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Delaware Co. Guilty in Oil Disaster
A Delaware company has pleaded guilty to negligently discharging oil into the bayous of Jefferson Parish, Louisiana, in a federal court in the Eastern District of Louisiana.
Cedyco Corporation, headquartered in Houston, pleaded guilty to three counts of violating the Federal Water Pollution Control Act (Clean Water Act). The Clean Water Act makes it a misdemeanor to negligently discharge harmful quantities of oil into navigable waters of the United States.
According to the plea agreement, Cedyco agreed to pay a criminal fine of $557,000. All of the fine money will be directed to the Oil Spill Liability Trust Fund to aid the U.S. Coast Guard in responding to future oil spills. Additionally, Cedyco also agreed to cease operations and divest itself of all hydrocarbon business interests in the state of Louisiana.
“Cedyco is being held accountable for its neglectful operations and poor management, which repeatedly resulted in illegal discharges of oil into the sensitive Louisiana bayou,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division at the Department of Justice.
The investigation revealed that Cedyco owned and operated several hydrocarbon facilities, including fixed barges, platforms and wells, in the brackish bayous of South Louisiana. As a general matter, Cedyco’s facilities were poorly maintained and operated without plans and permits required by regulations issued by the Louisiana Department of Environmental Quality (LDEQ) as administrator of the federal Clean Water Act.
The three facilities involved in the discharges are the tank battery known as the Bayou St. Denis facility, the production and storage facility known as the Bayou Dupont facility, and the production well adjacent to the Bayou Dupont facility known as Well #10. Each facility will be addressed in turn.
“DEQ and its partners are dedicated to policing and enforcing environmental laws. Today’s actions further illustrate that commitment,” said LDEQ Secretary Peggy Hatch.
Captain Peter Gautier, Commander of Coast Guard Sector New Orleans, praised the efforts of partner agencies and internal investigators for their tireless efforts in prosecuting the case.
Key Facts
- State: Delaware
- Category: Environmental Crime
- Source: DOJ Press Release ↗
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