EPA v. Ditmas Oil Associates, Inc.

Case summary

'Ditmas Oil Associates Inc. failed to file Form R reports for the calendar year 1998 and 1999 for benzene, ethylbenzene, MTBE, hexane, toluene, 1,2,4 trimethylbenzene, xylene, cumene and t-butyl alcohol in a timely manner. The case was issued by ORC.' CCDS - Ditmas Oil Associates, Inc. ( Ditmas ), is the owner and operator of a facility in Brooklyn, New York. Respondent's facility processed toxic cheicals in sufficient amount to subject it to the reporting requirements of EPCRA Section 313. On the basis of EPA's July 20, 2000 inspection, and follow-up inquiries, Complainant determined that Respondent violated EPCRA and the regulations promulgated thereunder. Respondent's violations concerned failures to submit Forms R in a timely manner for the reporting years 1998 and 1999. On September 6, 2002, Respondent was charged with eighteen (18) reporting failures and EPA proposed a penalty of $444,157. An informal settlement conference was held on January 21, 2003. Based on discussions at that meeting, and numerous subsequent discussions and correspondence, the parties agreed to settle this matter and EPA recalculated its proposed penalty. The recalculated proposed penalty was $297,848 and it was based on the fact that Respondent employed fewer than 50 people. Originally, based on a review of available Dun & Bradstreet Reports, EPA had reason to believe that Respondent, including its parent, employed in excess of 450 people. After meeting with Respondent and after EPA's receipt and review of additional information, EPA determined that in fact Ditmas employed fewer than 50 people (and had corporate sales in excess of ten million dollars) which placed it in a lower category (category B under the EPCRA Penalty Policy)in terms of the appropriate proposed pealty. Respondent filed for bankruptcy protection in December 1992, and did not emerge until August, 1999. Respondent then struggled to compete in the oil distribution businedss bu ultimately decided to shut its doors in late 2003. Respondent is now in the process of selling off its inventory and it has given up its license to distribute diesel motor fuel. Respondent intends to dismantle all its above-ground storage tanks and plans to lease its facility for warehousing purposes. Respondent will no longer process toxic chemicals. The EPA complaoint was filed after Respondent emerged from the protection of the bankruptcy court. Because Ditmas continued to operate and to process toxic chemicals in 1998 and 1999 while in bankruptcy, Ditmas may be charged with its failures to comply with its reporting requirements in 1999 and 2000. Respondent conceeded that it failed to file Forms R for various chemicals in 1999 and 2000. Complainant filed a motion for an accelerated decision as to Respondent's liability for its admitted failures. Complainant's motion was granted and it covered fourteen (14) of the eight-teen (18) counts in the Complaint. Subsequent to the issuance of the Complaint, EPA continued to gather evidence showing that Respondent had also failed to file Forms R in 2001 and 2002. As a condition of settlement, Respondent agreed to pay a penalty of $197,848 for it failures to file Forms R in 1999 and 2000 and EPA agreed to include in the settlement Respondent's additional failures to file Forms R in 2001 and 2002 as well. Respondent filed its Forms R in 2003 on time and is required by the Agreement to file its Forms R on time in 2004 (they are due July 1,2004). As noted above, Respondent has struggled with its business over the past twelve years. The penalty agreed to by the parties ($197,848) is a sizable one for this type of case (indeed it exceeds the sum total of all EPCRA penalties assessed by ALJs in each of the past three years in the country), but it is appropriate given the violations here, the large volume of toxic chemicals processed and the length of time Respondent failed to file timely Forms R. Based on the above facts, there is s

Defendants (1)

• Ditmas Oil Associates IncNamed in complaintNamed in settlement

Facilities (1)

• DITMAS OIL ASSOCIATES INC

  364 MASPETH AVENUE, BROOKLYN, NY, 11211

  Registry ID: 110001589816

Statutes cited

• EPCRA 313 — Toxic Chemical Release Reporting (TRI)

Enforcement conclusions (1)

• Ditmas Oil Associates Incentered 2004-01-22

  Primary law: EPCRA

  Federal penalty: $197,848

Timeline (4 milestones)

• 2002-09-20Complaint Filed/Proposed Order
• 2002-10-11Enforcement Action Data Entered
• 2004-01-22Enforcement Action Closed
• 2004-01-22Final Order Issued