Chemical Commodities, Haz Waste Violations, KS 1990

Olathe, Kansas – Chemical Commodities, Inc., a chemical brokering business, was shuttered and faced substantial financial penalties following a guilty plea to federal hazardous waste violations in May 1990. The case, stemming from events in late 1988, highlighted significant environmental and public safety risks associated with improper handling and disposal of dangerous materials.

The investigation began after a truck transporting hazardous waste caught fire in a Kansas City neighborhood in December 1988, necessitating the evacuation of nearby residents. This incident quickly drew the attention of the Environmental Protection Agency (EPA), who launched a probe into the operations of Chemical Commodities, the company responsible for the waste.

Federal prosecutors initially indicted the company and an individual – referred to as “Individual One” in court documents – on three counts related to the unlawful handling of methyl bromide, a highly toxic substance. The charges included knowingly treating and disposing of hazardous waste without a permit, transporting hazardous waste without a proper manifest, and knowingly endangering employees through the illegal disposal practices. However, in a plea agreement reached in May 1990, the charges against Individual One were dropped, and Chemical Commodities pleaded guilty to two counts of violating the Resource Conservation and Recovery Act (RCRA).

The company admitted to unlawfully treating, storing, and disposing of methyl bromide without the necessary permits and in violation of regulations outlined in 40 CFR Part 261. The EPA’s investigation revealed a pattern of negligence in the company’s handling of hazardous materials, posing a direct threat to both the environment and public health. As part of the sentencing, the court ordered Chemical Commodities to immediately cease all business operations and undergo a complete liquidation, overseen by an EPA-approved contractor.

The financial penalties levied against Chemical Commodities were substantial. The company was fined $505,760 – $5,760 designated for probation supervision and a $200 special assessment. However, the execution of the $500,000 portion of the fine was stayed, contingent upon the company fully covering all costs associated with the liquidation, cleanup, and proper disposal of the remaining hazardous waste. The company was also placed on a 60-month probationary period to ensure compliance with the court’s orders.

This case serves as a stark reminder of the serious consequences for companies that prioritize profit over environmental responsibility and public safety. The EPA’s enforcement of RCRA continues to be crucial in protecting communities from the dangers posed by improper hazardous waste management. The complete shutdown of Chemical Commodities underscores the agency’s commitment to holding violators accountable and ensuring the safe handling of dangerous substances.

Key Facts

Defendant: Chemical Commodities, Inc.
Location: Olathe, Kansas
Incident Date: December 1988 (truck fire triggering investigation)
Statutes Violated: 42 U.S.C. 6928(d)(2)(A) – Unpermitted treatment, storage, and disposal of hazardous waste.
Statutes Violated: 42 U.S.C. 6928(d)(5) – Transporting hazardous waste without a manifest.
Statutes Violated: 42 U.S.C. 6928(e) – Knowingly endangering employees.
Penalty: $505,760 fine (majority stayed contingent on cleanup costs), 60 months probation, and complete business liquidation.
Hazardous Waste: Methyl bromide

Source: EPA ECHO Enforcement Case Database

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