ru
Quick Links
Defendant Summary
Sentencing
Plea Agreements
Trials
Indictments/
Informations
Environmental Crimes
Case Bulletin
U.S. Environmental Protection Agency
Office of Criminal Enforcement, Forensics and Training
This bulletin summarizes publicized investigative activity and adjudicated cases
conducted by OCEFT Criminal Investigation Division special agents, forensic specialists,
and legal support staff. To subscribe to this monthly bulletin you may sign up for
email alerts at http://www2.epa.gov/enforcement/criminal-enforcement-policy-
guidance-and-publications.
November 2015
In This Edition:
• Certified Environmental Services, Inc. — Region 2
• Brian Davis — Region 2
• Det Stavangerske Dampskibsselshab, Bo Gao, Xiaobing Chen, Xin Zhong —
Region 4
• Black Elk Energy Offshore Operation LLC, Grand Isle Shipment Inc., Wood
Group PSN Inc., Don Moss, Curtis Dantin, Christopher Srubar — Region 6
• Energy Resource Technology COM, LLC — Region 6
• Brock Gustin William Baker and Mark Stephen Avila — Region 9
f/EPA
United States
Environmental Protection
Agency
EPA Pub. 310-N-15-011
-------
Defendant Summary
Region
Defendants
Case Type/Status
Region 2
Certified Environmental Services,
Inc.
CAA/Negligent release of asbestos into the ambient
air
Region 2
Brian Davis
RCRA/lllegal treatment, storage, disposal of hazard-
ous waste without a permit
Region 4
Pet Stavangerske Damp-
skibsselshab. Bo Gao, Xiaobing
Chen, Xin Zhong
Act to Prevent Pollution from Ships/Discharging fuel
oil directly into ocean by bypassing oily-water separa-
tor, obstructing justice, witness tampering, conspira-
cy
Region 6
Black Elk Energy Offshore Opera-
tions LLC, Grand Isle Shipyards
Inc., Wood Group PSN Inc., Don
Moss, Curtis Dantin, Christopher
Srubar
Outer Continental Shelf Lands Act, CWA/Failure to
follow proper safety practices that led to an explo-
sion of an oil production platform and resulted in
death of three workers, injury to others, and an oil
spill
Region 6
Energy Resource Technology
GOM. LLC
Outer Continental Shelf Lands Act, CWA/Knowingly
and willfully failed to comply with the regulations for
hot work; tampering with the method of collecting
monthly overboard produced water discharge sam-
ples to be tested for oil and grease content pursuant
to NPDES permit
Region 9
Brock Gustin William Baker and
Mark Stephen Avila
State case/failure to warn of a concealed danger, in-
terference with enforcement, storage of hazardous
substances and repeated failures to communicate
with employees about hazardous substances.
Page 2
EPA Bulletin—November 2015
-------
Sentencings
New York Company Ordered to Pay Over $409.000 for NeRJiRent EndanRerment - On November 24, 2015,
CERTIFIED ENVIRONMENTAL SERVICES, INC., ("CES") was sentenced in federal district court for the
Northern District of New York to five years of probation, and to make restitution in the amount of
$409,829.67, for negligently releasing asbestos into the ambient air, thereby placing other persons in
imminent danger of death or serious bodily injury. The judge in the case credited CES for prior restitution
payments of $87,960.06 and ordered CES to make an initial lump-sum payment of $100,000 toward its
restitution obligation, and then pay monthly installments of $2,000 or 10 per cent of CES's net monthly cash
flow, whichever is greater. He also credited CES for time already served on its 5-year probation sentence.
The admissions by CES, in connection with pleading guilty to a one-count misdemeanor Information on May
5, 2015, included the following:
During the period of 1999 to 2007, CES was engaged in the business of, among other things,
conducting air monitoring and sampling, and performing laboratory analysis before, during, and at the
conclusion of asbestos abatement (removal) projects. CES provided air sampling and laboratory analysis for
asbestos abatements by AAPEX Environmental Services, Inc., and Paragon Environmental Services, Inc., which
had performed illegal "rip and run" removals in which asbestos was stripped and removed dry, scattered and
left behind in various locations throughout the work area, and was permitted to, and did, migrate outside of
the facility and into the ambient air.
Asbestos is a hazardous air pollutant, and severely toxic. Before asbestos abatement, containment
structures known as isolation barriers must be constructed around the abatement area by the contractor and
negative air pressure maintained to ensure that contaminated air in the abatement area does not filter back
to an uncontaminated area. The containment and negative air pressure must be maintained continuously
from the start of the abatement work through the cleanup operations and clearance air monitoring.
