4 Chapter Environmental Crime
Kevin McClincy February 4, 2008
Statements of Harm
Ralph Nader The harm done to human health and safety by business crime should dispel the ,,distinguishing characteristic of white collar crime as being absent of a physical threat. Gilbert Geis It is quite possible that more people have died from corporate conduct or corporate condoned violence... than have victims of more traditional kinds of murder
Types of Environmental Crimes
Chemical spills Dumping of industrial waste Water pollution Air pollution Workplace exposure Radioactive poisoning
Two Ways Toxic Materials Illegally Released into Environment
Negligent Actions of Participants Knowing Disregard for Safety
Example of Negligent Action
Exxon Valdez
1989 oil spill from a grounded oil tanker Captain drunk $900 million civil penalty and $100 million criminal fine Villagers had 700 percent increase in emotional problems in months after spill
Examples of Knowing Disregard for Safety
Hooker Chemical at Love Canal, NY W.R. Grace (Cryovac) at Woburn, MA Pacific Gas & Electric at Hinkley, CA DuPont at Parkersburg, WV Sludge Runners
Hooker Chemical at Love Canal, NY
From 1942-1953 Hooker Chemical (a subsidiary of Occidental Chemical) burned 20 million pounds of chemical waste in an abandoned waterway and then sold it for $1 to local Board of Education As early as 1958 Hooker Chemical knew the problem posed to Love Canal but decided to do nothing In 1977 melting snow forced contaminated groundwater (sludge) in basements 200 chemicals identified in sludge including dioxin. Of the 16 pregnancies in 1979 only one was a healthy baby: 4 miscarriages, 2 stillborns, 9 with birth defects Area evacuated 1995--Occidental agreed to pay $129 million for cleanup
W.R. Grace at Woburn, MA
Woburn industries were leather tanning and chemical and plastic manufacturers Water supply was Lake Mishawum In 1974 Cryovac Division of W.R. Grace Co. dumped chemicals into a pit. Chemical leached into the drinking water Jury convicted but judge set aside the verdict W.R. Grace settled out of court for $8 million 1988 criminally indicted plead guilty to one count and fined $10,000
Pacific Gas & Electric at Hinkley, CA
Made famous by Erin Brokovitch Chromium-6 leached into groundwater and into wells Drinking water from wells PG&E hid test findings for years Birth defects, cancer $333 million settlement
DuPont at Parkersburg, WV
DuPont producing Teflon In 2004, EPA said chemical used to make Teflon caused cancer, birth defects, and other serious problems 1981--DuPont knew of perfluorooctanoic acid (PFOA) contamination in water and in childrens blood Kept information secret--billions in profits earned In 2004 paid $300,000 to 60,000 residents in WV and OH and paid $17 millions in fines to EPA
Sludge Runners
With the enactment of illegal dumping legislation about to take effect in 1980 a lot of illegal dumping occurred Tanker truck open their valves and spill toxic waste as they drive Other simply abandoned trucks with toxic materials in public places Times Beach, MO hired firm to oil 10 miles of unpaved roads oil contained toxic waste. Government bought the whole town
Importance of Clean Water
The EPA estimates that 30,000 waste sites pose significant problems to water contamination Water is not only polluted by direct introduction of pollutants into water but also by pollution of the ground Contamination on the ground finds its way into the water system by leaching
Diseases in Water
World Health Organization advises of all diseases are waterborne Common waterborne diseases are
Cholera, typhoid, and dysentery
Due to modern water treatment practices in the US and western world these diseases are not a problem there.
