Texas-based Phillips 66 Company faces serious legal repercussions following the return of a six-count indictment by a federal grand jury, which accuses the energy giant of violating the Clean Water Act. The indictment, announced by the Justice Department on November 21, 2024, stems from allegations of illegally discharging hundreds of thousands of gallons of industrial wastewater from its Carson oil refinery. The waste was dumped directlyinto the Los Angeles County sewer system and the company failed to properly report these environmental violations.
Under scrutiny, Phillips 66 has been charged with two counts of negligently violating the Clean Water Act and four counts of knowingly breaching the same law. The company is expected to appear for arraignment at the United States District Court located downtown Los Angeles soon. U.S. Attorney Martin Estrada has stated, "Protecting our environment is key to protecting our community." He emphasized the importance of holding corporations accountable for contaminations, reinforcing every entity's duty to adhere to environmental laws.
The indictment details events from November 24, 2020, when Phillips 66's Carson refinery reportedly discharged roughly 310,000 gallons of industrial wastewater over approximately two and half hours. Alarmingly, the wastewater had concentrations of oil and grease more than 300 times above the levels permitted by law. Despite this severe violation, the company neglected to notify the Los Angeles County Sanitation District (LACSD) of the non-compliant discharge.
The LACSD, which oversees the county's sewer operations, issued several notices of violation to the company following the event. They noted the hazardous nature of the discharge and its adverse impact on the sanitation facility operations. Phillips acknowledged these violations but claimed they planned to retrain personnel to prevent future occurrences.
Further investigations revealed another troubling discharge event on February 8, 2021, when the Carson facility released approximately 480,000 gallons of non-compliant wastewater over five and half hours, involving at least 33,700 pounds of oil and grease. This incident similarly resulted in LACSD issuing violations to Phillips, which again failed to properly notify relevant authorities.
According to the U.S. Attorney's Office, the indictment serves to outline the allegations against Phillips 66, stressing the presumption of innocence until proven guilty. Should the company be convicted on all counts, it faces significant penalties, including up to five years of probation for each count and as much as $2.4 million in fines. The U.S. Environmental Protection Agency (EPA) is currently spearheading the investigation.
Assistant U.S. Attorneys Juan M. Rodriguez and Dennis Mitchell are leading the prosecution, affirming their commitment to ensuring corporations comply with environmental laws. Special Agent Kim Bahney from the EPA’s Criminal Investigation Division stated, "Illegally discharging pollutants...illustrates EPA’s commitment to protecting the environment. Those who neglect their duty to abide by environmental regulations must be held accountable." This incident serves as yet another example of the challenges posed to environmental integrity by industrial operations.
The imminent legal proceedings surrounding Phillips 66 highlight not only the company’s responsibilities but also the broader narrative concerning corporate compliance with environmental policies. These developments could set significant precedents for future industrial operations and their monitoring across the energy sector.
