Pelican Refining Company LLC, Clean Air Act Violations, Louisiana 2012

Lake Charles, Louisiana – Pelican Refining Company, LLC, has been sentenced following a protracted investigation into egregious violations of the Clean Air Act and obstruction of justice, culminating in a $12 million penalty – the largest of its kind ever levied in Louisiana for environmental crimes. The case, spanning several years and involving multiple guilty pleas from company officials, reveals a pattern of criminal negligence and deliberate deception regarding the operation of its Lake Charles refinery.

The investigation, initiated after a 2006 inspection by the Louisiana Department of Environmental Quality (LDEQ) and the EPA’s Criminal Investigation Division, uncovered a shocking disregard for safety and environmental regulations. Inspectors found numerous unsafe operating conditions, stemming from a systemic lack of investment in basic environmental controls. Remarkably, Pelican operated without a dedicated environmental department, manager, or even a budget allocated for environmental compliance.

Court documents detail a litany of specific violations. Critical pollution control equipment was either malfunctioning, poorly maintained, improperly installed, or never properly placed into service. Perhaps most alarmingly, employees routinely used an emergency flare gun to relight the refinery’s flare tower – designed to safely burn off toxic and explosive gases – because the automated pilot light was consistently failing. This practice created an extremely hazardous situation, relying on manual intervention to prevent potentially catastrophic incidents. Further compounding the danger, sour crude oil was stored in a tank with a compromised roof, and a crucial caustic scrubber designed to remove hydrogen sulfide was bypassed altogether.

The company’s deception extended beyond operational failures. Pelican knowingly submitted false deviation reports to the LDEQ, attempting to conceal the extent of its non-compliance. Furthermore, the refinery’s continuous emissions monitoring system (CEMS), intended to accurately measure hydrogen sulfide levels, was not functioning properly, masking the true extent of air pollution released into the surrounding environment. Investigators also discovered false information provided to state agencies regarding laboratory testing of asphalt, indicating a broader pattern of dishonesty.

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Key Facts

Defendant: Pelican Refining Company, LLC
Location: Lake Charles, Louisiana
Laws Violated: Clean Air Act (42 U.S.C. 7661a), Title 18 U.S. Criminal Code (18 U.S.C. 1519, 42 U.S.C. 7413(c)(4))
Penalty: $10 million criminal fine + $2 million in community service (environmental projects)
Individual Convictions: Byron Hamilton (VP) and Mike LeBleu (Asphalt Manager) both pleaded guilty to negligent endangerment charges.
Compliance Requirements: Pelican is subject to independent quarterly audits and court-appointed monitoring to ensure future compliance.

The U.S. District Court, under Judge Richard T. Haik Sr., sentenced Pelican to the substantial financial penalty on December 15, 2011. Prior to the company’s sentencing, two key figures were held accountable for their roles in the criminal negligence. Byron Hamilton, the vice president overseeing operations, pleaded guilty to negligently placing persons in imminent danger and received a one-day incarceration, 12 months of supervised release, and a $5,000 fine. Mike LeBleu, the former asphalt facilities manager, also pleaded guilty to a similar charge, receiving a one-day sentence, 12 months probation, and a $4,000 fine. The investigation was a collaborative effort between the EPA Criminal Investigation Division, the Louisiana State Police, and the LDEQ, with prosecution led by the Department of Justice’s Environment and Natural Resources Division.

This case serves as a stark reminder of the serious consequences facing companies that prioritize profit over public health and environmental safety. The substantial fine and stringent compliance requirements imposed on Pelican Refining Company underscore the federal government’s commitment to vigorously prosecuting environmental crimes and holding polluters accountable for their actions.

Source: EPA ECHO Enforcement Case Database

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