Oil Company Phillips 66 Indicted for Allegedly Violating Clean Water Act

3 days ago 5

Phillips 66, a Texas-based oil company, was indicted by federal prosecutors this week for allegedly violating the Clean Water Act in the state of California.

The Indictment

The U.S. Department of Justice has accused the Texas-based company of releasing hundreds of thousands of gallons of industrial wastewater contaminated with excessive levels of oil and grease.

Prosecutors allege that the company discharged wastewater from its Carson oil refinery into the Los Angeles County sewer system in 2020 and 2021, failing to report the violations.

"Phillips is charged with two counts of negligently violating the Clean Water Act and four counts of knowingly violating the Clean Water Act," the U.S. Attorney's Office in the Central District of California said. "The company is expected to be arraigned in the coming weeks in United States District Court in downtown Los Angeles."

The company could face up to five years of probation for each count, along with fines totaling a maximum of $2.4 million.

Oil refinery
The sun begins to set beyond the Phillips 66 Los Angeles Refinery Wilmington Plant on November 19, 2024, in Wilmington, California. On November 21, 2024, federal prosecutors announced an indictment against Phillips 66 over allegations... Mario Tama/Getty Images

"Protecting our environment is key to protecting our community," United States Attorney Martin Estrada said in the indictment announcement. "Just like the rest of us, corporations have a duty to follow the law, so when companies contaminate, they must be held accountable. My office will continue to be vigilant in safeguarding our natural resources for all to enjoy."

An arraignment date has yet to be scheduled, and the company's media relations department did not respond to requests for comment on Thursday.

"Illegally discharging pollutants into the sewer system violates the Clean Water Act," Special Agent in Charge Kim Bahney of the U.S. Environmental Protection Agency's Criminal Investigation Division said. "The charges today illustrate EPA's commitment to protecting the environment and ensuring accountability for those that neglect or fail to abide by our nation's environmental laws."

The U.S. Attorney's Office in the Central District of California said that on November 24, 2020, Phillips 66 Carson refinery "discharged to the Los Angeles County Sanitation Districts (LACSD)—which manages the county's sewer system—industrial wastewater containing a concentration of oil and grease more than 300 times the concentration allowed in its permit," during a two-hour period.

Phillips 66

Phillips announced last month that it plans to shut down its Southern California refinery by the end of 2025, citing market challenges. The facility represents approximately 8 percent of California's refining capacity, according to the state's Energy Commission.

The company also runs a refinery near San Francisco, which contributes roughly 5 percent of California's total refining capacity, according to the state Energy Commission.

This article includes reporting from The Associated Press.

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Matthew Impelli

Matthew Impelli is a Newsweek staff writer based in New York. His focus is reporting social issues and crime. In ... Read more

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