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Kinder Morgan Bulk Terminal, Ocean Dumping, Oregon 2008

Portland, OR – Kinder Morgan Bulk Terminal (KMBT) has been convicted of illegally dumping contaminated fertilizer into the Pacific Ocean, according to court documents unsealed this week. The incident, which occurred in 2003 but came to light through a multi-year investigation, highlights a deliberate attempt to circumvent environmental regulations and conceal substandard product.

The scheme involved 160 metric tons of potash—a potassium chloride substance used as a fertilizer—that became wet and unusable during handling at KMBT’s Terminal 5 facility in Portland. Rather than properly dispose of the off-specification material, the company’s night superintendent allegedly paid the captain of the bulk cargo vessel J/A Aladdin Dream II $1,250 to load the potash onto the ship’s deck. The intention? To dump the contaminated product into the ocean at a later date, far from prying eyes.

Federal investigators, spurred by initial reports in 2003, spent years tracking down the vessel and its former captain. The breakthrough came in August 2007 when authorities located the retired master of the J/A Aladdin Dream II in Japan. Crucially, the captain retained logbooks detailing the illegal dumping, and was able to pinpoint the exact location where the potash was discharged into the ocean, assisting Interpol in confirming the crime.

Legal Ramifications

On April 18, 2008, KMBT was formally charged with one count of violating the Marine Protection, Research, and Sanctuaries Act (33 U.S.C. 1401), commonly known as the Ocean Dumping Act. The Act prohibits the unauthorized dumping of materials into U.S. waters, aiming to protect marine ecosystems. The company subsequently pled guilty on August 20, 2008. The court sentenced KMBT to 24 months of probation and ordered the company to pay a total penalty of $240,000.

Environmental Remediation

A significant portion of the penalty—$84,000—will be directed toward environmental projects within Oregon. These funds will be administered through the National Fish and Wildlife Fund, via the Oregon Governor’s Fund for the Environment, focusing on restoration and protection of local ecosystems impacted by such practices. While the full extent of the environmental damage caused by the potash dumping remains unknown, authorities hope the remediation efforts will mitigate some of the harm.

GrimyTimes Investigation Continues

GrimyTimes is continuing to investigate whether this incident was an isolated occurrence at KMBT, or if it represents a pattern of disregard for environmental regulations. We are also examining the role of the Canadian corporation that supplied the potash, and whether they were aware of KMBT’s illegal activities. This case serves as a stark reminder of the potential for corporate malfeasance and the importance of vigilant environmental enforcement.

Key Facts

  • Defendant: Kinder Morgan Bulk Terminal (KMBT)
  • Crime: Illegal Ocean Dumping
  • Location: Portland, Oregon
  • Year: 2008 (dumping occurred in 2003)
  • Substance Dumped: 160 metric tons of contaminated potash
  • Statute Violated: Marine Protection, Research, and Sanctuaries Act (33 U.S.C. 1401)
  • Penalty: 24 months probation and $240,000 fine, with $84,000 allocated to Oregon environmental projects
  • Vessel Involved: J/A Aladdin Dream II

Source: EPA ECHO Enforcement Case Database

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