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CITGO fined $13 million for Clean Water Act violation
CITGO pleaded guilty and was sentenced to pay a $13 million fine for the negligent discharge of pollutants into two rivers in Louisiana in violation of the Clean Water Act. The $13 million fine is the largest ever for a criminal misdemeanor violation of the Clean Water Act.
The energy company did not maintain storm water tanks at its refinery in Sulphur, Louisiana. This caused more than 50,000 barrels of oil to run into the Indian Marais and Calsasieu rivers.
CITGO converted its lagoon waste water system into a tank system for handling excess waste water and storm water in 1994. To save money, only two storm water tanks were constructed. As early as 1998, employees and outside contractors pointed out the need for a third tank. Additionally, the company did not follow standard maintenance procedures, including removing oil and sludge which reduced the tanks' capacities. A heavy rainstorm in mid-June 2006 overwhemled the two existing tanks forcing oil into the two rivers. Commerical river traffic was restricted for nearly two weeks.
In addition to the record fine, CITGO will implement an Environmental Compliance Plan which will ensure such a spill will not happen again. The Plan includes completion of a third tank, installation of more effective oil removal equipment for the tanks and enhanced reporting within the corporation regarding environmental issues and tank maintenance.