(Washington, D.C.-March 17, 2005) Assistant Attorney
General for the Justice Department's Environment and Natural Resources
Division, Acting Assistant Administrator for Enforcement and Compliance
Assurance at the Environmental Protection Agency, and First Assistant
U.S. Attorney for the District of Delaware, announced today that Motiva
Enterprises LLC pleaded guilty to negligently endangering workers at its
former refinery in Delaware City, Delaware, discharging pollutants into
the Delaware River and negligently releasing sulfuric acid into the air,
both in violation of the Clean Air Act. Pursuant to a plea agreement,
Chief U.S. District Judge immediately sentenced Motiva to pay a fine of
$10 million and to serve a three-year term of probation.
Motiva, an oil refining and retail business owned by Shell Oil Company
and Saudi Refining, Inc., refines and markets gasoline to approximately
9,400 Shell-branded and Texaco-branded gasoline stations. Together with
Shell Oil Company, Motiva ranks as a leading refiner in the United States.
They collectively account for about 10 percent of the total U.S. refining
capacity and a market-leading 13 percent share of U.S. gasoline sales.
On July 17, 2001, Tank 393, a 415,000 gallon capacity tank at Motiva's
Delaware City Refinery, exploded while containing spent sulfuric acid,
which is a mixture of sulfuric acid, water, and hydrocarbons. The explosion
killed one worker and injured numerous others. Spent sulfuric acid from
the tank farm spilled into the Delaware River, resulting in thousands
of dead fish and crabs.
"Violations of our nation's environmental and worker safety laws
often go hand in hand, and can exact a terrible human price," said
Assistant Attorney General. "This prosecution puts those who would
violate those laws on notice that the people of the United States expect
them to mend their ways and act now to care for the environment and their
employees."
"Motiva's guilty plea is evidence of our commitment to prosecuting
violators who damage the environment, and particularly to prosecuting
violators who put their workers in harm's way at the same time. This dangerous
manner of 'doing business' is a crime and will not be tolerated,"
said Acting Assistant Administrator.
Following the explosion, EPA criminal investigators gathered evidence
which indicated that Tank 393 had a long history of problems. Among other
things, Tank 393 had numerous localized corrosion and leaks during the
previous eight years, including six leaks from June 1998 to May 2001.
Company inspectors repeatedly recommended that Tank 393 should be taken
out of service as soon as possible for an internal inspection, but no
internal inspection was conducted after 1994. Motiva also switched Tank
393 from storing fresh sulfuric acid to spent sulfuric acid without conducting
a full engineering review (known as a management of change review) that
would have required technical experts to analyze the changes to account
for the flammable hydrocarbons in spent sulfuric acid.
Shortly before the explosion, according to the statement of facts, Motiva
had several warnings from its own employees about Tank 393's problems.
Nevertheless, workers were sent to acid tank farm to repair the catwalk
connecting the tanks on July 17, 2001, and a hot works permit was issued
for the job. During the afternoon of that day, flammable vapors from Tank
393 reached a heat source, and the resulting explosion caused the Tank
393 to separate from its foundation pad. One victims body was never recovered.
Additionally, approximately 99,000 gallons of sulfuric acid drained into
the Delaware River for days after the explosion.
"The $10 million fine is the largest criminal environmental fine
in Delaware history," said First Assistant U.S. Attorney. "It
is an appropriate fine, given the gravity of Motiva's misconduct."
In announcing today's guilty plea, Assistant Attorney General and First
Assistant U.S. Attorney credited the Environmental Protection Agency's
Criminal Investigation Division; the EPA Office of Regional Counsel; the
Occupational Safety and Health Administration; the Delaware Department
of Natural Resources & Environmental Control; the Delaware State Police;
and the Delaware State Fire Marshal's Office.
This case was prosecuted by Senior Trial Attorney and Trial Attorney
of the Justice Department's Environmental Crimes Section and Assistant
U.S. Attorney. |