CES's negligence, which caused the release of asbestos and the resulting imminent danger to people,
involved: 1) CES employees failing in certain cases to: perform visual inspections for asbestos debris and
pools of water; observe required waiting periods before sampling; record accurate sampling starting and
stopping times; calibrate pumps before and after sampling; conduct aggressive air sampling (by agitating the
air inside the work area to ensure that present asbestos fibers are rendered airborne for collection and
measurement); and decontaminate air samplers and their equipment before leaving the asbestos work area
or signing in and out of containment; and 2) CES employees, in certain cases, conducting air sampling without
entering work areas; letting contractors collect air samples themselves; and overstating sampling times.
CES thereby negligently released asbestos into the ambient air and negligently placed persons in
imminent danger of death or serious bodily injury from exposure to asbestos fibers.
In 2010, a 15-count superseding indictment charged CES and others with environmental offenses and
mail fraud, and a jury trial concluded with the conviction of CES and three co-defendants. In 2014, however,
the U.S. Court of Appeals for the Second Circuit reversed the convictions and remanded for a new trial as to
the three defendants (including CES) that appealed their convictions. The sentencing of CES for negligent
endangerment resolves the pending charges against CES and two co-defendants who also appealed. Two
other co-defendants face re-sentencing.
The case was investigated by EPA's Criminal Investigation Division, the New York regional office and
the Syracuse resident office. On remand, the case was prosecuted by First Assistant U.S. Attorney Grant C.
Jaquith. Back to Defendant Summary
PageS
EPA Bulletin— November 2015
-------
Sentencings
New York Man Sentenced to Prison for MleRally Treating StorinR and DisposinR of Hazardous Chemicals --
On November 27, 2015, BRIAN DAVIS, of Owego, New
York, was sentenced in federal district court for the
Northern District of New York to serve one year and
one day in federal prison after pleading guilty earlier in
the year to one felony count of treating, storing, and
disposing of hazardous waste without a permit, in
violation of the Resource Conservation and Recovery
Act. In addition to the prison sentence, Davis was
sentenced to pay a $5,000 fine and to serve a three-
year term of supervised release after release from
prison.
In June 2013, Davis, the owner of Large Car LLC,
a company in Owego that installs and removes old
industrial plating equipment for re-use or recycling,
agreed to remove various hazardous chemicals,
including arsenic, chromium, lead, and selenium, from a
bankrupt waste generator facility in New Hampshire.
Davis did not have a permit or environmental license to
remove these chemicals, but nevertheless transported
them to the Large Car LLC facility in Owego where he
treated, stored, and disposed of them over the course
of nearly a year. Davis stored the hazardous waste
without labeling, and failed to properly isolate
incompatible materials, or protect them from the
elements. Davis also treated and disposed of much of
this waste by igniting and evaporating it, mixing it with
other materials, and shipping it to offsite locations
without listing it on manifests, as required.
The case was investigated by EPA's Criminal
Investigation Division and the New York Department of
Environmental Conservation. It was prosecuted by
Assistant United States Attorney Michael F. Perry.
Back to Defendant Summary
Plating wastes illegally stored at the Large Car LLC facility.
The top picture shows EPA scientists sampling the waste.
Page 4
EPA Bulletin—November 2015
-------
Plea Agreements
Two California Men Plead Guilty to
Misdemeanors Related to Hazardous Waste
StoraRe - On November 20, 2015, BROCK
GUSTIN WILLIAM BAKER and MARK STEPHEN
AVILA pled guilty in Ventura County,
California, court to failure to warn of a
concealed danger, interference with
enforcement, and two misdemeanors related
to storage of hazardous substances and
repeated failures to communicate with
employees about hazardous substances. Baker
and Avila's guilty pleas were entered as to
charges in the indictment returned by the
Ventura County Grand Jury in connection with
their involvement in an explosion that occurred
at Santa Clara Waste Water Company in Santa Paula, California on November 18, 2014. A sentencing hearing
for both defendants is scheduled in Ventura Superior Court for June 1, 2016.
Back to Defendant Summary
~F r
Aerial photograph of the Santa Clara Waste Water Company
The explosion that occurred at the Santa Clara Waste Water Company on November 18, 2004 and its aftermath.
PageS
EPA Bulletin— November 2015
-------
Trials
The M/T Stavanger Blossom
Norwegian Shipping Company and Engineering Officers Convicted of Environmental Crimes and
Obstruction of Justice - On November 10, 2015, a federal jury in the U.S. District Court for the Southern
District of Alabama convicted DET STAVANGERSKE DAMPSKIBSSELSKAB AS (DSD Shipping) and three
employees with obstructing justice,
violating the Act to Prevent Pollution
from Ships (APPS), witness tampering and
conspiracy. DSD Shipping is a Norwegian-
based shipping company that operates
crude oil tankers, including the M/T
Stavanger Blossom. Also convicted at
trial were three senior engineering
(officers, BO GAO, XIAOBING CHEN and
IXIN ZHONG, employed by DSD Shipping
to work aboard the vessel. A fourth
(employee, Daniel Paul Dancu, pleaded
guilty in October.
