MALTA, MT – Milk River Cooperatives (MRC), owned by agricultural giant CHS Inc., has been sentenced to pay $500,000 in federal fines and $50,000 in community service to the Phillips County Rural Fire Department after failing to report a significant chemical release following a 2009 fire at its Malta, Montana facility. The case, prosecuted by the U.S. Attorney’s Office for the District of Montana, highlights a critical failure to adhere to environmental regulations designed to protect public health and safety.
The fire, which erupted at approximately 1:30 a.m. on November 21, 2009, quickly engulfed stored herbicides, including around 1,800 pounds of materials containing the dangerous chemical 2,4-D. While the Phillips County Volunteer Fire Department responded promptly, the MRC facility manager, aware of the hazardous materials present, requested firefighters avoid using water, fearing it would spread the chemicals. The manager observed barrels of 2,4-D ablaze, and the fire chief noted significant chemical runoff.
Despite the clear danger, CHS Inc. officials allegedly downplayed the severity of the incident to state and federal authorities. The company’s general manager contacted CHS’s Environmental, Health and Safety Manager, who then reported the fire to Montana Disaster and Emergency Services (MDES). However, the MDES planner was led to believe the fire was small, contained, and posed no significant risk, crucially omitting the fact that chemicals had been released into the environment. Critically, no notification was made to the National Response Center or the EPA Emergency Response Center, a direct violation of federal law.
Environmental Impact and Aftermath
Following the fire, an investigation revealed significant environmental contamination. Fire suppression efforts generated 6,750 gallons of chemical-laden wastewater, and approximately 130 cubic yards of 2,4-D contaminated soil had to be excavated and properly disposed of. Adding to concerns, fourteen calves located downwind of the facility perished from a lung ailment, with a veterinarian unable to rule out toxic smoke from the fire as a contributing factor. CHS Inc. ultimately paid market value for the dead calves and purchased an additional 473 head of cattle potentially exposed to the smoke.
Legal Ramifications
MRC pled guilty to violating the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), specifically 42 U.S.C. 9603(b), which mandates immediate notification of unpermitted releases of hazardous substances. The sentencing, handed down on January 22, 2013, included the $500,000 federal fine, the $50,000 community service payment to the Phillips County Rural Fire Department, and a $400 special assessment. U.S. Attorney Michael W. Cotter emphasized the importance of accurate and timely reporting of chemical spills, stating the office will continue to prosecute such failures to safeguard Montana’s public health and environment.
EPA’s Stance
Jeffrey Martinez, Special Agent in Charge of EPA’s criminal enforcement program in Montana, echoed these sentiments, stating, “Complete, accurate and honest reporting is essential in order to protect the public when harmful toxins are released from facilities.” He stressed that the sentence sends a clear message that such conduct will not be tolerated. The investigation was conducted by the Environmental Protection Agency’s Criminal Investigation Division.
Key Facts
- Defendant: Milk River Cooperatives (owned by CHS Inc.)
- Location: Malta, Montana
- Date of Incident: November 21, 2009
- Chemical Involved: Approximately 1,800 pounds of materials containing 2,4-D
- Statute Violated: 42 U.S.C. 9603(b) – Failure to notify under CERCLA
- Penalties: $500,000 federal fine, $50,000 community service to Phillips County Rural Fire Department, $400 special assessment
- Environmental Impact: Contaminated soil and water, potential livestock deaths
Source: EPA ECHO Enforcement Case Database
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