A Texas-based energy company has been sentenced for a years-long scheme to illegally discharge polluted wastewater into the Gulf of Mexico, federal authorities announced. XPLOR Energy SPV-1, Inc. (XPLOR), of Southlake, Texas, was sentenced on March 4, 2015, to three years of probation and ordered to pay a $3.1 million penalty for violating the Clean Water Act.
The investigation, conducted by the U.S. Environmental Protection Agency (EPA) and the Louisiana Department of Environmental Quality (LDEQ), revealed that XPLOR knowingly dumped “produced water” – a byproduct of oil and gas extraction containing oil and other harmful substances – into the Breton Sound area of the Gulf. This illicit discharge occurred between approximately October 2009 and November 2011, while XPLOR operated the MP 35 offshore platform. The platform was designed to pump this wastewater into designated disposal wells, but those systems were failing.
Court documents detail that XPLOR was aware of faulty injection lines and insufficient disposal well capacity. Despite this knowledge, the company failed to adequately repair the infrastructure, leading to the continuous and unpermitted release of polluted water. The new owner of the platform discovered the ongoing discharge shortly after taking ownership in November 2011 and immediately reported it to regulators. Investigators determined XPLOR deliberately neglected necessary repairs, saving an estimated $1.55 million by avoiding the costs of proper maintenance and disposal.
Legal Ramifications
XPLOR pled guilty in November 2014 to one felony count of violating the Clean Water Act, specifically 33 U.S.C. 1319(c)(2)(A), which prohibits the discharge of pollutants without a permit. The $3.1 million penalty is broken down into a $2.5 million payment to the U.S. Treasury and a $600,000 payment to the Louisiana Department of Environmental Quality Trust Fund. The company will also be under federal supervision for three years as part of its probationary sentence.
Official Statements
U.S. Attorney Kenneth A. Polite emphasized the commitment to protecting the region’s natural resources. “Our Office will continue to work with its law enforcement partners to pursue charges against individuals and corporations whose illegal conduct threatens our region’s natural resources and public health,” he stated. Daniel J. Pflaster, Acting Special Agent in Charge of EPA’s criminal enforcement program in Louisiana, added that responsible energy development is paramount, and “EPA will continue to work with its law enforcement partners to hold companies accountable.”
Key Facts
- Defendant: XPLOR Energy SPV-1, Inc.
- Crime: Clean Water Act Violation
- Location: Breton Sound, Gulf of Mexico (offshore Louisiana)
- Timeframe: October 2009 – November 2011
- Pollutant: Produced water (brine) containing oil and harmful substances
- Penalty: $3.1 million (including restitution to Louisiana DEQ) and 3 years probation
- Statute Violated: 33 U.S.C. 1319(c)(2)(A)
- Financial Gain for XPLOR: Approximately $1,550,000 through negligence
The case highlights the ongoing risks posed by aging offshore infrastructure and the importance of rigorous environmental oversight in the energy sector. The LDEQ Secretary, Peggy Hatch, warned, “We will not tolerate any business, corporation or individual that bypasses state and federal laws for personal, professional or monetary gain.” The investigation was a joint effort between EPA’s Criminal Investigation Division and LDEQ’s Criminal Investigation Division, with the prosecution handled by Assistant U.S. Attorney Emily K. Greenfield.
Source: EPA ECHO Enforcement Case Database
Related Federal Cases
- XPLOR Energy SPV-1, Inc. Fined for Clean Water Act Violation, Texas… · Louisiana
- Glenn Kelly Johnson, Clean Water Act Violation, Louisiana 2000 · Louisiana
- International Matex Tank Terminal, Clean Water Act Violation, LA 2000 · Louisiana
- Glenn Cooper, Clean Water Act Fraud, Louisiana 2000 · Alabama
- Honeywell International, Clean Air Violation, LA 2007 · Louisiana
