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Shipping Company Fined $1.75 Million For Dumping Oily Waste Off U.S. Coast
A Connecticut-based ship management company has confessed to unlawfully discharging oil-contaminated waste into U.S. waters near New Orleans. Eagle Ship Management LLC (ESM) pleaded guilty to violating the Act to Prevent Pollution from Ships (APPS). The pollution originated from the MV Gannet Bulker, a bulk carrier registered under a foreign flag and operated by ESM.
Court documents reveal that the illegal discharge occurred while the vessel was anchored close to the Southwest Passage of the Port of New Orleans, where the Mississippi River flows into the Gulf of Mexico. Should the court accept the plea agreement, ESM will face a hefty fine of $1.75 million and will be placed on four years of probation. During this probation period, ESM will undergo external audits by an independent technical expert.
The wrongdoing came to light after a crew member reported via social media on March 14, 2021, that the ship’s engine room had flooded, leading to the pumping of oil-contaminated bilge water overboard at night. This flooding created serious safety hazards, including risks of electric shock, power outages, and steering failures.
Investigations uncovered that approximately 39 cubic meters (about 10,303 gallons) of oily waste were improperly discharged without the necessary pollution prevention equipment. Furthermore, the crew failed to report the discharge as legally required.
In response to the whistleblower's report, the U.S. Coast Guard initiated an investigation, which revealed that the flooding was due to a botched repair attempt. It also became evident that the crew tried to conceal the incident. ESM acknowledged that both senior officials and crew members took numerous illegal actions to cover up the event, including threatening and penalizing the whistleblower, who was known to them.
The crew lied to Coast Guard officers, destroyed crucial evidence from the engine control room, and fabricated backdated personnel records to damage the whistleblower's credibility.
The chief engineer of the Gannet Bulker faced separate charges and has since been sentenced to one year and one day in prison for his role in the illegal discharge and for attempting to obstruct justice.
A representative from the Department of Justice’s Environment and Natural Resources Division stated that the company’s actions involved both deliberate pollution and a planned cover-up, both serious offenses under U.S. law. A Coast Guard Investigative Service official noted that their team remains committed to enforcing maritime environmental regulations and ensuring compliance with international pollution laws.
The Coast Guard Criminal Investigations Division (CGIS) Gulf Field Office and the Heartland District were both involved in the investigation. Sentencing for Eagle Ship Management LLC is set for October 16.
Reference: U.S. Department of Justice
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