Kelly Steen, Hazmat Fraud, Montana 2015

Billings, MT – A Montana truck driver has been sentenced for knowingly mislabeling a highly flammable substance as non-hazardous, a deception that led to a significant fire and injuries at a processing facility. Kelly Steen, of Baker, Montana, pleaded guilty in April 2015 to violating the Hazardous Material Transportation Act and was sentenced in August of the same year.

The case stems from an incident on December 29, 2012, when Steen, driving for Woody’s Trucking, transported natural gas condensate – commonly known as “drip gas” – from a pipeline station near Watford City, North Dakota, to Custom Carbon Processing, Inc. (CCP) in Wibaux, Montana. While the cargo was actually the dangerous drip gas, the accompanying bill of lading falsely identified it as “slop oil and water,” a non-hazardous substance. This deliberate misrepresentation allowed Steen to avoid adhering to strict regulations governing the transportation of flammable liquids, including proper placarding of the vehicle.

The deception was exposed when Steen began unloading the tank at CCP. A fire immediately ignited, injuring three employees. Firefighters battled the blaze for eight grueling days before determining the tank’s contents were, in fact, highly flammable drip gas, not the benign “slop oil and water” listed on the paperwork. Had the material been accurately labeled, CCP personnel would have been aware of the danger and implemented appropriate safety measures, potentially preventing the incident and subsequent injuries.

Federal investigators with the Department of Transportation’s Office of Inspector General uncovered the scheme, revealing a clear intent to circumvent safety protocols and potentially profit from reduced transportation costs associated with handling non-hazardous materials. The investigation revealed the mislabeling wasn’t a clerical error, but a calculated attempt to mislead authorities and those handling the shipment.

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Legal Ramifications

Steen was initially indicted in October 2014, charged with violating 49 U.S.C. 5124, a statute within the Hazardous Material Transportation Act that specifically addresses the false marking of hazardous materials shipments. He ultimately pleaded guilty to the charge. The court sentenced Steen to 36 months of probation and ordered him to pay a $2,000 fine. While Steen avoided imprisonment, the case serves as a stark warning regarding the severe consequences of endangering public safety through the fraudulent transportation of hazardous materials.

Key Facts

Defendant: Kelly Steen
Location: Baker, Montana; Watford City, North Dakota; Wibaux, Montana
Date of Incident: December 29, 2012
Hazardous Material: Natural gas condensate (drip gas)
False Label: “Slop oil and water”
Injuries: Three CCP employees injured in the resulting fire.
Statute Violated: 49 U.S.C. 5124
Penalty: 36 months probation, $2,000 fine

The incident underscores the critical importance of accurate labeling and adherence to hazardous material transportation regulations. The consequences of negligence or, in this case, deliberate deception can be catastrophic, putting lives and property at risk. The DOT-OIG continues to prioritize investigations into violations of these regulations, ensuring accountability for those who prioritize profit over safety.

Source: EPA ECHO Enforcement Case Database

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