Three Types of US Water Pollution
Organic Contamination
Linked to various forms of cancer
Inorganic Contamination
Most notably metals such as lead Causes developmental problems for children
Radioactivity
Causes prenatal damage
Unintentional Pollution
Natural corrosion of old pipes Inadvertent runoff of agricultural chemicals
Examples of Water Pollution
Love Canal, NY Woburn, MA Parkersburg, WV Boston Harbor New York-New Jersey Shoreline
Boston Harbor
Antiquated and overloaded sewage system
Swimming through toilet paper, feces, sediment, sewage and petrochemical waste, grease balls, tampon applicators, and condoms
New York New Jersey Shoreline
Beaches plagued with toxic debris--medical waste, needles, IV tubing, catheter bags, vials of blood--some positive for AIDS Culprit are haulers trying to avoid costly transportation expenses and hospitals themselves illegally dumping medical waste
Air Pollution
Respiratory disease is the most rapidly increasing form of death in America Air Pollution comes from outside air and inside air
Forms of Air Pollution
Chemicals released in by industry Emission of greenhouse gases by industry and individuals alike Use of asbestos in building materials
Example of Chemical Release
Midland and Hemlock, MI
Dow Chemical released dioxin in emissions from chemical plant Dioxin levels 6 times that of Love Canal, NY
Environmental Racism
Toxic waste dumps often located in communities with high percentages of minority residents 1/3 of all such dumps that disposes of 50% of the nations hazardous waste site are located in 5 southern states Four sites that disposes of 60% of all hazardous waste from southern states are located in 3 predominately black zip codes The largest site is in Emelle, AL whose population is 79% black Concept of NIMBY
Toxic Terrorism
Exportation of dangerous chemical (mostly pesticides) to third world countries Exportation of hazardous waste
US cost $2,500 per ton foreign cost as little as $3 per ton
Construction of polluting factories
US firms have gone abroad due to cheap labor and relaxed if not existent pollution regulations In 1984 3,000 died and 300,000 injuried from a leaking tank at a Union Carbide factory in slum city of Bhopal India
The Superfund
Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) Appropriated 1.6 billion to start cleanups Parties responsible are to clean up site or pay government to do it Only waste disposal industry benefited Moved waste from point A to point B
Superfund Sites
Initially list 1,200 priority projects Actual number may exceed 10,000 sites General Motors alone has been linked to 200 sites
Brio Refinery at South Bend, TX
1957-1982 Oil refinery that eventually went bankrupt 1984 Designated a Superfund site January 1988 EPA recommended sludge be dug up and incinerated on-site 1988 200 homeowners filed suit 1989 Health survey disclosed lot of health problems 1992-1993 elementary school closed and buyout of home commenced October 1993 chemical emissions excavated sludge were draining into nearby Clear Creek January 1994 incinerator completed April 1994 work halted before incinerator used August 1995 only two of 687 homes still occupied in South Bend, TX
Superfund Failures
Since Superfund established companies have spent 4.2 billion on legal fees which is more than 1/3 of total expenditures for toxic cleanup
Superfund Enforcement
1980s lacked tough enforcement 1990s enforcement strengthened when prosecutors began going after executives instead of just corporations Federal sentencing guidelines provided for less judicial discretion
Superfund Penalties
Fines Restitution Probation Incarceration Nontraditional Sanctions
Fines
Based on aggravating or mitigating factors regarding the offenders actions
Simple Negligence v. Willful Negligence
Simple Negligence Violation result from a lack of due care Willful Negligence Requires actual knowledge of illegality or a reckless intent to further an illegal objective
Examples of Fines Imposed
Texaco fined $750,000 for failing to conduct test on off-shore drilling platform Ocean Spray Cranberries fined $400,000 for discharge of acidic waste water in Mass. Ashland Oil fined $2.5 million for collapse of storage tank in PA that discharged 700,000 gallons of diesel fuel in Ohio and Monongahela Rivers
Restitution
require Court guilty parties to pay victims for any loss caused by the offense or the performance of remedial measures to eliminate present and future harm associated with the offense
Probation
Entails "Environmental Audits" of offending companies for a determined period of time
Incarceration
1980s seldom incarcerated offenders The EPA now recognizes incarceration as its most powerful tool and most effective deterrent More than of all offenders went to prison in the 1990s
Nontraditional Sanctions
Court have ordered offenders to give money to various state and local environmental programs Asked offenders to place ads in paper apologizing for their actions Dow Chemical ordered to pay $100,000 to protect and restore the prairie chicken one of the most critically endangered of all native birds species
Laboratories That Cheat
In recent years a number of private labs have falsified pollution test results In some cases the labs have duped their own clients in order to cut costs In other cases the labs have falsified reports for their clients to curry favor
Examples of Laboratory Cheats
Water test for Lawrence, MA and Pittsburg, KS falsified Testing services for underground storage tanks in South Carolina called "Driveway Tests." Largest underground tank testing company performed phony tests at Federal sites across the country Houston firm falsified analysis of reformulated gas (cleaner gas) to make customer happy Texas company falsified air, soil, pesticides, nerve gas, and other hazardous materials at Superfund sites.
Workplace Exposure
20% of all cancer cases are attributed to workplace exposure The 1968 mine explosion in Farmington WV led to the passage of the "Occupational Safety and Health Act of 1970" The act established OSHA The Occupation Safety and Health Administration
Types of Workplace Exposure
Chemical exposure Unsafe mine operations Asbestos cases Cotton dust Radioactivity
Two Famous Workplace Exposure Cases
Allied Chemical and Kepone Scotia Coal Mine Disaster
Allied Chemical and Kepone
Kepone developed as a pesticide in 1950s By 1973 Allied knew of the problems with Kepone Allied established a stand alone company called Life Science Products in an abandoned gas station in Hopewell, VA Kepone airborne emissions everywhere in Hopewell Lots of people developed tremors By 1975 Life Sciences shutdown Life Science executive acquitted but Life Science convicted and fined 3.8 million
Scotia Mine Disaster
In 1976 in an uninspected portion of the mine mechanical equipment set off an explosion of untested air that contained combustible gas 15 Miner died Two days later another 11 Miners died from similar causes
Asbestos
A mineral found in rock that has been used in construction materials since the Roman Empire An additive to textured paint, pipe wrap, boarded and spray on insulation, ceiling and floor tiles, roofing shingles, wall palster, and cement Fibers break loose and become airborne.
