Region 9: Compliance and Enforcement

EPA’s law enforcement efforts in the Pacific Southwest Region in 2005 brought in major shipping cases that led to worldwide compliance improvements for two shipping companies.

EPA investigations into illegal discharge of pollutants to U.S. waters resulted in the two companies being ordered to correct pollution violations on their vessels and pay large fines. EPA also investigates allegations of criminal wrongdoing under various environmental statutes including data fraud, illegal disposal of hazardous waste, illegal importation of certain chemicals; tampering with a drinking water supply; mail fraud, wire fraud, conspiracy and money laundering relating to environmental crimes.

Moller-Maersk ordered to develop plan for discharging oil at sea

A.P. Moller-Maersk, Company of Denmark, pled guilty and was sentenced to pay a $500,000 fine in the U.S. District Court for the Northern District of California. Moller-Maersk, which operates a fleet of over 200 vessels worldwide, was also ordered to develop and implement a fleet-wide environmental compliance program. The guilty plea was the result of a criminal investigation conducted by EPA and the US. Coast Guard into waste oil in the overboard piping of the Motor Vessel Jane Maersk. Also, the investigation uncovered evidence of false entries in the ship’s oil record book. The false entries concerned the operation of the ship’s incinerator which, in part, is used to burn waste oil sludge. In a related court action, the ship’s second engineer was sentenced to four months’ community confinement for his role in concealing and destroying key documents related to the investigation.

Evergreen pays largest-ever fine for container-ship pollution

The U.S. Department of Justice announced criminal charges in Los Angeles last year against Evergreen International, S.A, one of many Evergreen-related companies involved in the container ship business. Under the terms of a plea agreement, Evergreen paid $25 million, the largest-ever amount for a case involving deliberate vessel pollution, and plead guilty to felony charges brought in Los Angeles; Newark, New Jersey, Portland, Oregon, Seattle, and Charleston, South Carolina. Evergreen pleaded guilty to 24 felony counts and one misdemeanor-five counts from each federal district involved in the case-for concealing the deliberate, illegal discharge of waste oil and for a negligent discharge in the Columbia River. The charges include making false statements, obstruction of Coast Guard inspections, failing to maintain an accurate Oil Record Book, and one negligent violation of the Clean Water Act relating to the discharge in the Columbia River. Following the guilty pleas, U.S. District Judge Terry J. Hatter, Jr. ordered the company to pay $25 million to be divided equally among the five judicial districts involved. Of this amount, $10 million will be directed to environmental community service projects in each district.

EPA’s law enforcement emphasizes accurate water quality laboratory data to ensure safe ocean and drinking water for Pacific Islands

Saipan lab manager sentenced for falsifying drinking water reports to EPA

Pedro Q. Babauta was sentenced to 12 months in jail and fined $5,000 in federal court in Saipan for submitting false documents to EPA. Babauta, the ex-laboratory manager of the Commonwealth Utilities Corp., was accused of knowingly and intentionally falsifying the utility firms’ drinking water reports submitted to EPA in 2001 and 2003. A joint investigation by the Commonwealth of the Northern Mariana Islands division of Environmental Quality and EPA found that Babauta hid positive test results for the presence E. coli and coliform bacteria. Bacteria in the public water supply can cause illnesses among the public, with symptoms including cramps, headache and nausea.

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