Wilmington, DE – International Petroleum Corporation (IPC) has been sentenced to a hefty $1.3 million fine and $2.2 million in restitution to the City of Wilmington following a protracted investigation into years of environmental violations, announced the U.S. Attorney’s Office for the District of Delaware on February 2nd, 2017. The corporation, which operated a used oil and hydrocarbon waste water processing facility at 505 South Market Street, systematically falsified environmental reports and improperly disposed of hazardous waste between 1992 and 2012.
According to court documents, IPC’s facility reprocessed petroleum for reuse by other companies, generating substantial wastewater as a byproduct. While subject to a Clean Water Act pretreatment permit regulating discharge into the city’s sewer system, IPC intentionally undermined the integrity of the monitoring process. Investigators found the company tampered with sampling methods and the monitoring device itself, submitting inaccurate data to authorities and the City of Wilmington. This deception allowed IPC to potentially exceed permitted pollutant levels, posing a risk to both public health and the environment.
Hazardous Waste Mishandling
The investigation further revealed that IPC violated the Resource Conservation and Recovery Act (RCRA) by illegally transporting hazardous waste. In June and July of 2012, the company shipped “tank bottoms” – sludge removed from storage tanks – to a disposal facility in South Carolina without the required hazardous waste manifest. These tank bottoms contained dangerous levels of benzene, barium, chromium, cadmium, lead, tetrachloroethene (PCE), and trichloroethene (TCE), all classifying the waste as RCRA-regulated hazardous material. The failure to properly manifest and track this waste created a significant risk of environmental contamination during transport and disposal.
Legal Ramifications and Prosecution
IPC pleaded guilty to charges stemming from violations of Title 18 U.S. Criminal Code, specifically 18 U.S.C. 371 (conspiracy), and 42 U.S.C. 6928 (d)(5)(A) pertaining to the RCRA. U.S. Attorney Charles M. Oberly III emphasized the severity of the offenses, stating that “industrial wastewater can pose serious threats to public health and the environment…companies must handle hazardous waste properly.” The substantial restitution ordered is intended to compensate the City of Wilmington for costs incurred due to IPC’s negligence and deceit. The case was prosecuted by Special Assistant U.S. Attorney Martin Harrell of the EPA Region 3, and Assistant U.S. Attorney Edmond Falgowski.
Investigation and Cooperation
The EPA’s Criminal Investigation Division spearheaded the investigation, with crucial assistance from the City of Wilmington Department of Public Works and the Delaware Department of Natural Resources and Environmental Control (DNREC). While the crimes occurred prior to its acquisition of the Wilmington plant, IPC’s current parent company reportedly cooperated fully with the investigation. This cooperation, however, did not mitigate the severity of the penalties imposed.
Key Facts
- Defendant: International Petroleum Corporation
- Location: Wilmington, Delaware
- Years of Violation: 1992 – 2012
- Statutes Violated: 18 U.S.C. 371, 42 U.S.C. 6928 (d)(5)(A)
- Penalties: $1.3 million criminal fine and $2.2 million restitution to the City of Wilmington.
- Waste Involved: Used oil, hydrocarbon-containing wastewater, hazardous sludge containing benzene, barium, chromium, cadmium, lead, PCE, and TCE.
- Investigating Agencies: EPA Criminal Investigation Division, City of Wilmington Dept. of Public Works, DNREC.
This case serves as a stark reminder of the EPA’s commitment to aggressively pursuing and prosecuting environmental crimes, particularly in areas deemed environmental justice concerns. The penalties levied against IPC underscore the serious consequences faced by companies who prioritize profit over environmental compliance and public safety.
Source: EPA ECHO Enforcement Case Database
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