Randall Sicard Reis, Hazardous Waste Storage Violation, Montana 2007

Butte, Montana – Randall Sicard Reis, former Chairman of the Board and CEO of MR3, a now-defunct zinc sulfate production facility, has completed a two-year probationary sentence for illegally storing hazardous waste. The case, stemming from activities in 2007, highlights the ongoing struggle to enforce environmental regulations even as companies shutter their doors.

According to court documents, Reis knowingly stored substantial quantities of hazardous waste at the MR3 facility in Butte without the required permits. The waste included filter cake contaminated with lead, and approximately 5,000 gallons of corrosive liquid containing cadmium – both classified as hazardous under federal law. Investigators discovered the improperly stored materials during a routine inspection, triggering a criminal investigation by the Environmental Protection Agency (EPA).

Reis was initially indicted on three counts of violating the Resource Conservation and Recovery Act (RCRA) on April 4, 2007. Specifically, the charges centered around 42 U.S.C. §6928(d)(2)(A), which prohibits the knowing treatment, storage, or disposal of hazardous waste without a valid permit. The EPA argued that Reis, as the top executive of MR3, was directly responsible for ensuring the facility complied with environmental regulations.

Following a lengthy legal battle, Reis was convicted on two of the three counts on September 17, 2008. A jury acquitted him on the third charge, suggesting some ambiguity regarding the extent of his direct knowledge of all waste storage practices. While the corporation, MR3, was also initially charged, those charges were dropped due to the company’s defunct status, leaving Reis as the sole accountable party.

On April 14, 2009, Reis received a sentence of 24 months probation. Notably, no financial fine was imposed, a decision that has drawn criticism from environmental advocacy groups who argue that a financial penalty would have served as a stronger deterrent. The lack of a fine, coupled with the company’s collapse, raises questions about the effectiveness of pursuing criminal charges against individuals when the corporate entity is unable to contribute to remediation or restitution.

The case serves as a reminder that individuals holding leadership positions within companies handling hazardous materials can be held personally liable for environmental crimes, even if the company itself ceases to exist. While the sentence in this case was relatively lenient, it underscores the EPA’s commitment to pursuing criminal enforcement actions against those who knowingly endanger public health and the environment.

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Key Facts

Defendant: Randall Sicard Reis
Location: Butte, Montana
Crime: Illegal storage of hazardous waste
Statute Violated: 42 U.S.C. §6928(d)(2)(A) – Resource Conservation and Recovery Act (RCRA)
Hazardous Waste: Lead-contaminated filter cake and corrosive liquid containing cadmium. Approximately 5,000 gallons of liquid waste.
Sentence: 24 months probation; no fine imposed.
Company Status: MR3 is now defunct.

Source: EPA ECHO Enforcement Case Database

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