Phoenix Operating Company, Pollution, LA 1999

New Orleans, LA – Phoenix Operating Company (POC) was sentenced in February 1999 following a guilty plea to knowingly violating the Clean Water Act, according to federal court records obtained by GrimyTimes. The Louisiana Department of Environmental Quality (LDEQ) and the Louisiana Department of Natural Resources (LDNR) initiated the investigation after observing a direct discharge of pollutants into a sensitive wetland area.

The incident, occurring in August 1998, centered around a temporary waste pit dug by POC employees during the cleaning of an Underground Injection Well (UIW). The pit was intended to hold wastewater generated during the cleaning process, which consisted of a mixture of saltwater and oil. While a vacuum truck was present to remove the waste, employees admitted to leaving a substantial amount – nearly half a pit’s volume – of oil-contaminated material behind.

Following a period of rainfall, the pit overflowed, and employees took matters into their own hands, rather than utilizing proper disposal methods. Instead of reporting the overflow or arranging for proper removal, POC personnel attempted to pump the oil and saltwater mixture directly into a natural drainage ditch leading to Caster Creek. Approximately 30 gallons of the oily waste entered the waterway before LDEQ and LDNR inspectors arrived on scene and halted the illegal discharge. The inspectors observed a visible sheen of black oil floating on top of the saltwater within the ditch.

The investigation revealed a blatant disregard for environmental regulations and proper waste management procedures. POC’s attempt to conceal the pollution by pumping the waste into a drainage ditch demonstrated a conscious effort to circumvent environmental safeguards. Sources close to the investigation indicate that the UIW cleaning was part of routine maintenance, making the decision to improperly dispose of the waste all the more concerning.

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Legal Ramifications

Phoenix Operating Company was charged with violating 33 U.S.C. 1319(c)(2)(A) of the Clean Water Act, specifically the provision prohibiting the knowing violation of effluent limitations. On October 5, 1998, the company entered a guilty plea. Four months later, on February 4, 1999, the court sentenced POC to 12 months of probation and ordered the payment of $9,000 in federal fines. While the penalties seem relatively modest by today’s standards, they reflect the severity of the offense at the time and serve as a warning to other companies operating in environmentally sensitive areas.

Key Facts

Defendant: Phoenix Operating Company
Location: Louisiana
Crime: Illegal discharge of oil and saltwater into a natural drainage ditch connected to Caster Creek.
Date of Incident: August 1998
Statute Violated: 33 U.S.C. 1319(c)(2)(A) – Clean Water Act
Penalty: 12 months probation and $9,000 in federal fines.
Circumstances: Waste pit overflowed after UIW cleaning; employees attempted to pump waste into a ditch.

GrimyTimes will continue to follow this case and investigate other instances of environmental crimes in Louisiana and across the nation. Readers with information regarding potential environmental violations are encouraged to contact us via our secure tip line.

Source: EPA ECHO Enforcement Case Database

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