PITTSBURGH, PA – Rockwater Northeast, LLC, a Pennsylvania-based water management company servicing the oil and gas industry, has been penalized for a widespread scheme to illegally modify diesel truck emissions systems. The company pleaded guilty to 31 counts of violating the Clean Air Act and Title 18 U.S. Criminal Code, revealing a deliberate effort to circumvent environmental regulations and deceive authorities.
Federal investigators uncovered evidence that Rockwater Northeast systematically tampered with the emissions controls on its fleet of 31 heavy-duty diesel trucks. The company installed “defeat devices” – sophisticated mechanisms designed to disable the trucks’ emissions diagnostic systems – allowing the vehicles to release significantly higher levels of pollutants into the atmosphere. This not only violated federal air quality standards but also presented a public health risk.
The scheme extended beyond simple tampering. Rockwater Northeast actively worked to conceal the modifications during mandatory Department of Transportation (DOT) safety inspections. By ensuring the trucks *appeared* to comply with emissions standards, the company continued operating the illegally modified vehicles, further exacerbating the environmental damage and gaining an unfair competitive advantage.
Corporate Accountability & Penalties
The fallout from the investigation didn’t stop with Rockwater Northeast. Select Energy Services, Inc., which acquired Rockwater Energy Solutions, Inc. (Rockwater Northeast’s parent company) in 2017, entered into a three-year non-prosecution agreement with the United States government. This agreement addressed an additional 29 trucks with similar illegal modifications owned by the predecessor company. As part of the agreement, Select Energy Services paid $2.3 million in monetary penalties.
While Select Energy Services cooperated with the investigation and implemented an environmental compliance program – including annual audits – the initial actions of Rockwater Northeast demonstrate a clear disregard for environmental laws. The government’s decision to pursue a non-prosecution agreement with Select Energy Services appears to hinge on their post-acquisition cooperation and commitment to future compliance.
Individual Sentences Handed Down
Beyond the corporate penalties, several individuals connected to the scheme faced consequences for their roles in the fraud. Gavin Rexer, Joseph Powell, and John Joseph each received 12 months of probation and were ordered to perform 50 hours of community service. Dennis Paulhamus was sentenced to 12 months of probation and a $15,000 fine, while Timothy Sweitzer received 12 months of probation and a $10,000 fine. These sentences, while relatively light, signal a commitment to holding individuals accountable for environmental crimes.
Key Facts
- Defendant: Rockwater Northeast, LLC
- State: Pennsylvania
- Year: 2021
- Laws Violated: 42 U.S.C. 7413(c)(2)(C) (Clean Air Act), 18 U.S.C. 371 (Conspiracy)
- Corporate Fine (Rockwater Northeast): $2 million + $12,400 in special assessments
- Corporate Penalty (Select Energy Services): $2.3 million (non-prosecution agreement)
- Number of Trucks Involved: 60 (31 by Rockwater Northeast, 29 by Rockwater Energy Solutions)
- Method of Fraud: Installation of “defeat devices” to bypass emissions controls and falsification of DOT safety inspections.
This case serves as a stark reminder that environmental regulations are not merely suggestions, but legally binding requirements. The EPA’s criminal enforcement efforts are crucial in protecting public health and ensuring a level playing field for businesses that prioritize environmental responsibility.
Source: EPA ECHO Enforcement Case Database
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