IPC Sentenced for Clean Water Act Crimes

International Petroleum Corporation of Delaware (IPC) was sentenced today to a $1,300,000 criminal fine and $2,200,000 in restitution to the City of Wilmington for conspiring to violate the Clean Water Act and illegally disposing of hazardous waste. U.S. District Court Judge Gregory M. Sleet handed down the sentence after the company admitted to a two-decade-long pattern of environmental deception and lawbreaking at its 505 South Market Street facility.

From 1992 to 2012, IPC operated a dual-process plant that reprocessed used oil and treated hydrocarbon-laced wastewater before selling the recovered petroleum. The facility was permitted under federal law to discharge treated wastewater into the city’s sewer system, but only if it adhered to strict pollutant limits and conducted monthly representative sampling. Instead, IPC systematically tampered with its monitoring methods and devices, submitting falsified data and concealing the true toxicity of its discharges.

The fraud extended beyond water violations. In June and July 2012, IPC shipped tank bottoms—sludge residue from its storage tanks—to South Carolina without a hazardous waste manifest, violating the Resource Conservation and Recovery Act (RCRA). Laboratory tests revealed the sludge contained dangerous levels of benzene, barium, chromium, cadmium, lead, tetrachloroethene (PCE), and trichloroethene (TCE)—all classified as RCRA-regulated hazardous substances.

“Industrial wastewater can pose serious threats to public health and the environment, so it’s imperative that companies honestly treat and dispose of it properly and sample and report pollutant concentrations honestly,” said U.S. Attorney for the District of Delaware Charles M. Oberly III. “Likewise, companies must handle hazardous waste properly to ensure its proper treatment and disposal. The Department of Justice and EPA are committed to protecting human health and the environment for all Americans through strong enforcement of environmental laws, especially in environmental justice areas. This conviction and sentence ensures that the defendant is held accountable with a criminal fine, and pays substantial restitution to the City of Wilmington.”

The investigation was led by the EPA’s Criminal Investigation Division, with support from the City of Wilmington Department of Public Works and the Delaware Department of Natural Resources and Environmental Control (DNREC) Solid & Hazardous Waste Management Section. While IPC itself admitted guilt, the current operations at the site are managed by its parent company, which purchased the plant after the criminal conduct ended and cooperated fully with authorities.

The case was prosecuted by Special Assistant U.S. Attorney Martin Harrell of EPA Region 3 and Assistant U.S. Attorney Edmond Falgowski of the U.S. Attorney’s Office for the District of Delaware. The $2.2 million in restitution will be directed to the City of Wilmington to address infrastructure and environmental impacts caused by the illegal discharges.