fine of $500,000.”

DOW CHEMICAL TO PAY $2.5 MILLION FOR ENVIRONMENTAL VIOLATIONS AT MIDLAND MICHIGAN PLANT

The following is an excerpt from an EPA e-mail distributed to subscribers:

WASHINGTON – The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice today announced that Dow Chemical Company (Dow) has agreed to pay a $2.5 million civil penalty to settle alleged violations of the Clean Air Act, Clean Water Act and the Resource Conservation and Recovery Act (RCRA) at its chemical manufacturing and research complex in Midland, Mich.

“Communities near large industrial facilities depend on EPA to enforce our nation’s environmental laws and protect public health and the environment,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement with Dow will reduce the potential for future violations and protect communities from emissions of hazardous air pollutants.”
"This compliance program should serve as a model for industry and will go a long way to assure future violations will not happen again at this facility,”said Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division at the Department of Justice. “Dow worked cooperatively with the government to resolve this matter and in doing so set an example for responsible compliance with our nation’s environmental laws.”
In addition to paying a penalty, Dow will implement a comprehensive program to reduce emissions of volatile organic compounds (VOCs) and hazardous air pollutants (HAPs) from leaking equipment such as valves and pumps. These emissions – known as fugitive emissions because they are not discharged from a stack but rather leak directly from equipment – are generally controlled through work practices, such as monitoring for and repairing leaks. The settlement requires Dow to implement enhanced work practices, including more frequent leak monitoring, better repair practices, and innovative new work practices designed to prevent leaks. In addition, the enhanced program requires Dow to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of VOCs and HAPs.

According to the 24-count complaint, filed simultaneously with the settlement today in the Eastern District of Michigan, Dow allegedly violated Clean Air Act requirements for monitoring and repairing leaking equipment, for demonstrating initial and continuous compliance with regulations applicable to chemical, pharmaceutical and pesticide plants, and for failing to comply with reporting and recordkeeping requirements. The complaint also asserts that Dow violated the Clean Water Act’s prohibition against discharging pollutants without a permit and violated the Resource Conservation and Recovery Act’s requirements for hazardous waste generators.

The consent decree is subject to a 30-day comment period and final approval by the court.”