Tampa, FL – Kinder Morgan Port Manatee Terminal LLC was sentenced this week, culminating a case exposing years of falsified environmental reports and non-compliance with federal air quality standards. The company has agreed to pay $1 million in penalties and serve two years of probation for violations of the Clean Air Act, a case brought forth by the U.S. Environmental Protection Agency (EPA) and the Florida Department of Environmental Protection (FDEP).
The investigation revealed that between 2001 and 2008, Kinder Morgan’s baghouse systems – crucial for trapping particulate matter generated during the handling of dry bulk materials like fertilizer and cement clinker – were consistently in disrepair and often non-operational. Despite this, company managers knowingly submitted false certifications to the FDEP in 2006 and 2007, falsely claiming the systems were operating in accordance with regulations. Furthermore, from October 2006 through March 2008, Kinder Morgan failed to report the ongoing non-compliance to the FDEP, actively concealing the pollution from regulators.
Details of the Violation
The Kinder Morgan Port Manatee Terminal, a six-acre facility, receives and ships materials via railcar, truck, and ship. The loading and unloading of these granular materials inevitably creates particulate matter, a regulated air pollutant. The baghouse systems are designed to mitigate this pollution, but the EPA’s investigation uncovered a pattern of neglect and deliberate misrepresentation. This wasn’t a case of accidental malfunction; it was a calculated effort to avoid costly repairs and maintain operations while violating environmental regulations.
Legal Ramifications and Penalties
Kinder Morgan pleaded guilty to four counts of violating the Clean Air Act, specifically 42 U.S.C. 7413(c)(2)(A) (knowingly making false statements) and 42 U.S.C. 7413(c)(2)(B) (knowingly failing to notify or report). The sentence, handed down by U.S. District Judge James Moody, includes a $750,000 criminal fine and a $250,000 community service payment to the National Fish and Wildlife Foundation for remediation projects in Manatee County. In addition to the financial penalties, the company will be subject to a two-year probationary period and must implement a “stringent environmental compliance plan” to prevent future violations.
Parallel Enforcement Action
The federal case was supplemented by a parallel enforcement action from the FDEP, which resulted in a separate $331,000 civil penalty. The FDEP order mandates corrective actions including compliance stack testing on the repaired baghouses, repairs to transfer towers and conveyor systems, the creation of an employee training program, and the implementation of a management tracking system to ensure future adherence to environmental standards. This coordinated effort highlights the collaborative approach taken by federal and state agencies in prosecuting environmental crimes.
Statements from Authorities
U.S. Attorney A. Brian Albritton emphasized the importance of holding companies accountable for polluting activities, stating, “Protecting the quality of the air we breathe must be a priority.” Maureen O’Mara, Special Agent-in-Charge of EPA’s Office of Criminal Enforcement, added, “There is simply no excuse for this company to break our nation’s environmental laws… EPA will continue to vigorously investigate these types of crimes.”
Key Facts
- Defendant: Kinder Morgan Port Manatee Terminal LLC
- Crime: Violations of the Clean Air Act
- Location: Port Manatee, Florida
- Year: 2010
- Penalties: $1 million in fines and a two-year probationary period
- Statutes Violated: 42 U.S.C. 7413(c)(2)(A) & 42 U.S.C. 7413(c)(2)(B)
- Community Service: $250,000 payment to the National Fish and Wildlife Foundation
- Falsified Reports: Company managers knowingly submitted false certifications regarding the functionality of baghouse systems.
Assistant United States Attorney Cherie L. Krigsman prosecuted the case on behalf of the United States.
Source: EPA ECHO Enforcement Case Database
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