By Bruce Geiselman
 
Aug. 17 --

A Greek shipping company has pleaded guilty to illegally discharging oil from a ship and then obstructing a Coast Guard investigation.

Danaos Shipping Company Ltd., headquartered in Piraeus, Greece, has agreed to pay a $500,000 criminal fine, with half the fine going toward community service projects benefiting the environment.

A Danaos representative appeared in Aug. 14 in U.S. District Court in Los Angeles. He entered guilty pleas on behalf of the company to a felony charge of obstructing a Coast Guard investigation and a misdemeanor charge of negligently discharging oil.

The oil discharge came from the cargo ship APL Guatemala when it was anchored in the Port of Long Beach in July 2001. The Coast Guard initially was notified after the crew observed an oil sheen on the water, which dissipated. However, the next day, the crew observed a fresh oil leak, and instead of notifying the National Response Center, they poured detergent into the water in an attempt to disperse and hide the spill, according to the Justice Department. In addition, the company hired a diver who observed oil flowing from the vessel. Company officials directed the diver to remove the oil, but to omit information from a report he filed about an oil leak.

U.S. District Judge Percy Anderson has scheduled an Oct. 23 sentencing hearing. Justice officials anticipate the judge will impose the terms of a plea agreement that includes three years probation for the company and a requirement it implement and fund an environmental management and compliance plan. In addition, the company agreed to commit no further violations of international agreements and to pay full restitution to the U.S. Environmental Protection Agency and the Coast Guard.

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