Environmental Crimes Blog

USEPA Criminal Enforcement Compendium

A big “THANKS” to Jim Price for forwarding this link to me.

http://www.epa.gov/compliance/resources/cases/criminal/highlights/2011/index.html

It is a compendium of the USEPA’s criminal enforcement actions for the past several years.

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

The USEPA’s Fugitive List – A New Article

Got a heads up from my friend John McArdle at Environment & Energy News on the latest story on the USEPA’s fugitives list. Here is the link:

http://www.eenews.net/public/Greenwire/2012/01/11/1

Also, here is a link to the page that has all their stories that they have done on
the USEPA’s fugitive list:

http://www.eenews.net/special_reports/epa_fugitives

More later.

As always, feel free to contact me at walter.james@jamespllc.com.

WDJiii

Thank You

I would like to take this opportunity to thank all of you who have visited my blog over the last number of years and to especially thank my hard core readers.

My New Year's resolution is to post more often, to give you a reason to return.

But, in the meantime, just thanks. Thanks for reading.

More later.

As always, please feel free to contact me at walter.james@jamespllc.com

WDJiii

USEPA Enforcement Results for 2011

On December 8, 2011, the USEPA release its annual enforcement and compliance results. In its fiscal year 2011, USEPA enforcement actions levied civil penalties of approximately $168,000,000.00. The $168,000,000.00 in civil penalties assessed is a combination of $152,000,000.00 in federal penalties and $16,000,000.00 in joint enforcement by the USEPA and state/local governments. The USEPA does not disclose how much it actually collects (which I would submit would pose a greater deterrent). I always wonder what the collection rate is and whether the $168,000,000.00 is the “opening demand” on the civil penalties or is it the result of the negotiation process.

Cynthia Giles, the Assistant Administrator for the USEPA’s Office of Enforcement and Compliance Assurance, is quoted as saying that the annual results reflect the “strong and effective enforcement program” of the USEPA.

In FY 2011, the USEPA enforcement also resulted in $35,000,000.00 in criminal fines and restitution, $2,000,000.00 in court ordered environmental projects and “89.5 years of incarceration to deter future violations.”

You can get more information on the USEPA’s FY 2011 enforcement and compliance results at
http://epa.gov/compliance/resources/reports/endofyear/eoy2011/index.html

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

It is the Asphalt’s Fault?

On October 31, 2011, Mike LeBleu, who served as the asphalt facilities manager of the Pelican Refinery in Lake Charles, Louisiana, from May 9, 2005, through October 15, 2009, pled guilty to negligent endangerment under the Clean Air Act, by negligently causing the release of hydrogen sulfide into the air.

According to the joint factual statement filed with United States District Court, in August 2007, LeBleu facilitated the purchase of a load of asphalt that had extremely high levels of H2S. The H2S coming off the asphalt was allegedly so high that the barge carrying the load was previously denied entry into the Port of Houston. Because of the high H2S levels, LeBleu was able to negotiate a substantial discount. According to the factual statement, the Pelican Refinery would have to spend almost $25,000.00 in order to bring the H2S emissions down to safe levels for road construction, but even with that cost, the savings to the Pelican Refinery amounted to more than $140,000.00.

The asphalt arrived at the Pelican Refinery on August 19, 2007, and under LeBleu’s direction, employees on the asphalt barges were instructed to load the high-H2S asphalt into a specific tank that was not permitted for H2S emissions. The tank was vented directly to the atmosphere.

The asphalt was treated in an ongoing process that lasted approximately one month. During the treatment, regular samples of the H2S levels were taken; however, while LeBleu personally collected some of these samples, he also ordered his subordinates to collect such samples. These employees had to climb on top of the tank, open a hatch, and insert a sampling device into the hatch and were not provided with required breathing equipment.

The criminal investigation was conducted by the USEPA CID in Baton Rouge and the Louisiana State Police, with assistance from the LDEQ. My good friend Richard Udell was also involved in the prosecution.

LeBleu faces a maximum of one year in prison and a fine of $100,000.00.

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

Another One That Just Makes You Say “HMMMM”

On July 27, 2011, the USDOJ announced that a former special agent with the USEPA Criminal Investigation Division in Dallas, Texas, was charged in a two count indictment with lying under oath and obstructing justice. The indictment was returned in the Western District of Louisiana. Keith Phillips, of Kent, Texas, was charged with obstruction of justice and perjury stemming from his sworn testimony in a civil case currently pending in the Western District of Louisiana.

‪According to the indictment, from September 1996 to December 14, 1999, Phillips and a female FBI agent participated in a criminal investigation that led to the indictment of, among others, Hubert Vidrine Jr. The criminal charges against Vidrine were ultimately dismissed. Vidrine then filed a civil lawsuit against the United States for malicious prosecution. In a deposition in the civil case, Phillips allegedly testified that he did not have an affair with the female FBI agent, when, in fact, he had. Phillips then apparently hen contacted the female FBI agent in an attempt to influence her not to disclose the existence of the affair.

