BILLINGS, MT – Kenneth Ward, a Montana man, was sentenced in October 2020 for defrauding a Colorado-based oil and gas operator by illegally dumping radioactive waste. Ward accepted payment for the proper disposal of contaminated filter socks, but instead abandoned them at an abandoned gas station in Noonan, North Dakota. The case, prosecuted in the District of Montana, highlights the risks associated with improper handling of byproducts from oil and gas extraction.
Between 2011 and 2014, Ward contracted with Zenith Produced Water, LLC, to incinerate and dispose of the filter socks. These tubular nets are crucial in collecting pollutants and naturally occurring radioactive materials (NORMs) found in saltwater produced during oil drilling operations. Zenith paid Ward $9,977 with the understanding that the waste would be handled according to environmental regulations. However, investigators discovered Ward deliberately circumvented these regulations, choosing the cheaper – and illegal – option of dumping the hazardous materials.
The scheme unraveled after authorities were alerted to the abandoned waste at the North Dakota gas station. An investigation revealed Ward had cashed checks related to the disposal contract within Montana, establishing jurisdiction for the federal prosecution. While the dumping occurred in North Dakota, the financial transactions tied to the crime brought the case before a Montana court. The Environmental Protection Agency (EPA) played a key role in the investigation, working with federal prosecutors to build the case against Ward.
Ward ultimately pleaded guilty to one count of wire fraud, a violation of Title 18 U.S. Criminal Code, specifically 18 U.S.C. 1343. This federal statute prohibits schemes to defraud through interstate wire communications. The prosecution successfully argued that Ward used wire communications – specifically, the receipt of payments – as part of his fraudulent scheme.
Sentencing and Restitution
On October 22, 2020, the court sentenced Ward to four months of incarceration, deemed time served, followed by a two-year period of supervised release. In addition to the jail time, Ward was ordered to pay a $2,500 fine. Crucially, the court also mandated $9,977 in restitution to cover the costs of cleaning up the illegally dumped filter socks. This restitution aims to reimburse Zenith Produced Water, LLC, and any relevant environmental agencies for the expenses incurred in remediating the site.
Key Facts
- Defendant: Kenneth Ward
- Location of Dumping: Abandoned gas station, Noonan, North Dakota
- Victim: Zenith Produced Water, LLC
- Waste Material: Filter socks containing pollutants and radioactive materials from oil drilling.
- Crime: Wire Fraud (18 U.S.C. 1343)
- Sentence: 4 months (time served), 2 years supervised release, $2,500 fine, $9,977 restitution
This case serves as a stark reminder of the potential environmental and criminal consequences associated with the improper disposal of hazardous waste from the energy sector. Authorities continue to emphasize the importance of adhering to environmental regulations and the diligent tracking of radioactive materials to protect public health and the environment.
Source: EPA ECHO Enforcement Case Database
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