OEA, Inc., Hazardous Waste Crime, CO 1995

Denver, CO – OEA, Inc., a Colorado manufacturer responsible for a significant portion of the world’s airbag initiator supply, was slapped with a $5.25 million fine in December 1994 following a guilty plea to federal hazardous waste violations. The case, stemming from practices at the company’s facility east of Denver, revealed a pattern of illegal handling of dangerous materials, resulting in multiple injuries to workers.

The Environmental Protection Agency (EPA) investigation uncovered that OEA, Inc. routinely generated hazardous waste during the production of airbag initiators. This waste included a volatile mix of hexane and acetone combined with zirconium potassium perchlorate (ZPP) – a highly explosive compound – and defective initiators also containing ZPP. Rather than adhering to stringent environmental regulations, OEA, Inc. engaged in a series of unlawful practices to manage this hazardous byproduct.

According to court documents, the company illegally transported hazardous waste off-site for treatment, circumventing proper disposal protocols. More alarmingly, OEA, Inc. resorted to open burning of the waste on-site, a practice explicitly prohibited without the necessary permits. Furthermore, the facility illegally stored hazardous waste, creating a volatile and unsafe environment. These actions culminated in a series of explosions during 1994, causing severe burns and injuries to five employees.

The charges against OEA, Inc. centered on violations of the Resource Conservation and Recovery Act (RCRA), specifically 42 U.S.C. §6928(d)(1), which prohibits the illegal treatment, storage, and disposal of hazardous waste. The company was initially charged with one count under this statute on March 28, 1994, and swiftly entered a guilty plea on April 28, 1994.

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Financial Penalties & Distribution

The sentencing, handed down on December 13, 1994, reflected the severity of the violations and the resulting harm. The $5.25 million fine was allocated as follows: $1.5 million went to the U.S. Treasury, $3 million was directed to the Hazardous Waste Remediation Program, $800,000 was awarded to the Colorado Department of Public Health and Environment, and $300,000 was earmarked for local hazardous waste programs. The substantial financial penalty aimed to deter future violations and fund crucial environmental cleanup efforts.

Key Facts

Defendant: OEA, Inc.
Location: East of Denver, Colorado
Industry: Airbag Initiator Manufacturing (60% of global supply)
Hazardous Waste: Hexane, acetone, zirconium potassium perchlorate (ZPP), defective initiators
Violations: Illegal transportation, on-site open burning, and improper storage of hazardous waste.
Statute Violated: 42 U.S.C. §6928(d)(1) – Resource Conservation and Recovery Act (RCRA)
Injuries: Five workers suffered serious injuries and burns from explosions.
Fine: $5.25 million

The OEA, Inc. case serves as a stark reminder of the potential dangers associated with improper hazardous waste management and the critical importance of adhering to environmental regulations. The injuries sustained by workers underscore the human cost of prioritizing profit over safety and compliance.

Source: EPA ECHO Enforcement Case Database

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