OLANCHA, CA – Crystal Geyser Natural Alpine Spring Water producer, CG Roxane LLC, has been sentenced to three years of probation and ordered to pay $5 million in criminal fines after pleading guilty to illegally storing and transporting hazardous waste at its Olancha, California facility. The case, brought forth by federal and state environmental agencies, reveals a pattern of negligent handling of arsenic-contaminated wastewater generated during the company’s water filtration process.
For approximately fifteen years, CG Roxane discharged wastewater – a byproduct of removing naturally occurring arsenic from its spring water – into an unlined pond dubbed “the Arsenic Pond.” Sampling in 2013 and 2014 by the Lahontan Regional Water Quality Control Board revealed arsenic concentrations exceeding eight times the federal hazardous waste limit. Further testing by both the California Department of Toxic Substances Control (DTSC) and CG Roxane’s own laboratory consistently confirmed dangerously high levels of the toxic substance, posing a potential threat to groundwater and local wildlife.
Despite being informed of the violations in 2015 by DTSC officials, CG Roxane allegedly failed to properly manage the hazardous waste. Instead, the company contracted with United Pumping Services, Inc. and United Storm Water, Inc., both based in City of Industry, to remove the wastewater. However, court documents indicate the transport was conducted without the required hazardous waste manifests and without proper identification of the material. The contaminated water was ultimately delivered to a Southern California facility *not* authorized to receive or treat hazardous waste, resulting in the illegal discharge of over 23,000 gallons into a sewer system.
The investigation, led by federal and state authorities, focused specifically on the handling, storage, and transportation of the wastewater. Authorities were careful to note that the probe did *not* involve the safety or quality of the bottled water itself, but rather the company’s environmental compliance. The case highlights the dangers of improper hazardous waste disposal, even for companies seemingly focused on providing a natural resource.
Legal Ramifications
CG Roxane LLC pleaded guilty to one count of unlawful storage of hazardous waste and one count of unlawful transportation of hazardous material, violating statutes including 33 U.S.C. 1319(c)(1)(A), 33 U.S.C. 1317(d), 49 U.S.C. 5124, and 42 U.S.C. 6928(d)(2) – encompassing provisions of the Clean Water Act and the Resource Conservation and Recovery Act. The $5 million criminal fine, combined with the three-year probation period, represents a significant penalty for the environmental violations.
United Pumping Services, Inc. and United Storm Water, Inc. previously pleaded guilty to four counts of negligently violating pretreatment program requirements and were sentenced to pay a combined criminal fine of $375,000 on July 29, 2020. As part of its sentence, CG Roxane is also required to implement a comprehensive compliance program within 90 days, including annual audits conducted by a qualified third-party environmental auditor, to ensure future adherence to environmental regulations. This aims to prevent similar incidents and safeguard the environment from potentially harmful practices.
Key Facts
- Defendant: CG Roxane LLC (Crystal Geyser)
- Location: Olancha, California
- Crime: Illegal storage and transportation of hazardous waste (arsenic-contaminated wastewater)
- Years of Violation: Approximately 15 years (2005-2015)
- Hazardous Waste: Arsenic-contaminated wastewater from water filtration process
- Illegal Disposal: Discharge of over 23,000 gallons of wastewater into an unauthorized sewer system.
- Penalties: $5 million criminal fine for CG Roxane, $375,000 for transport companies, 3 years probation for CG Roxane, and mandatory compliance program.
Source: EPA ECHO Enforcement Case Database
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