EPA v. MILLARD REFRIGERATED SERVICES

Case summary

9/15/11 - REFERRAL TO DOJ. On August 23, 2010, the Millard Refrigerated Service warehouse in Theodore released approximately 32,000 pounds of anhydrous ammonia, to which exposure in high concentrations can be lethal, into the air after refrigeration equipment malfunctioned. The ammonia travelled directly over a site where ships responding to the BP oil spill in the Gulf of Mexico were being decontaminated, and where more than 800 people were working. The Mobile, Alabama, Emergency Management Agency ordered an evacuation of the surrounding area and a one mile shelter in place situation following the ammonia release. One hundred fifty-two people working at the site and on ships were treated for symptoms of ammonia exposure at hospitals in the Mobile area, four of whom were admitted into intensive care units. One Millard employee sustained injuries after briefly losing consciousness from ammonia inhalation. During its investigation of the warehouse after the ammonia release, EPA discovered that Millard failed to adequately address a well-known risk for ammonia production systems called hydraulic shock, which can cause catastrophic equipment failures. These failures can lead to hazardous releases of anhydrous ammonia. The company?s failure to address this risk, in addition to other deficiencies in its production and safety systems, amounted to 37 distinct violations of the Clean Air Act?s Risk Management Program and General Duty Clause. These requirements compel companies that store or use potentially-hazardous substances like ammonia to identify the hazards posed by their operation, design and maintain a safe facility, and minimize the consequences of any releases that might occur. EPA also discovered that Millard had two prior smaller ammonia releases caused by hydraulic shock, which should have signaled a need to take steps to prevent a catastrophic release like the one that occurred at the Theodore warehouse. EPA also found violations of the EPCRA and CERCLA reporting requirements for these violations. Millard sold the Theodore warehouse facility, which is no longer being operated as a refrigerated storage facility. 6/2/15 - STIPULATION OF SETTLEMENT ENTERED BY COURT. THERE IS NO ASSOCIATED INJUNCTIVE RELIEF OR SEP PROJECT BECAUSE THE FACILITY HAS BEEN SOLD AND IS NO LONGER BEING USED AS A REFRIGERATED WAREHOUSE FACILITY. THE ONLY REQUIREMENT OF THE STIPULATION IS FOR MILLARD TO PAY A CIVIL PENALTY OF $3,009,985.

Defendants (1)

• MILLARD REFRIGERATED SERVICES, LLCNamed in complaintNamed in settlement

Facilities (8)

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

• MILLARD REFRIGERATED SERVICES

  7730 DEER RIVER ROAD, THEODORE, AL, 36582-9360

  Registry ID: 110023014094

Statutes cited

• CERCLA 103A — Notification of Hazardous Reportable Quantity Release
• CAA 112R — General Duty/Accidental Release
• EPCRA 304 — Emergency Release Notification Section 313 Program
• CAA 112[R][1] — Prevention of Accidental Release/General Duty Clause
• CAA 112[R][7] — Prevention of Accidental Release/Risk Management Plans (RMPs)

Enforcement conclusions (1)

• MILLARD REFRIGERATED SERVICESentered 2015-06-02

  Primary law: CAA

  Federal penalty: $3,009,855

Timeline (8 milestones)

• 2011-09-15Referred To Dept Of Justice
• 2011-09-17Enforcement Action Data Entered
• 2012-09-14Supplemental Referral-Adding parties, counts
• 2015-04-07Complaint Filed With Court
• 2015-05-29Final Order Lodged
• 2015-06-02Concluded
• 2015-06-02Final Order Entered
• 2015-07-10Enforcement Action Closed