Tag: settlement

  • Virginia Dairy Settles With EPA on Alleged Environmental Violations

    environmental Strategist®, between the lines:  As an environmental Strategist®, the number one pushback we hear from a business with regard to strategizing on managing and transferring their environmental exposures is, “We do not have any environmental exposures in our business.”

    We know every business is impacted by environmental exposures, but instead of getting confrontational, I have found the best comeback to anyone who believes they do not have any environmental exposures impacting their business is to agree with them and then ask, do you have any neighbors that have environmental exposures associated with their business?  What if a neighboring business had an environmental loss and it impacted you?  When they do a Phase I site assessment they do a minimum of a 2 mile radius search to determine if there are any properties within a 2 mile radius that could cause an environmental loss and impact neighboring properties.

    The story below is just one simple example of how vapor intrusion / air emissions from a neighboring property can impact businesses causing sick building syndrome.

    eS Risk Management Strategies: 

    1. When meeting with a business that does not believe they have any environmental exposures, explain to them that in a Phase I site assessment they do a minimum of a 2 mile radius search to see if any neighbors could contaminate their property.  Ask them to pull up Google maps satellite and type in their address.  Now ask them scan back to a 2 mile radius from their property.  Lastly, ask them how confident they feel that no neighbors within that two mile radius will contaminant their property?  What is their strategy should a third party contaminate their property?  Pollution liability insurance can protect property owners should neighboring third parties contaminate their property.
    2. In preparation for a meeting to strategize on managing and transferring environmental exposures go to the EPA website: https://echo.epa.gov/.  At the EPA ECHO website you can type in a street address, a city, a county / perish… and it will give you a list of businesses / property owners that have or currently are involved in a cleanup or environmental violations.  Sharing a list of the neighboring properties is a great way to show that a credible source, the government, has identified contaminating neighbors and if the government knows about it, shouldn’t it be of concern to them.  What is their strategy?

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    News Releases from Region 03

    PHILADELPHIA (July 21, 2016) – The U.S. Environmental Protection Agency announced today that Sunshine Pride Dairy, Inc. will pay a $179,074 penalty to settle alleged federal environmental violations at its former cheese processing facility in Winchester, Va.  The dairy shut down cheese processing operations in December 2011, but left anhydrous ammonia, a hazardous substance, stored in its refrigeration system with only a skeleton maintenance crew at the facility.

    EPA alleged that in July 2012, the facility did not properly notify emergency response agencies about two instances when anhydrous ammonia was released into the air.  These included one release of between 100-500 pounds and another of more than 1,500 pounds. After the second release, Sunshine Pride Dairy had the remaining anhydrous ammonia drained from the system.

    EPA cited the company for not updating its operating procedures to reflect current conditions at the facility, failing to document proper training of its operators, and failing to maintain its ammonia processing equipment.  In addition, EPA also alleged that the dairy did not report the ammonia to the state, county and local fire department as required on its annual chemical reporting forms for the years 2012 and 2013.

    The settlement resolves alleged violations under three federal statutes: failing to maintain risk management obligations required under the Clean Air Act Section 112(r); failing to comply with community right-to-know reporting requirements; and failing to report releases to the National Response Center, as required by the Comprehensive Environmental Response, Compensation, and Liability Act.

    These requirements help to ensure safeguards are in place to protect the health and safety of workers, local residents and the environment.  It’s also essential that local, state and national emergency response authorities are notified immediately when a release of hazardous substances occurs, so they can respond quickly and effectively.

    As a part of the settlement, the company did not admit or deny EPA’s allegations.

    The applicable federal statutes are:

    CERCLA and EPCRA release reporting and annual inventory reporting:
    https://www.epa.gov/epcra
    Clean Air Act Section 112(r): https://www.epa.gov/rmp

  • Matson settles Hawaii’s claims over molasses spill for $15M

    What is a pollutant?  environmental Strategist describes a pollutant as any material, substance or product which is introduced into an environment for other than its intended use or purpose. There are numerous examples of fresh water, milk, cheese, fruit juice, beer, etc… all being classified as pollutants, and insurance coverage for pollution incidents  being denied by the General Liability carriers due to total pollution exclusions.  As the article below points you can add Molasses to the list of pollutants.