Health Problems With Asbestos
Cause potentially lethal condition known as asbestosis, which scars the lungs, stifles breathing and impedes flow of oxygen to the blood. Also causes Mesothelioma a cancer of the linings of the lungs
Knowledge of Health Hazards of Asbestos
As early as 1924 scientists knew of problems with asbestos Johns-Manville, a giant in the industry, knew of problem in 1930 and by 1965 its own finding revealed 44% of workers at their plants had asbestosis In 1972 Johns-Manville decided it was cheaper to pay workmens compensation claims that to install proper ventilation system 1992 Johns-Manville filed for bankruptcy protection to halt lawsuits
Cotton Dust
cotton dust causes the lung disease Byssinosis or "Brown Lung." By 1980 35,000 textile workers in North and South Carolina afflicted Of the 35,000 cases only 320 received workers compensation awards and average award was $15,000 80% of North Carolina and 100% of South Carolina cases were litigated by textile owners However, 60% of mills in North Carolina and 80% of mills in South Carolina exceeded cotton dust limits of OSHA. Many 3 times the limit
Intimidation and Trickery of Textile Workers
Workers protesting conditions were intimidated or fired Local doctors in employ of textile companies
Examples of Radioactivity Exposure
In the 1940s young Navajos recruited to work in uranium mines. Government never told them of health risks From 1945 to 1953 military personnel and civilians also exposed Government never told them of health risks Rocky Flats whistleblower threatened, gloves sabotaged, run off the road
Karen Silkwood
Worked for Kerr-Mcgee Corp. Cimmarron Facility in Oklahoma Facility made highly radioactive plutonium fuel for nuclear reactors In first 4 years 17 exposure incident affecting 77 employees Silkwood herself had been exposed twice In 1974 she contacted the New York Times about Cimmarron and falsification of reports
Silkwood Continued
She had consolidated all her evidence in a large manilla folder On her way to a clandestine meeting with a reporter her car went off the road and she was killed Plutonium in lung and on bones. Clothes in closet were contaminated and had to be sealed In 1978 Kerr-McGee paid 10.5 million in damages to Silkwood Estate
Its Not Just Plutonium
Exposure to Beryllium is also very harmful Beryllium is a metal used to encase nuclear weapons Breathing the dust can cause Berylliosis, an uncureable lung inflammation and ulceration Many workers at private munitions factories and Federal facilities were exposed to Beryllium
Industrial Accidents
More than 6,000 fatal work injuries each year in the US including 70 adolescent deaths Coal Mining is a very dangerous occupation as are construction and steel making In Texas alone approximately 1,400 construction deaths in 1980s (average of 140 per year) Missing safety devices, inadequate equipment
Examples of Industrial Accidents
Tyson Foods Two workers killed in vat of decomposing chicken parts Bethlehem Steel at Sparrows Point, MD McWane in Birminham, AL
Bethlehem Steel at Sparrows Point
In one year there were 6 deaths and 5,304 accident-related injuries One injury for every 3.3 workers Dilapidated furnace system caused two carbon monoxide death and unshielded equipment accounted for many other inuries Maryland authorities back down after meeting with executives Companies always tempted to cut costs in maintenance
McWane in Birminham, AL
Company manufactures cast iron pipes in Alabama 500 violations since 1995 Complaining workers targeted for termination Workers maimed, burned, sickened, and killed Missing safety guards, mishandling of flammable materials, no respirators, lack of training Little enforcement activity by state/federal entities
Exporting Occupational Diseases
Asbestos plants moved to Mexico, Taiwan, South Korea, Venezuela, and Brazil Brazil eliminates pay increases if hazard decreased Mining and refining businesses also relocated Worker health hazards and pollution--the price for economic development
Early Regulation and Enforcement of OSHA
Reagan administration had a disdain for OSHA and its punitive enforcement policies Reagan appointed owner of frequently cited construction company as new chief administrator And rescinded rules put in place in the waning days of the Carter administration (Midnight Rules) Finding of "good faith" mistakes for many violations Purges of inspectors who wanted to strictly enforce the law
Regulation and Enforcement in the 1990s
Civil/administrative sanctions--1990s saw return of more adversarial stance OMB to Labor Department urged reducing worker protections, arguing that compliance lowers wages and higher paid workers would take better care of themselves Egregious multiplier and "repeated" policy
Criminal Sanctions of OSHA
OSHA must rely on Justice Department to bring charges OSHA has not recovered from Reagan/Bush deregulatory era--states have assumed much of worker safety oversight California even took on the film industry Criminal prosecutions may encourage choice of health and safety over short-term profits