Steamship Mutual
Published: August 09, 2010
November 2005
“This prosecution stems from a national vessel pollution initiative aimed at stopping the discharge of waste oil from ships, a major source of pollution to ocean and inland waters ... In addition, this prosecution is a result of our focused effort to prosecute companies that provide false documents to authorities to avoid compliance. Companies need to understand that there are criminal consequences for attempting to deceive their regulators.”
This statement, made by U.S. Attorney Kevin V. Ryan in the context of a recent successful prosecution of one of the largest shipping companies in the world, should leave owners and operators in now doubt as to the U.S. authorities' approach to waste oil pollution offences. In that case the company was ordered to pay the maximum $500, 000 fine and to develop, fund and implement a comprehensive fleet wide environmental compliance plan to ensure future compliance by its vessels.
During a routine inspection of the M/V Jane Maersk the U.S. Coast Guard discovered waste oil in the overboard piping. Further investigation revealed evidence of false entries in the Oil Record Book in contravention of MARPOL requirements. These entries overstated the use of the vessel's incinerator (which is used to burn waste oil sludge) to avoid further questioning by the investigating authorities. Similar practice was subsequently also discovered on at least one other vessel in the company's fleet.
As part of the compliance plan, the company must, among other things:
- designate a corporate compliance manager to oversee implementation of the plan
- develop an environmental manual for all ships
- fully train employees,
- hire an outside environmental consultant who will conduct compliance audits of the company's vessels
The plan will also apply to any ships that come under the ownership of the company in the future
The ship's second engineer pleaded guilty to destruction of records and has already served a 4 month community confinement. He claims that engineers on other vessels had also hidden key records prior to a pending investigation. His sentence has been stayed pending further investigation of the company by U.S. authorities.
In another case, also in recent weeks, a chief engineer was indicted by a federal grand jury and charged with conspiracy, obstruction, destruction of evidence, false statements and violation of the Act to Prevent Pollution from Ships in connection with the use of a secretly concealed "magic pipe" used to discharge sludge and oil contaminated waste overboard. It is alleged that Coast Guard inspectors were presented with fictitious logs containing false entries claiming use of the vessel's oily water separator and omitting any reference to dumping overboard using bypass equipment.
If convicted, the chief engineer faces up to 5 years in prison for each of the conspiracy, obstruction and false statement charges, another 5 years for violating the Act to Prevent Pollution from Ships and up to 20 years on the destruction of evidence charge.
Also on the Steamship website:
$3.5 Million Fine For Illegal Waste Oil Dumping
Oily Water Separation Systems - USCG Information
U.S. Ports - Oily Water Separation Systems - Criminal Sanctions