Stolthaven New Orleans, Environmental Crime, LA 2012

New Orleans, LA – Bulk storage company Stolthaven New Orleans LLC was sentenced in January 2012 following a guilty plea to a misdemeanor violation of the Clean Water Act. The case, investigated by a multi-agency task force, revealed a pattern of negligence that led to the unauthorized discharge of over 454,000 gallons of highly corrosive Fluorosilicic Acid (FSA) into the Mississippi River in March 2008.

According to court documents, Stolthaven was aware of both the corrosive nature of FSA and a history of leaks at its facility. Despite this knowledge, the company failed to implement adequate safety measures, specifically a rubber-lined storage tank and an emergency containment system. This lack of preparedness directly contributed to the massive spill, forcing state and federal agencies to authorize the continued discharge of the FSA to mitigate a larger environmental and public health crisis. The decision to allow the continued release, while averting a potentially catastrophic failure of containment, highlights the severity of Stolthaven’s initial negligence.

The investigation, led by the United States Environmental Protection Agency’s Criminal Investigative Division, uncovered that Stolthaven deliberately concealed its inadequate storage practices from regulatory bodies. This omission hindered oversight and prevented timely intervention to prevent the spill. Investigators found that had the company invested in proper infrastructure, the incident could have been avoided. The US Coast Guard Criminal Investigative Service and the Louisiana Department of Environmental Quality’s Criminal Investigative Division also contributed to the probe.

Legal Ramifications

Stolthaven was initially charged on July 12, 2011, with violating 33 U.S.C. 1319(c)(1)(A) of the Clean Water Act, specifically the negligent violation provision. The company formally pled guilty on October 13, 2011. The sentencing, handed down on January 17, 2012, included a $200,000 federal fine and a 24-month probationary period. Additionally, the company was found to have violated 18 U.S.C. 1001, relating to knowingly making false statements to federal investigators regarding their storage and safety protocols.

Official Statements

Peggy Hatch, Secretary for the Louisiana Department of Environmental Quality, emphasized the importance of accountability for environmental violations. “It is important that there are consequences when environmental regulations are broken,” Hatch stated. Ivan Vikin, Special Agent in Charge of EPA’s Criminal Enforcement Program, added that facilities have a “responsibility to follow the nation’s environmental laws” and protect waterways and public health. U.S. Attorney Jim Letten affirmed that his office “will not tolerate the illegal discharges of harmful solutions into our waterways.”

Key Facts

• Defendant: Stolthaven New Orleans LLC
• Crime: Negligent violation of the Clean Water Act (33 U.S.C. 1319(c)(1)(A)) & 18 U.S.C. 1001
• Location: Mississippi River, Louisiana
• Date of Spill: March 17, 2008
• Substance Released: 454,465 gallons of Fluorosilicic Acid (FSA)
• Penalty: $200,000 fine and 24 months probation
• Contributing Factor: Failure to utilize appropriate storage tanks and emergency containment systems.

This case serves as a stark reminder of the potential consequences of environmental negligence and the critical role of robust safety measures in preventing industrial accidents. The collaborative effort between federal and state agencies underscores the commitment to protecting the Mississippi River and ensuring environmental compliance.

Source: EPA ECHO Enforcement Case Database

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