Cypress Bayou Industrial Painting, Misdemeanor Violation of the Clean Water Act, Texas 2009

Orange, Texas – Cypress Bayou Industrial Painting has been sentenced to three years of probation and a $60,000 federal fine after pleading guilty to a misdemeanor violation of the Clean Water Act, according to court documents unsealed this week. The conviction stems from the illegal dumping of hazardous materials into the Gulf of Mexico from the oil rig Midland, owned by Rowan Industries.

The investigation, which began several years ago, revealed that Cypress Bayou Industrial Painting, operating as a subcontractor for Rowan Industries since 2004, was directly responsible for the discharge of paint, rust chips, and sandblasting debris into the sensitive marine environment. Federal prosecutors argued the company knowingly failed to adhere to environmental regulations designed to protect the Gulf’s ecosystem.

The dumping occurred while Cypress Bayou was performing maintenance work on the Midland oil rig. Evidence presented to the court indicated a systemic disregard for proper waste disposal procedures. Rather than containing and properly removing the hazardous materials, the company allowed them to flow directly into the Gulf, impacting water quality and potentially harming marine life. The EPA’s criminal enforcement division led the investigation, working in conjunction with the Department of Justice.

This sentencing follows the earlier conviction of Rowan Industries, which was ordered to pay a significantly larger $7 million criminal fine for its role in the incident. Prosecutors emphasized that while Rowan bore the primary responsibility as the rig owner, Cypress Bayou’s actions were a key component of the illegal dumping scheme. The disparity in fines reflects the differing levels of involvement and the scale of each entity’s operation.

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Statutes Violated & Penalties

Cypress Bayou Industrial Painting was found guilty of violating the Clean Water Act (CWA). Specifically, the company pled guilty to a misdemeanor count relating to the unauthorized discharge of pollutants into navigable waters of the United States. The CWA prohibits the discharge of pollutants from a point source without a permit, and Cypress Bayou failed to comply with these regulations. The penalty included a $60,000 criminal fine and a three-year probationary period. As part of the probation, the company is required to implement a comprehensive employee training program focused on environmental compliance and proper waste management practices.

The EPA continues to prioritize enforcement actions against companies that prioritize profit over environmental protection. This case serves as a warning that subcontractors are not exempt from prosecution when they contribute to environmental crimes. Sources within the EPA suggest further investigations are ongoing related to waste disposal practices within the offshore oil industry.

Key Facts

Defendant: Cypress Bayou Industrial Painting
Location: Orange, Texas
Crime: Violation of the Clean Water Act
Year: 2009
Fine: $60,000
Probation: 36 months
Additional Penalty: Mandatory employee environmental training
Related Case: Rowan Industries previously fined $7 million for related offenses.

Source: EPA ECHO Enforcement Case Database

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