Rowan Cos. Inc. has pleaded guilty to three felonies involving the discharge of pollutants and garbage into the Gulf of Mexico from the Rowan-Midland drilling rig, the US Department of Justice reported.
Nine employees also filed guilty pleas to related charges. Although the company sold the Rowan-Midland rig in January, the discharges were made in 2002-04. Rowan and its employees pleaded guilty Oct. 9, 2006, in federal court in Beaumont, Tex.
A government investigation revealed that Rowan employees discharged waste hydraulic oil mixed with water, used paint, paint cans, and other pollutants and garbage into the gulf and failed to notify the government of violations of the Clean Water Act (CWA) and the Act to Prevent Pollution from Ships (APPS).
The company will pay a $7 million criminal fine, along with community service payments totaling $1 million to five state government enforcement organizations for environmental training, education, and enforcement coordination.
Rowan of Houston also provided a community service payment of $1 million to the National Marine Sanctuaries Foundation to be used for preservation and protection projects at the Flower Garden and Stetson Banks National Marine Sanctuary off Texas and Louisiana.
As part of a plea agreement, Rowan will be subject to 2 years probation during which time it will reorganize its corporate structure to add an environmental division and implement a comprehensive environmental compliance plan for its rigs.
In cooperation with the US Environmental Protection Agency and the Coast Guard, Rowan will develop new sandblasting techniques and help establish new industry standards for the minimization and containment of sandblasting debris over water.
Employees plead guilty
Charges associated with these violations were filed in the US Eastern District of Texas. In the US Eastern District of Louisiana, Rowan pleaded guilty to one CWA felony count for discharging pollutants into the Sabine River as a result of sand blasting operations used to clean the rig in Port Fourchon in 2004.
Nine supervisory employees of Rowan pleaded guilty to charges related to Rowan’s violations. Carl Smith, James Rawson, Warren James, and Randy Hoover each pleaded guilty to negligently discharging pollutants and agreed to pay a $2,500 fine.
David Burcham and Murphy Comardelle each pleaded guilty to a failure to report knowledge of a felony regarding illegal discharges of waste oil and agreed to pay $5,000 in criminal fines.
Terry Glen Fox and Michael Friend pleaded guilty to misdemeanor charges for negligently discharging waste oil and agreed to pay $2,500 in fines. Michael Freeman pleaded guilty to a felony violation for knowingly discharging waste oil and faces a maximum fine of $250,000, the exact amount to be determined by the court.