Anchorage, AK – IMC Shipping Co. Pte. Ltd., a Singapore-based shipping company, has been sentenced to pay $10 million in fines and restitution following the disastrous grounding of the Motor Vessel Selendang Ayu in the Aleutian Islands in December 2004. The incident resulted in a significant oil spill, the loss of six crew members, and devastating impacts to a crucial migratory bird habitat.
The Selendang Ayu ran aground near Skan Bay, Unalaska Island, while attempting to make major engine repairs at sea rather than seeking safe harbor. The vessel was carrying 66,000 tons of soybeans, 424,000 gallons of bunker oil, and 18,000 gallons of diesel oil. Approximately 340,000 gallons of bunker fuel were discharged into the Bering Sea, creating an environmental catastrophe within the Alaska Maritime National Wildlife Refuge.
Federal prosecutors detailed how the company’s negligence directly contributed to the spill and the subsequent ecological damage. The U.S. Coast Guard launched a massive rescue operation, tragically losing a helicopter and six crew members when struck by a rogue wave during the severe storm. The incident prompted a comprehensive investigation by both the National Transportation Safety Board and federal law enforcement agencies.
Legal Ramifications and Penalties
On August 22, 2007, IMC Shipping Co. pleaded guilty to three federal counts: two violations of the Refuse Act (33 U.S.C. 407 and 411) for the illegal discharge of oil and soybeans, and one violation of the Migratory Bird Treaty Act (16 U.S.C. 703 and 707) for the deaths of thousands of migratory birds. The company received 36 months of probation, a $300 special assessment fee, and a $10 million fine. Of that amount, $9 million was paid at sentencing, with an additional $1 million held in abeyance for potential probation violations. A significant portion of the penalty – $4 million – was designated for community service, including $3 million for shipping hazard risk assessment and $1 million for the Alaska Maritime National Wildlife Refuge.
Environmental Impact and Restoration
The Alaska Maritime National Wildlife Refuge, a critical breeding ground for seabirds, suffered extensive damage. The oil spill coated approximately 20 miles of coastline and impacted thousands of birds, representing a significant blow to the region’s fragile ecosystem. The spill cleanup effort exceeded $100 million. The allocated funds are intended to support ongoing restoration efforts and improve safety measures for shipping traffic in the area.
Ongoing Investigations and Civil Liabilities
While IMC Shipping Co. has addressed its criminal culpability, the captain of the Selendang Ayu, Kailash Bhushan Singh, previously pleaded guilty to making false statements during the casualty investigation. Federal and state trustees continue to assess natural resource damages resulting from the spill. The Department of Justice emphasized that this plea agreement does not preclude any further civil liabilities IMC may face.
Key Facts
- Defendant: IMC Shipping Co. Pte. Ltd.
- Location: Skan Bay, Unalaska Island, Alaska
- Date of Incident: December 8, 2004
- Spilled Substances: Approximately 340,000 gallons of bunker oil and thousands of tons of soybeans
- Fatalities: Six crew members of the Selendang Ayu and six U.S. Coast Guard personnel
- Laws Violated: 16 U.S.C. 703, 33 U.S.C. 407, 16 U.S.C. 707, 33 U.S.C. 411
- Penalty: $10 million in fines and restitution, 36 months probation
The investigation was a joint effort by the U.S. Fish and Wildlife Service, the U.S. Environmental Protection Agency’s Criminal Investigation Division, the Federal Bureau of Investigations, and the U.S. Coast Guard, demonstrating a coordinated response to a complex environmental crime.
Source: EPA ECHO Enforcement Case Database
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