    In today’s transparent business environment, successful businesses balance managing and transferring their environmental exposures to drive their growth and profits. Environmental Risk Managers (ERMI) has a cornucopia of educational resources to coach you and your client’s on managing and transferring their environmental exposures.

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    This Sept. 12, 2013 file photo shows various kinds of dead marine life on the dock fronting the La Mariana Sailing Club in Keehi Lagoon in Honolulu. A major shipping company will pay the state more than $15 million for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday, July 29, 2015. (AP Photo/Eugene Tanner, File)
    Jul. 29, 2015 10:15 PM EDT

    HONOLULU (AP) — A major shipping company has agreed to pay more than $15 million to compensate for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday.

    Attorney General Doug Chin called the settlement with Hawaii-based Matson Navigation Co. one of the largest for an environmental violation in Hawaii’s history. The settlement includes a combination of cash, restoration efforts and funding for environmental programs, he said.

    Matson is also agreeing to cease its molasses operation in Hawaii and pay for removal of its molasses tanks and any remaining molasses, Chin said.

    The company will pay $5.9 million to the state, and the costs related to ending the molasses operation are estimated between $5.5 million and $9.5 million, which would put the total settlement amount between $11.4 million and $15.4 million, Matson Inc. said in a statement.

    “The range Matson provides in its press statement appears to reflect a desire to report a smaller loss to its investors for its next earnings report,” Chin said in response. “I have received assurances and the evidence strongly indicates that it will in fact cost $9.5 million for Matson to terminate its molasses operations in Hawaii. The state will make sure that Matson spares no costs and cuts no corners.”

    The 1,400 tons of molasses that spilled into the harbor in 2013 killed more than 26,000 fish and other marine life. Enough molasses to fill about seven rail cars oozed out from a section of pipe Matson thought had been sealed, suffocating marine life and discoloring the water as the sticky substance sunk to the bottom of the harbor.

    The spill, in an industrial area about 5 miles west of Waikiki’s hotels and beaches, shut down much of Honolulu Harbor for nearly two weeks.

    Reaching a settlement allowed the state to avoid a lawsuit that would have taken eight to 10 years to resolve in court, Chin said.

    The $5.9 million paid to Hawaii includes money to re-grow a coral nursery to help replace coral that had been damaged or destroyed. It will also reimburse the state for cleanup efforts and other costs, including nearly $2 million in legal fees. There will also be a contribution to the International Union for Conservation of Nature’s World Conservation Congress, which is being hosted by Hawaii next year.

    Matson executives said previously that they were not prepared for the possibility of a spill, despite transporting molasses from the pipeline for about 30 years.

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    In this Monday, Sept. 16, 2013 photo, a Maston ship sits in Honolulu Harbor near the site of a molasses spill. A major shipping company will pay the state more than $15 million for a 2013 molasses spill in Honolulu Harbor, Hawaii’s attorney general said Wednesday, July 29, 2015. (AP Photo/Oskar Garcia)

    Earlier this year, Matson Terminals Inc. pleaded guilty to federal criminal charges for illegally releasing the molasses into the harbor without a permit on Sept. 9 and 10, 2013. As part of a plea deal, Matson agreed to pay fines and restitution totaling $1 million, including $600,000 that went to the Waikiki Aquarium and Sustainable Coastlines Hawaii.

    Matson is the biggest company that ships goods to Hawaii from the mainland.

    “Matson has been a member of the community for more than a hundred years, and the company’s leadership understands the damage the molasses leak caused,” Gov. David Ige said in a statement. “The resolution allows reparations to occur now and helps see to it that such an environmental disaster does not happen again in Hawaii.”

    Now that there’s a settlement with Hawaii, the company doesn’t face any other pending claims, said Matson spokesman Jeff Hull.

    “Environmental stewardship is a core value in our company, so this event was a blow to all of us at Matson,” President and CEO Matt Cox said in a statement. “We can’t take back what happened, but we’ve done our best to make it right.”

    Matson shares climbed 51 cents, or 1.3 percent, to close Wednesday at $40.07, and they were up 1 cent in after-hours trading.