LOS ANGELES
A federal grand jury has indicted the Houston-based Phillips 66 Company on six counts for violating the Clean Water Act, the Justice Department announced today. The charges stem from illegally discharging hundreds of thousands of gallons of industrial wastewater from its Carson oil refinery into the Los Angeles County sewer system and failing to report the violations.
Phillips 66 faces two counts of negligent violations and four counts of knowingly violating the Clean Water Act.
The company is scheduled for arraignment in the coming weeks in the U.S. District Court in Los Angeles
“Protecting our environment is key to protecting our community,” said U.S. Attorney Martin Estrada. “Just like the rest of us, corporations have a duty to follow the law, so when companies contaminate, they must be held accountable. My office will continue to be vigilant in safeguarding our natural resources for all to enjoy.”
“Illegally discharging pollutants into the sewer system violates the Clean Water Act,” said Special Agent in Charge Kim Bahney of the U.S. Environmental Protection Agency’s Criminal Investigation Division. “The charges today illustrate EPA’s commitment to protecting the environment and ensuring accountability for those that neglect or fail to abide by our nation’s environmental laws.”
A federal grand jury indictment alleges that on the early morning of November 24, 2020, Phillips 66’s Carson refinery discharged industrial wastewater into the Los Angeles County sewer system with oil and grease levels more than 300 times the permitted limit.
Over approximately two and a half hours, the refinery released an estimated 310,000 gallons of wastewater, containing roughly 64,000 pounds of oil and grease, without notifying the Los Angeles County Sanitation Districts (LACSD).
The facility’s inadequate pretreatment controls failed to prevent or address the violation.
In December 2020, LACSD issued multiple notices of violation to Phillips 66 for the unauthorized discharge and failure to notify authorities. A month later, a company manager admitted the violation in a letter to LACSD and promised to retrain personnel on proper procedures.
On February 8, 2021, the refinery discharged another 480,000 gallons of non-compliant wastewater containing at least 33,700 pounds of oil and grease. LACSD issued additional violation notices in March 2021.
Once again, a Phillips manager acknowledged the violations and the failure to notify authorities. Every defendant is presumed innocent unless proven guilty.
If convicted of all charges, Phillips 66 faces five years’ probation on each count and up to $2.4 million in fines.
The U.S. Environmental Protection Agency is investigating this matter.
Assistant U.S. Attorneys Juan M. Rodriguez of the Public Corruption and Civil Rights Section and Dennis Mitchell of the Environmental Crimes and Consumer Protection Section are prosecuting this case.