GARY, IN – A decade-long investigation culminated in penalties for Gary Products Company, Inc. and several individuals connected to Montgomery Tank Lines (MTL) following a significant hazardous waste spill in 1987. The case, brought forth by the Environmental Protection Agency (EPA), revealed a pattern of negligence and failure to report the release of approximately 5,000 pounds of hydrochloric acid (HCL) into the environment from MTL’s Gary, Indiana terminal.
The incident stemmed from 102,000 gallons of HCL acid temporarily stored at the MTL facility. Almost immediately upon delivery, the storage tankers began to leak, initiating an environmental hazard. Crucially, neither MTL nor its affiliated company, Gary Products – which manufactured cleaning soaps for MTL’s tank washes – promptly notified the appropriate federal authorities as required by law. William Keagel, President of Gary Products, was the first to face legal repercussions, initially pleading guilty in May 1991 to failing to report the spill under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
Indictments and Plea Bargains
In January 1992, a Grand Jury returned a four-count indictment against MTL, Vice President and Director Gordon Babbitt, Operations Manager Merv Bridges, tank wash manager Ronald Zega, and assistant Corey Niezgoda. Charges included violations of CERCLA (42 U.S.C. 9603(b) – failure to notify), 18 U.S.C. 2 (committing an offense against the United States), and the Clean Water Act (33 U.S.C. 1317 & 1319(c) – negligent violation). A series of guilty pleas followed. Keagel admitted to failure to notify and aiding and abetting. Babbitt confessed to failing to report the hazardous waste spill, while Zega, Bridges, and Niezgoda each pleaded guilty to violating the Clean Water Act.
Sentencing and Fines
The sentencing phase saw varying degrees of punishment. Keagel received a suspended 12-month sentence, a $50 special assessment, and 12 months of probation. MTL was fined $150,000 and ordered to pay a $200 special assessment. Individual penalties included a $125,000 fine for Babbitt, and $2,500 fines each for Zega, Bridges, and Niezgoda, along with $25 special assessments. The case highlighted the critical importance of adhering to environmental regulations and the legal ramifications of failing to report hazardous material releases.
A Pattern of Neglect?
While the immediate issue was the HCL spill, the case raised questions about oversight at the MTL facility. The tank wash operations, coupled with the storage of hazardous materials, presented inherent risks. The delayed reporting suggests a possible prioritization of cost-saving measures over environmental responsibility. The EPA’s enforcement action serves as a stark reminder that companies and individuals can be held accountable for environmental damage and non-compliance with federal laws.
Key Facts
- Defendant: Gary Products Company, Inc. and Montgomery Tank Lines (MTL)
- Location: Gary, Indiana
- Year: 1993 (regarding sentencing, spill occurred in 1987)
- Crime: Environmental violations, specifically failure to report a hazardous waste spill and negligent violation of the Clean Water Act.
- Hazardous Substance: Approximately 5,000 pounds of hydrochloric acid (HCL)
- Laws Violated: 33 U.S.C. 1319(c), 18 U.S.C. 2, 33 U.S.C. 1317(d), 42 U.S.C. 9603(b)
- Penalties: Fines totaling $177,750 across the company and individuals; suspended sentence and probation for one defendant.
Source: EPA ECHO Enforcement Case Database
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