Crystal Geyser faces millions in fines for arsenic handling
A federal grand jury has returned a 16-count indictment charging three companies, including the bottled water producer that operates under the name Crystal Geyser, with violating the Resource Conservation and Recovery Act (RCRA) and the Hazardous Materials Transportation Act (HMTA). Charges center around the alleged failure of the companies to disclose information regarding arsenic in wastewater transported from Crystal Geyser's Olancha plant just off Highway 395 in 2015.
The indictment charges three companies:
CG Roxane, LLC (“Crystal Geyser”), a limited liability corporation that does business under the name “Crystal Geyser” and produces bottled drinking water in Olancha, California;
United Pumping Services, Inc. (“United Pumping”), a corporation located in the City of Industry that provides transportation services for customers needing transportation of hazardous and nonhazardous waste; and
United Storm Water, Inc. (“United Storm Water”), a corporation located in the City of Industry that provided environmental and lake draining services.
The investigation and indictment in this case focused on alleged violations involving Crystal Geyser’s wastewater, not the safety or quality of Crystal Geyser’s bottled water.
According to the grand jury's indictment, Crystal Geyser would draw water from natural sources that contained naturally occurring arsenic. The company would use sand filters to reduce the concentration of arsenic in order to meet federal drinking water standards. The company would flush the filters using a hydroxide and water solution, creating thousands of gallons of arsenic-contaminated wastewater in the process.
The indictment alleges Crystal Geyser discharged the arsenic-contaminated wastewater into a manmade pond nearby. In 2014, tests by the California Department of Toxic Substances Control (DTSC) showedd the wastewater in the pond constituted a hazardous waste. Crystal Geyser then stopped discharging the wastewater into the pond.
The indictment further alleges in March 2015, Crystal Geyser hired United Pumping and United Storm Water to transport several thousand gallons of high pH, arseninc-contaminated wastewater to a hazardous waste facility in Los Angeles County. Manifests for the shipment allegedly did not disclose information about the arsenic content, contrary to legal requirements.
According to the grand jury indictment, in April 2015, DTSC informed Crystal Geyser the wastewater in the pond was hazardous waste and instructed the company to remove the wastewater from the pond and to transport it properly to an authorized hazardous waste facility.
Again, according to the indictment, Crystal Geyser hired United to drain and transport the pond's wastewater. United transported the wastewater to a facility in Fontana that was not permitted to treat hazardous waste, without the proper manifests for the shipments.
“Our nation’s environmental laws are specifically designed to ensure that hazardous wastes are properly handled from beginning to end – from the point of generation to the point of disposal,” said United States Attorney Nick Hanna. “The alleged behavior of the three companies charged in this indictment undermines that important objective and jeopardizes the safety of our community.”
Each of the three defendants faces a statutory maximum fine of $8 million if convicted on all of the 16 counts in the indictment.
“EPA and its law enforcement partners are committed to the protection of public health and safety,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in California. “This case was opened due to the hazards posed by illegal management and transportation of hazardous wastes. Today’s charges demonstrate that those who refuse to comply with the law will be held to account and prosecuted.”
The investigation is being conducted by the United States Environmental Protection Agency Criminal Investigations Division and the United States Department of Transportation’s Office of Inspector General, with assistance from the California Department of Toxic Substances Control.
The case is being prosecuted by Assistant United States Attorneys Dennis Mitchell and Erik M. Silber of the Environmental and Community Safety Crimes Section.