CHS Inc. Fined $500,000 for Failing to Report
Hazardous Substance Spill in Montana
STATES NEWS SERVICE
SOURCE: STATES NEWS SERVICE
CREATED: JANUARY 28, 2013
The following information was released by the United
States Attorney's Office for the District of Montana:
The United States Attorney's Office announced that
during a federal court session in Great Falls, on
January 22, 2013, before U.S. District Judge Sam E.
Haddon, Cenex Harvest States, Inc., (CHS Inc.) was
fined $500,000 for failure to report a release of a
hazardous substance. In addition, CHS will make a
$50,000 payment to the Phillips County Rural
Fire Department as community service and pay a $400
special assessment.
In an Offer of Proof filed by Assistant U.S. Attorney Kris
A. McLean, the government stated it would have
proved at trial the following:
The Milk River Cooperatives' (MRC) facility at Malta is
owned by CHS Inc. The MRC facility's primary business
consisted of retail sales of feed and seed, fertilizers,
pesticides, and herbicides to local farmers. During late
2009, the herbicides stored at the MRC facility
included approximately 1,800 pounds of materials
containing the chemical 2,4-D.
On November 21, 2009, at approximately 1:30 a.m.,
the MRC facility caught fire. The Phillips County
Volunteer Fire Department Chief arrived on the scene
at approximately 2:00 a.m. The Chief observed the
MRC facility manager on sight moving equipment to
safety. The MRC facility manager told the Chief that
the building held a variety of different chemicals. The
Chief told the MRC facility manager to place berms in
the ditches to contain the flow of chemicals and to "get
hold of a hazmat team." The Chief was concerned
about the liquid chemicals all over the floor of the
building. The MRC facility manager watched large
barrels of the chemical 2,4-D go up in flames. The
MRC facility manager asked the fire department to not
spray water on the fire to prevent the spreading of the
chemicals. The Chief left the fire scene at
approximately 4:30 a.m. and observed that most of
the chemicals located inside the building had burned
or released to the air and ground.
The general manager for all MRC facilities arrived on
the scene at approximately 3:30 a.m. Upon his arrival,
the general manager took a CHS Inc. emergency
response card out of his wallet and called CHS Inc.'s
Environmental, Health and Safety Manager to notify
him of the fire. The Environmental, Health and Safety
Manager called the State of Montana Disaster and
Emergency Planning Services (MDES) to report the fire
at CHS Inc.'s Malta facility. The MDES planner that
received the call understood that it was a warehouse
fire and that chemicals such as glyphosate, 2,4-D and
Round-up were contained in the warehouse. The MDES
planner understood from CHS Inc.'s Environmental,
Health and Safety Manager that the fire was small and
of no significance. The MDES planner was not told that
chemicals were released onto the ground or that the
chemicals posed any risk. The MDES planner
understood the fire was under control and contained in
the facility. No one from CHS Inc. placed a call to the
National Response Center or the EPA Emergency
Response Center in Denver, Colorado.
The manager of CHS Inc.'s Big Sandy facility also
served as the safety manager for its Malta facility. This
CHS Inc. manager responded to the fire scene at
approximately 7:00 a.m. on November 21. The
manager provided an inventory of chemicals that had
been stored at the Malta facility to the Malta Fire
Department. The manager was very concerned about
products containing 2,4-D being toxic and dangerous
when consumed in a fire. The manager later stated
that if the wind had been blowing west, towards Malta,
they would have evacuated the town. Shortly after the
fire, 14 calves downwind at a ranch east of Malta died
of a lung ailment. A veterinarian stated that toxic
smoke from the fire could not be ruled out as a cause
of death. CHS Inc. paid the owners of the calves
market value for the dead calves and also purchased
approximately 473 head of cattle that had been
exposed to smoke from the MRC facility fire.
Cleanup of the fire's aftermath included collection of
6,750 gallons of a water/chemical mixture waste
created by fire suppression efforts. Impacted soils
around the facility were excavated. Approximately 130
cubic yards of 2,4-D contaminated soil was collected
and held for proper disposal.
Congress has passed many laws regulating companies
to be good neighbors to the environment. There is an
existing regulatory framework to protect the public
health of Montana citizens and Montana businesses. In
fact, most of the environmental laws, like the
Comprehensive Environmental Response
Compensation and Liability Act (CERCLA), came into
existence 30 or 40 years ago. Under CERCLA, CHS had
the duty to immediately notify the National Response
Center as soon as it had knowledge of an unpermitted
release of hazardous substance, specifically the
chemical 2,4-D. CHS failed its duty." said U.S. Attorney
Michael W. Cotter. "The failure by any individual or
corporation to properly report and handle a chemical
spill will be investigated and prosecuted in the District
of Montana. The U.S. Attorney's Office will continue to
strive to protect Montanans' public health and safety
and the environment for generations to come."
Complete, accurate and honest reporting is essential in
order to protect the public when harmful toxins are
released from facilities," said Jeffrey Martinez, Special
Agent in Charge of EPA's criminal enforcement
program in Montana. "Following a fire and release of
hazardous substances, the defendant failed to notify
the proper authority as required by law." "Today's
sentence shows that this type of conduct will not be
tolerated."
The investigation was conducted by the Environmental
Protection Agency's Criminal Investigation Division.
