Anchorage, AK – Doyon Drilling, Inc. faced federal charges and substantial penalties after illegally disposing of hazardous waste at a British Petroleum Exploration Alaska (BPXA) facility on Endicott Island, off the North Slope of Alaska. The scheme, spanning from 1991 to 1995, involved pumping dangerous materials down the annuli of production wells, effectively using the wells as unregulated waste dumps. The Environmental Protection Agency (EPA) brought the case to light, leading to a complex series of indictments and guilty pleas.
According to court documents, Doyon Drilling employees were specifically instructed to mix hazardous waste with drilling muds before injecting them into the subsurface formation. This practice bypassed established environmental regulations designed to protect the fragile Arctic ecosystem and potentially contaminated groundwater resources. The EPA’s investigation stemmed from information provided by BPXA itself, highlighting a potential internal awareness of the illicit activity.
Timeline of Legal Action
The legal fallout began on April 30, 1998, with the indictment of Doyon Drilling, along with company representatives Michael Krupa and Allen Sinclair, on three counts of violating the Clean Water Act (33 U.S.C. 1321). All three quickly pled guilty. Simultaneously, Ben Shafsky was indicted on charges of misprision of a felony (18 U.S.C. 4), accused of concealing knowledge of the illegal waste disposal. Shafsky also entered a guilty plea in June of the same year.
Sentencing occurred throughout late 1998 and early 1999. Doyon Drilling received six months of probation and a hefty $3 million in federal fines. Allen Sinclair was handed a four-month prison sentence, followed by 60 months of probation and a $25,000 fine. Ben Shafsky received 60 months probation and a $25,000 fine. Michael Krupa faced a 12-month incarceration, plus an additional 12 months of probation, and a $25,000 fine. The penalties demonstrate the seriousness with which federal authorities viewed the environmental crimes.
The investigation didn’t stop with Doyon Drilling and its employees. On September 23, 1999, BPXA was charged with violating the reporting requirements of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) (42 U.S.C. 9603). BPXA pled guilty to these charges on February 1, 2000, receiving 60 months probation and a $500,000 fine. Crucially, BPXA was also mandated to implement a nationwide environmental management system, estimated to cost around $15 million, aimed at preventing future violations.
Key Facts
- Defendant: Doyon Drilling, Inc.
- Location: Endicott Island, Alaska
- Years of Activity: 1991 – 1995
- Statutes Violated: Resource Conservation and Recovery Act, Clean Water Act, CERCLA, Misprision of Felony
- Penalties: Over $3.5 million in fines, prison sentences for individuals, and mandated environmental improvements.
- Method of Disposal: Hazardous waste was mixed with drilling muds and injected into production wells.
This case serves as a stark reminder of the potential for environmental damage in remote and sensitive areas like the Alaskan North Slope. The coordinated legal action against both the drilling contractor and the facility operator underscores the importance of corporate responsibility and strict adherence to environmental regulations, even in challenging operating environments. The substantial fines and mandated improvements reflect a commitment to both punishing wrongdoing and preventing future incidents.
Source: EPA ECHO Enforcement Case Database
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