The jury found DSD guilty of all
charges except the two allegations of concealing the so called "magic pipe." They found Chief Engineer
Gao, Second Engineer Chen, and Fourth Engineer Zhong guilty of various counts of failing to maintain an
oil record book, obstruction of justice related to the false oil record book, failing to maintain a garbage
record book, obstruction of justice related to the false garbage record book, and witness intimidation.
Chief Engineer Gao was also convicted of the conspiracy charge, although Second Engineer Chen and
Fourth Engineer Zhong were acquitted of that charge.
The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of
waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use
pollution prevention equipment, known as an oily-water separator, to preclude the discharge of these
materials. Should any overboard discharges occur, they must be documented in an oil record book, a log
that is regularly inspected by the U.S. Coast Guard.
The evidence presented during the two-week trial demonstrated that in January 2010, DSD
Shipping knew that the oily-water separator aboard the M/T Stavanger Blossom was inoperable. In an
internal corporate memo, DSD Shipping noted that the device could not properly filter oil-contaminated
waste water and stated that individuals "could get caught for polluting" if the problem was not
addressed. Rather than repair or replace the oily-water separator, however, DSD Shipping used various
methods to bypass the device and force the discharge of oily-wastes into the ocean. During the last
months of the vessel's operation prior to its arrival in the Port of Mobile, the M/T Stavanger Blossom
discharged approximately 20,000 gallons of oil-contaminated waste water.
The evidence at trial also established that DSD Shipping employees intentionally discharged fuel
oil sludge directly into the ocean. Specifically, crewmembers cleaned the vessel's fuel oil sludge tank,
removed approximately 264 gallons of sludge and placed the waste oil into plastic garbage bags. After
hiding the sludge bags aboard the ship from port authorities in Mexico, defendants Chen and Zhong
PageS
EPA Bulletin—November 2015
-------
Trials
ordered crewmembers to move as many as 100 sludge bags to the deck of the vessel. There, Zhong
threw the sludge bags overboard directly into the ocean.
DSD Shipping, Dancu, Gao, Chen and Zhong, all attempted to hide these discharges from the U.S.
Coast Guard by making false and fictitious entries in the vessel's oil record book and garbage record
book. Further, after arriving in Mobile, Chen and Zhong lied to the U.S. Coast Guard about the discharge
of sludge and ordered lower ranking crewmembers to do the same.
At the conclusion of trial, DSD Shipping was convicted of one count of conspiracy, three counts of
violating APRS, three counts of obstruction of justice and one count of witness tampering. Defendant
Gao was convicted of one count of conspiracy and two counts of obstruction of justice. Defendant Chen
was convicted of one count of violating APRS, three counts of obstruction of justice and one count of
witness tampering. Finally, Zhong was convicted of two counts of violating APPS, two counts of
obstruction of justice and one count of witness tampering. DSD Shipping could be fined up to $500,000
per count, in addition to other possible penalties. Gao, Chen and Zhong face a maximum penalty of 20
years in prison for the obstruction of justice charges
The case was investigated by EPA's Criminal Investigation Division, the U.S. Coast Guard Sector
Mobile, U.S. Coast Guard District Eight, and CGIS. It was prosecuted by Assistant U.S. Attorney Michael D.
Anderson, with the U.S. Attorney's Office for the Southern District of Alabama, and the Department of
Justice's Environmental Crimes Section Trial Attorney Shane N. Waller.
Back to Defendant Summary
The fuel oil sludge tank that crewmembers cleaned, placing 264 gallons of sludge into these plastic garbage bags. These
were later thrown overboard.
Page?
EPA Bulletin—November 2015
-------
Indictments/Informations
Three Companies and Three Individuals CharRed in Fatal 2012 Gulf of Mexico Oil DrillinR Platform Explosion
- On November 19, 2015, BLACK ELK ENERGY OFFSHORE OPERATIONS LLC, GRAND ISLE SHIPYARDS INC.,
WOOD GROUP PSN INC., as well as DON MOSS, of Groves, Texas, CURTIS DANTIN, of Cut-Off, Louisiana,
and CHRISTOPHER SRUBAR, of Destrehan, Louisiana, were charged in federal district court for the Eastern
District of Louisiana with crimes for a November 2012 explosion on an oil production platform that resulted
in the death of three workers, the injury of others and an oil spill.