Copyright 2013 States News Service
http://www.feedandgrain.com/news/10860044/chs-
inc-fined-500000-for-failing-to-report-hazardous-
substance-spill-in-montana
Hazardous Substance Spill in Montana
STATES NEWS SERVICE
SOURCE: STATES NEWS SERVICE
CREATED: JANUARY 28, 2013
The following information was released by the United
States Attorney's Office for the District of Montana:
The United States Attorney's Office announced that
during a federal court session in Great Falls, on
January 22, 2013, before U.S. District Judge Sam E.
Haddon, Cenex Harvest States, Inc., (CHS Inc.) was
fined $500,000 for failure to report a release of a
hazardous substance. In addition, CHS will make a
$50,000 payment to the Phillips County Rural
Fire Department as community service and pay a $400
special assessment.
In an Offer of Proof filed by Assistant U.S. Attorney Kris
A. McLean, the government stated it would have
proved at trial the following:
The Milk River Cooperatives' (MRC) facility at Malta is
owned by CHS Inc. The MRC facility's primary business
consisted of retail sales of feed and seed, fertilizers,
pesticides, and herbicides to local farmers. During late
2009, the herbicides stored at the MRC facility
included approximately 1,800 pounds of materials
containing the chemical 2,4-D.
On November 21, 2009, at approximately 1:30 a.m.,
the MRC facility caught fire. The Phillips County
Volunteer Fire Department Chief arrived on the scene
at approximately 2:00 a.m. The Chief observed the
MRC facility manager on sight moving equipment to
safety. The MRC facility manager told the Chief that
the building held a variety of different chemicals. The
Chief told the MRC facility manager to place berms in
the ditches to contain the flow of chemicals and to "get
hold of a hazmat team." The Chief was concerned
about the liquid chemicals all over the floor of the
building. The MRC facility manager watched large
barrels of the chemical 2,4-D go up in flames. The
MRC facility manager asked the fire department to not
spray water on the fire to prevent the spreading of the
chemicals. The Chief left the fire scene at
approximately 4:30 a.m. and observed that most of
the chemicals located inside the building had burned
or released to the air and ground.
The general manager for all MRC facilities arrived on
the scene at approximately 3:30 a.m. Upon his arrival,
the general manager took a CHS Inc. emergency
response card out of his wallet and called CHS Inc.'s
Environmental, Health and Safety Manager to notify
him of the fire. The Environmental, Health and Safety
Manager called the State of Montana Disaster and
Emergency Planning Services (MDES) to report the fire
at CHS Inc.'s Malta facility. The MDES planner that
received the call understood that it was a warehouse
fire and that chemicals such as glyphosate, 2,4-D and
Round-up were contained in the warehouse. The MDES
planner understood from CHS Inc.'s Environmental,
Health and Safety Manager that the fire was small and
of no significance. The MDES planner was not told that
chemicals were released onto the ground or that the
chemicals posed any risk. The MDES planner
understood the fire was under control and contained in
the facility. No one from CHS Inc. placed a call to the
National Response Center or the EPA Emergency
Response Center in Denver, Colorado.
The manager of CHS Inc.'s Big Sandy facility also
served as the safety manager for its Malta facility. This
CHS Inc. manager responded to the fire scene at
approximately 7:00 a.m. on November 21. The
manager provided an inventory of chemicals that had
been stored at the Malta facility to the Malta Fire
Department. The manager was very concerned about
products containing 2,4-D being toxic and dangerous
when consumed in a fire. The manager later stated
that if the wind had been blowing west, towards Malta,
they would have evacuated the town. Shortly after the
fire, 14 calves downwind at a ranch east of Malta died
of a lung ailment. A veterinarian stated that toxic
smoke from the fire could not be ruled out as a cause
of death. CHS Inc. paid the owners of the calves
market value for the dead calves and also purchased
approximately 473 head of cattle that had been
exposed to smoke from the MRC facility fire.
Cleanup of the fire's aftermath included collection of
6,750 gallons of a water/chemical mixture waste
created by fire suppression efforts. Impacted soils
around the facility were excavated. Approximately 130
cubic yards of 2,4-D contaminated soil was collected
and held for proper disposal.
Congress has passed many laws regulating companies
to be good neighbors to the environment. There is an
existing regulatory framework to protect the public
health of Montana citizens and Montana businesses. In
fact, most of the environmental laws, like the
Comprehensive Environmental Response
Compensation and Liability Act (CERCLA), came into
existence 30 or 40 years ago. Under CERCLA, CHS had
the duty to immediately notify the National Response
Center as soon as it had knowledge of an unpermitted
release of hazardous substance, specifically the
chemical 2,4-D. CHS failed its duty." said U.S. Attorney
Michael W. Cotter. "The failure by any individual or
corporation to properly report and handle a chemical
spill will be investigated and prosecuted in the District
of Montana. The U.S. Attorney's Office will continue to
strive to protect Montanans' public health and safety
and the environment for generations to come."
Complete, accurate and honest reporting is essential in
order to protect the public when harmful toxins are
released from facilities," said Jeffrey Martinez, Special
Agent in Charge of EPA's criminal enforcement
program in Montana. "Following a fire and release of
hazardous substances, the defendant failed to notify
the proper authority as required by law." "Today's
sentence shows that this type of conduct will not be
tolerated."
The investigation was conducted by the Environmental
Protection Agency's Criminal Investigation Division.
Copyright 2013 States News Service
http://www.feedandgrain.com/news/10860044/chs-
inc-fined-500000-for-failing-to-report-hazardous-
substance-spill-in-montana
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