CITGO pleads guilty for failing to maintain tanks, capacity



Sept. 18

CITGO Petroleum Corp. has pleaded guilty to violating the Clean Water Act and will pay a $13 million fine.

The company negligently failed to maintain storm water tanks and adequate storm water storage capacity at its Sulphur, La., petroleum refinery. As a result, some 53,000 barrels of oil discharged into the Indian Marais and Calcasieu Rivers following a heavy rain storm between June 19 and June 20, 2006.

It entered the guilty plea in the U.S. District Court for the Western District of Louisiana, Sept. 17. The $13 million fine is the largest ever for a criminal misdemeanor violation of the Clean Water Act, according to the U.S. Department of Justice. CITGO also will implement an Environmental Compliance Plan to prevent another spill.

The refinery converted its lagoon wastewater system into a tank system in 1994, but only built two tanks to handle excess waste water and storm water in order to trim costs, according to the Justice Department. As early as 1998, employees and outside contractors warned the company another tank was needed. CITGO did not approve the construction of a third tank until 2005.

The company also failed to properly maintain the tanks, which led to a build-up of waste oil, sludge and solids and contributed to the overflow.

Contact Waste News reporter Joe Truini at (330) 865-6166 or jtruini@crain.com

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