PENALTIES AND SANCTIONS

January 2005

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Recent Investigations, Settlements, Penalties and Sanctions

Federal and state agencies have recently entered into million-dollar settlements; particularly noteworthy is the California Orange County Sanitation District’s decision to forego a five-year waiver from its secondary treatment requirements in 2002 which resulted in stricter effluent limits that the sanitation district was unable to immediately comply with and as a result has agreed to spend $600 million for a system upgrade. The Esso Standard Oil Company has agreed to pay $3 million in reimbursement of past response costs for its share of the contamination at the Tutu Wellfield Site. Retailer Wal-Mart entered into an agreement with the Florida Department of Environmental Protection to pay a $765,000 penalty for waste oil storage tank violations and the CEO of Sabine Transportation was convicted of engaging in a conspiracy to illegally dump fuel-soaked grain into the waters of the South China Sea.