According to the indictment, the defendants were involved in different capacities while construction
work was being done of the West Delta 32 platform when it exploded. Black Elk Energy Offshore Operations
LLC and Grand Isle Shipyards Inc. are charged with three counts of involuntary manslaughter, eight counts of
failing to follow proper safety practices under the Outer Continental Shelf Lands Act (OCSLA) and one count
of violating the Clean Water Act. Wood Group PSN Inc., Moss, Dantin and Srubar are charged with felony
violations of OCSLA and the Clean Water Act.
The Outer Continental Shelf Lands Act and federal regulations govern welding and activities that
generate heat or sparks, known as "hot work," on oil production platforms in U.S. waters. Because this work
can be hazardous and cause explosions, regulations mandate specific precautions that must be taken before
the work can commence. For instance, before hot work can be performed, pipes and tanks that had
contained hydrocarbons must be isolated from the work or purged of hydrocarbons. Gas detectors and
devices used to prevent gas from travelling through pipes must be used. According to the Indictment, these
safety precautions were not followed and an explosion causing the deaths of three men and a spill resulted.
An indictment is only an allegation of wrongdoing and the defendants are presumed innocent unless
proven guilty at trial.
The case was investigated by EPA's Criminal Investigation Division and the U.S. Department of Interior
Office of Inspector General. It is being prosecuted by Emily Greenfield of the U.S. Attorney's Office for the
Eastern District of Louisiana and by Kenneth E. Nelson of the Environmental Crimes Section of the
Department of Justice.
Back to Defendant Summary
PageS EPA Bulletin—November 2015
-------
Indictments/Informations
Louisiana Oil Company Charged with Multiple Felonies Related to Violations of Offshore Oil Production
Safety and Environmental Regulations - On November 30, 2015, ENERGY RESOURCE TECHNOLOGY COM,
LLC (ERT), was charged in federal district court for the Eastern District of Louisiana with two felony counts
of violating the Outer Continental Shelf Lands Act and two felony counts of violating the Clean Water Act
related to conduct on its offshore oil production facilities in the Gulf of Mexico.
According to the Bill of Information, on or about November 26, 2012, ERT knowingly and willfully
failed to comply with the regulations for hot work on its offshore production platform known as Ship Shoal
225. Specifically, it is alleged that ERT violated a regulation which mandates that welding and associated
activities, also known as hot work, on offshore facilities may not take place within 10 feet of a well bay unless
production in that area is shut-in.
On or about November 27, 2012, on Ship Shoal 225, ERT is further alleged to have knowingly and
willfully failed to comply with the regulations for blowout preventer testing. A blowout preventer system is
designed to ensure well control and prevent potential release of oil and gas and possible loss of well
control.
ERT is also alleged to have violated the Clean Water Act by tampering with the method of collecting
the monthly overboard produced water discharge samples to be tested for oil and grease content pursuant
to its NPDES permit. As required by its NPDES Permit, ERT is prohibited from introducing into the Gulf of
Mexico produced water in which the oil and grease content exceed a monthly average of 29 mg/l. Produced
water is that which is brought up from the hydrocarbon-bearing strata during the extraction of oil and gas,
and can include formation water, injection water, oil and any chemicals added downhole or during the oil/
water separation process. ERT collects and submits monthly samples of its produced water to a laboratory
for testing to determine whether the quantity of oil and grease contained in the produced water exceeds a
monthly average of 29 mg/l, as required by its NPDES Permit.
The Bill of Information alleges that beginning at a time unknown, but continuing to on or about
March 2014, ERT tampered with the monitoring methods for the collection of the overboard water samples
on nine of its offshore facilities in violation of Title 33, United States Code, Section 1319(c)(4). Most
recently, on or about June 9, 2015, ERT is alleged to have knowingly discharged and caused a discharge of a
pollutant from a point source into the Gulf of Mexico without a permit in violation of Title 33, United States
Code, Section 1319(c)(2)(A).
If convicted, ERT faces a maximum term of probation of five years per count and/or a maximum fine
of $500,000 per count or twice the gross gain or twice the gross loss to any person pursuant to statute.
The case was investigated by EPA's Criminal Investigation, the Department of Interior-Office of
Inspector General (Energy Investigations Unit), the Investigations and Review Unit, and the Bureau of Safety
and Environmental Enforcement. It was prosecuted by Assistant United States Attorney Emily K. Greenfield
of the United States Attorney's Office's National Security Unit.
Back to Defendant Summary
Page 9 EPA Bulletin—November 2015
------- |