The indictment alleges that Phillips committed perjury when he testified falsely about the affair and committed obstruction of justice when he attempted to influence the female FBI agent.

Phillips faces a maximum of five years in prison and a fine of $250,000.00 on the perjury count and a maximum of ten years in prison and a fine of up to $250,000.00 on the obstruction of justice count.

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

New Use for Flares and a Kiddie Pool – Louisiana Oil Refinery

On July 6, 2011, the USDOJ announced that Byron Hamilton, the vice-president and general manager of the Pelican Refinery in Lake Charles, La., pleaded guilty to federal negligent endangerment charges under the Clean Air Act. Hamilton oversaw operations at the Lake Charles refinery from an office in Houston, TX.

According to the charges, Hamilton negligently caused the release of hazardous air pollutants, including hydrogen sulfide, which placed persons in imminent danger of death and serious bodily injury. The impetus for the charges was a March 2006 joint inspection by the LDEQ and the USEPA when inspectors found such conditions as storage of crude oil in unrepaired storage tanks, failure to repair emissions monitoring and control equipment, (and my favorites) the routine practice to use a standard signal flare gun to re-light the process flare at the refinery; and the use of plastic children’s swimming pools to contain petroleum leaks. It still amazes me that this type of activity still goes on in this day and age.

Hamilton faces up to one year in prison and a $200,000.00 fine for each of the two Clean Air Act counts. This case was prosecuted, in part, by my friend, Richard Udell.

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

John C. Cruden Named President of ELI

Today, June 15, 2011, the Board of Directors of the Environmental Law Institute (“ELI”) announced that John C. Cruden, the Deputy Assistant Attorney General for the Environment and Natural Resources Division, has been selected as ELI’s fourth President.   

In its press release, the ELI spoke of John Cruden:

"In his tenure at DOJ, Mr. Cruden helped shape comprehensive solutions to some of our nation’s most complex and controversial environmental disasters including Love Canal, Exxon Valdez and, most recently, Deepwater Horizon. Known for his negotiating and problem-solving skills as well as his expertise in the courtroom, Mr. Cruden has earned broad respect for his ability to work with diverse parties and his focus on preserving what works best in our nation’s laws."

I have worked with John Cruden on the ABA SEER.  John Cruden is an extremely talented and gifted leader.  He has a talent for bringing people together and creating real, meaningful solutions to tough environmental challenges.  He has my utmost and deepest respect and admiration.

While at the DOJ, John Cruden led the DOJ’s environmental civil litigation section.  Before joining the DOJ, he held a number of important positions including Chief Legislative Counsel of the Army, General Counsel of the Defense Nuclear Agency, and a Staff Judge Advocate in Europe.  John Cruden is a graduate of West Point and served in airborne, ranger and special-forces units in Germany and Vietnam. 

The DOJ lost a great one and the ELI is its beneficiary.

Congratulations, John!!!

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

John Cruden – Losing, and Gaining, a Good One

John Cruden is leaving the Department of Justice after over twenty years of service at the Environment and Natural Resources Division.  Mr. Cruden notified the ENRD section chiefs on Monday, May 23, 2011, that he would be leaving his post as Deputy Attorney General for the ENRD on June 22, 2011. 

John has accepted the position of President of the Environmental Law Institute.  The DOJ’s loss (and a huge loss to the environmental community) will be a HUGE gain for the ELI (and a huge gain for the environmental community).

John, thanks for your service!!  Your intelligence, wit and integrity will be missed at the DOJ and will be missed by those of us in the defense bar.

Now, I guess I will have a reason to join the ELI!

More later.

As always, feel free to contact me via e-mail at walter.james@jamespllc.com.

WDJiii

Environmental Crimes Enforcement Act- RESPONSE

This is a guest Post from Fred Burnside.

It is true that I have retired from the federal government (with very little reluctance I must add) and now find myself looking at environmental enforcement from a different perspective.  The fact is that our way of life depends on a clean healthy environment no matter which side of the fence you find yourself on.

It has been my experience that, by far, most corporations want to abide by environmental laws and regulations but find themselves caught between government regulators and the “bad actors” such as those the Environmental Crimes Enforcement Act is trying to influence with increased penalties.  These bad actors often gain an unfair financial advantage over their competitors by violating the law. 

But the regulators are not without fault either especially when they allow the end-of-year “bean count” and “statistics” to influence their approach to environmental enforcement.   I saw this process at work on a routine basis while working for the EPA.  This need to produce and show value encourages a system where nominal violators are easy targets and significant violators may go undetected. 

Walt, if being on the side of “truth and justice” means that I can assist clients in holding the regulators accountable for their actions and judgment count me in. 

Fred Burnside

Fred Burnside & Associates

Environmental Investigators and Consultants