Ammonia pipeline firm pays $1 M criminal penalty

Mid-America Pipeline Co. LLC pleaded guilty Sept. 3 to negligently releasing 200,000 gallons of ammonia into a Kansas creek and killing 25,000 fish. The company agreed to pay a $1 million criminal penalty. In October 2004, the pipeline, operated by Mid-America, ruptured approximately six miles west of Kingman, Kan., releasing more than one million pounds of ammonia.

“Mid-America Pipeline is pleased to resolve these issues related to the incident, which was determined by federal investigators to have been caused by third-party damage and resulted in no personal injuries,” said James Collingswoth, Mid-America president. “In conjunction with the company’s misdemeanor plea agreement, Mid-America has implemented operational changes which, according to the U.S. Environmental Protection Agency, correct the conditions that led to the violation.”

“The ruptured pipe created a vapor cloud forty feet high, and caused a number of residents to evacuate their homes,” said U.S. Attorney Eric Melgren. “When liquid ammonia flowed into a 10-mile stretch of a tributary of Smoots Creek, more than 25,000 fish were killed.”

Approximately 204,000 gallons of ammonia – almost 5,000 barrels – were released into Smoots Creek. Several endangered species were among the fish killed. Melgren said Mid-America failed to provide correct information to the National Response Center and local responders about the magnitude of the release. As required by law, the company notified the National Response Center, but incorrectly reported that only 20 gallons of ammonia had been released into the creek. The company did not submit a revised notification until about six weeks after the release. Based on the incorrect information provided to federal authorities, the release was not considered to be an emergency, and responders did not report to the scene until more than 24 hours later. By the time emergency responders appeared on the scene, the ammonia had spread through at least 12 miles of the stream.

“Failure to accurately report spills of toxic chemicals weakens the EPA’s ability to effectively respond to chemical incidents,” said Granta Nakayama, EPA’s assistant administrator for enforcement and compliance assurance. “In this case, the defendant’s negligence contaminated a creek and killed 25,000 fish.”

Federal law requires that companies immediately notify the National Response Center in the event of a release of a chemical over certain threshold amounts. For ammonia, companies must report any releases over 100 pounds, which is equivalent to approximately 15 gallons.

The company pleaded guilty to negligently violating the federal Clean Water Act under 33 USC 1319(c)(1). The criminal penalty will be paid into the Oil Spill and Hazardous Substances Clean-Up Trust Fund.

Mid-America, which operated the pipeline and has already paid the fine, is owned by Enterprise Products Co., Houston. The actual pipeline itself is owned by Magellan Midstream LP, Tulsa.