Evergreen to Pay Largest-Ever Penalty for Concealing Vessel Pollution

[The Straight Story]

Evergreen to Pay Largest-Ever Penalty for Concealing Vessel Pollution- Container Shipping Company to Pay $25 Million
Contact: EPA, 202-564-4355; DOJ, 202-514-2007; TDD, 202-514-1888



(Washington, D.C.-April 4, 2005) The United States Attorneys from five judicial districts with major ports today announced criminal charges against Evergreen International, S.A. (Evergreen), one of many Evergreen-related companies involved in the container ship business. Under the terms of a plea agreement, Evergreen will pay $25 million, the largest-ever amount for a case involving deliberate vessel pollution, and plead guilty to felony charges brought in Los Angeles; Newark, N.J.; Portland, Ore.; Seattle; and Charleston, S.C.

Evergreen pleaded guilty today to 24 felony counts and one misdemeanor five counts from each federal district involved in the case for concealing the deliberate, illegal discharge of waste oil and for a negligent discharge in the Columbia River. The charges include making false statements, obstruction of Coast Guard inspections, failing to maintain an accurate Oil Record Book, and one negligent violation of the Clean Water Act relating to the discharge in the Columbia River. Following the guilty pleas, U.S. District Judge Terry J. Hatter, Jr. ordered the company to pay $25 million to be divided equally among the five judicial districts involved. Of this amount, $10 million will be directed to environmental community service projects in each district.

"The deliberate and purposeful pollution of our oceans and America's waterways must be met with strict enforcement," said Deputy Attorney General James Comey. "This penalty has secured justice against Evergreen and provided a victory for all Americans who enjoy and respect our environment. I want to thank the Justice Department's Environmental Crimes Section for their hard work and the U.S. Attorneys from the Central District of California,New Jersey, Oregon, South Carolina and the Western District of Washington, along with the EPA and Coast Guard whose efforts made this agreement possible."

Engine room operations on board large oceangoing vessels generate large amounts of waste oil. International and U.S. law prohibit the discharge of waste oil without treatment by an oil water separator a required pollution prevention device. The law also requires all overboard discharges be recorded in an Oil Record Book, a required log which is regularly inspected by the Coast Guard. In May 2001, the U.S. Coast Guard discovered Evergreen was using bypass pipes aboard their ships to illegally discharge waste oil into the ocean without treating it in an oil-water separator. The discharge of oil and other toxic petroleum-related wastes can cause significant harm to marine life.

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