Settlement of Clean Water Act Violations Aims to Prevent Future Oil Spills by Cargill Incorporated

(Lenexa, Kan., Aug. 11, 2014) - Cargill Incorporated, a privately held multinational corporation headquartered in Minnetonka, Minn., has agreed to settle allegations that it violated the Clean Water Act (CWA) at 2 different large oil storage facilities located in Blair, Neb., and Eddyville, Iowa.

Through the settlement with E.P.A. Region 7, Cargill will pay a civil penalty of $187,500 to the United States.

The Clean Water Act requires facilities that store large quantities of oil to develop a Facility Response Project (FRP) that outlines procedures for addressing "worst-case" discharges of oil. By being prepared and by conducting required response drills, facilities are better situated to prevent environmental harm from such releases. Each of Cargill's 2 facilities produces and stores in excess of one million gallons of oil. Combined, the 2 facilities have a total estimated storage capacity of in excess of seven million gallons.

"The Clean Water Act requires large oil storage facilities to have adequate response projects to prevent a spill from turning into a large-scale environmental disaster," said Karl Brooks, E.P.A. Region seven administrator. "The lack of a Facility Response Project for these facilities can have serious consequences for humans and the environment in the case of a spill. This settlement helps protect the communities of Blair, Neb., and Eddyville, Iowa, if spills were to occur."

E.P.A. identified the lack of a response Project during 2013 location visits at Cargill's facilities in Blair, Neb., and Eddyville, Iowa. Each facility required a Facility Response Project (FRP) because the storage capacity of its denatured ethanol tanks exceeded one million gallons. As a result of the visits, in June 2014 Cargill submitted to E.P.A. signed and effective FRPs.

The settlement resolves the FRP violations of the CWA by Cargill.

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