Randy Jones, Pipeline Safety Violations and False Statements, Wisconsin 2014

Milwaukee, WI – A former corrosion coordinator for Shell Pipeline Company L.P. has been sentenced for deliberately neglecting pipeline safety regulations, leading to a significant jet fuel spill at Milwaukee’s General Mitchell International Airport in 2012. Randy Jones, 44, of Louisiana, pleaded guilty in November 2014 to violations of federal pipeline safety laws and for making false statements to federal regulators.

The case, investigated by a multi-agency task force including the EPA Criminal Investigation Division, the U.S. Coast Guard, the Department of Transportation Office of Inspector General, and the FBI, revealed a pattern of negligence stretching throughout 2011. Jones, responsible for monitoring Shell pipelines servicing both Mitchell and Chicago O’Hare airports, knowingly failed to conduct required bi-monthly voltage readings and annual surveys designed to detect and prevent corrosion on a critical jet fuel pipeline.

The failure to perform these essential safety checks ultimately resulted in the discovery of a hole in the pipeline in January 2012. Approximately 9,000 gallons of jet fuel leaked onto airport property, contaminating soil, entering nearby Wilson Creek, and even melting asphalt. The subsequent cleanup and response effort totaled a staggering $19.3 million, a cost Jones has now been ordered to fully reimburse.

According to court documents, Jones was aware of an impending audit by the Pipeline and Hazardous Material Safety Administration (PHMSA) in December 2011. Rather than admitting to the lapsed safety protocols, he falsified data, submitting fraudulent reports to PHMSA indicating that the required tests *had* been conducted. This deliberate attempt to deceive regulators compounded the severity of his initial negligence.

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Key Facts

Defendant: Randy Jones, 44, of Louisiana
Location: General Mitchell International Airport, Milwaukee, Wisconsin
Crime: Pipeline safety violations and false statements
Laws Violated: 18 U.S.C. 1001 (false statements) and 49 U.S.C. 60123 (a) (Pipeline Safety Act violations)
Spill Amount: Approximately 9,000 gallons of jet fuel
Cleanup Cost: $19,337,785
Sentence: 10 years of probation and $19,337,785 in restitution.

The Pipeline Safety Act mandates that buried or submerged metal pipelines be protected from corrosion through the use of rectifiers, devices that apply a negative current to the surrounding soil. Consistent monitoring of these systems, as Jones was tasked with, is crucial to ensuring the integrity of the pipeline and preventing potentially catastrophic failures. Prosecutors emphasized that Jones’s actions directly undermined these safety measures.

On April 30, 2015, Jones received a sentence of ten years’ probation and was ordered to pay full restitution of $19,337,785. The case serves as a stark reminder of the critical importance of adherence to pipeline safety regulations and the serious consequences awaiting those who prioritize negligence or deceit over public safety and environmental protection. The prosecution was handled by Jennifer A. Whitfield of the Department of Justice’s Environmental Crimes Section and Tracy M. Johnson of the U.S. Attorney’s Office for the Eastern District of Wisconsin.

Source: EPA ECHO Enforcement Case Database

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