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theHandpuppet

(19,964 posts)
Tue Jul 8, 2014, 11:22 AM Jul 2014

Wow! A whopping $11,000 fine for poisoning 300,000 people!

What will our capitalist masters think of next??

The Charleston Gazette
Charleston, WV
Monday, July 7, 2014
OSHA fines Freedom $11K in chemical spill
By From staff, wire reports

A federal agency has fined the company that spilled chemicals into West Virginia’s largest drinking water supply $11,000 for a pair of workplace safety violations.

The Labor Department’s Occupational Safety and Health Administration fined Freedom Industries $7,000 for keeping storage tanks containing crude MCHM behind a diked wall that was not liquid tight. On Jan. 9, roughly 10,000 gallons of MCHM leaked from one of the tanks and through the riverside diked wall and left 300,000 residents without clean water for days.OSHA also fined Freedom Industries $4,000 for failing to have standard railings on an elevated platform.

Inspectors classified both of those citations as “serious,” meaning the workplace hazards could cause an accident or illness that would most likely result in death or serious physical harm.

OSHA also issued to Freedom one “other-than-serious” citation, alleging the company did not properly label one of its chemical storage tanks at the Elk River site. OSHA said that one of the tanks — not the one that leaked on Jan. 9 — was labeled as containing glycerin, when it actually contained MCHM....

- See more at: http://www.wvgazette.com/article/20140707/GZ01/140709509/1419#sthash.DlqXvG4p.dpuf

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Wow! A whopping $11,000 fine for poisoning 300,000 people! (Original Post) theHandpuppet Jul 2014 OP
Federal agencies need to be able to levy far bigger fines. Erich Bloodaxe BSN Jul 2014 #1
the fine should be multiples of the cost to maintain it in the first place elehhhhna Jul 2014 #2
The water is still poisoned Warpy Jul 2014 #3
And since they've already declared bankruptcy (how convenient)... theHandpuppet Jul 2014 #6
What a sad joke abelenkpe Jul 2014 #4
But ... but ... but ... government regulations are killing American businesses! earthside Jul 2014 #5
Regulations? Bah! theHandpuppet Jul 2014 #7
Federal fines for egregious Kelvin Mace Jul 2014 #8
I think that's an excellent suggestion. theHandpuppet Jul 2014 #9
Now, now. Orrex Jul 2014 #10
I'd heard about that. theHandpuppet Jul 2014 #11
He might have to wash the Governor's windows. Enthusiast Jul 2014 #20
Ridiculous corruption. nt stillwaiting Jul 2014 #12
Fines are not adequate. RoccoR5955 Jul 2014 #13
This is how the game is played theHandpuppet Jul 2014 #15
That's 4 cents per poisoning. KurtNYC Jul 2014 #14
And if the owners had a different color of skin, they'd be in Gitmo. sinkingfeeling Jul 2014 #16
Prison at least. Enthusiast Jul 2014 #19
Corporate death penalty please. JEB Jul 2014 #17
Yes, that is one hefty fine. Enthusiast Jul 2014 #18
For regulations to work, violations must bring serious consequences. Fines must be hefty. tclambert Jul 2014 #21
But what happens when the company just avoids the fines by declaring bankruptcy? theHandpuppet Jul 2014 #24
Corporations were formed to avoid legal liability. The laws clearly protect them too much. tclambert Jul 2014 #27
All excellent points! theHandpuppet Jul 2014 #28
May I suggest a slight correction? mahatmakanejeeves Jul 2014 #22
To be honest, OSHA was all part of this comedy of (tragic) errors theHandpuppet Jul 2014 #25
OMG, a classic case of government over-reach! Jackpine Radical Jul 2014 #23
Not bad. Treant Jul 2014 #26
OSHA cannot fine for 300K people, only workplace violations endangering workers. freshwest Jul 2014 #29
Thanks for taking the time to compose such a cogent and informative post theHandpuppet Jul 2014 #33
Failure in terms of ensuring that the US public is able to remain healthy and safe is truedelphi Jul 2014 #34
This is great information theHandpuppet Jul 2014 #35
Appalachia group and community rights. Got it. truedelphi Jul 2014 #36
Ok that's for the workplace hootinholler Jul 2014 #30
If California can dissolve companies, so can other states. ancianita Jul 2014 #31
Freedumb™ GeorgeGist Jul 2014 #32

Erich Bloodaxe BSN

(14,733 posts)
1. Federal agencies need to be able to levy far bigger fines.
Tue Jul 8, 2014, 11:27 AM
Jul 2014

Ones that are actually proportional to the amount of damage that modern corporations can cause, not ones based on numbers from 50 or more years ago.

Warpy

(111,224 posts)
3. The water is still poisoned
Tue Jul 8, 2014, 11:35 AM
Jul 2014

It seems like the fine should be 11 billion, shared by the bosses, the owners, and any regulator who passed their operation off as legal. The only way that fine could be reduced is if the owners, bosses and crooked regulators worked together to clean it up while supplying bottled water services to affected households.

That's how fines should work, destroying the companies and the people who own them unless things are made right.

I'm against the death penalty except when it comes to corporate "persons." There are some out there that should be fined out of existence, their charters withdrawn and their crooks jailed.

The slap on the wrist has just never worked.

theHandpuppet

(19,964 posts)
6. And since they've already declared bankruptcy (how convenient)...
Tue Jul 8, 2014, 11:54 AM
Jul 2014

... even this pathetic pittance may be a moot point. The deck is stacked, my friends. Check this out:

The Times West Virginian
June 28, 2014
Judge defends secrecy in spill company bankruptcy
Associated Press Sat Jun 28, 2014

CHARLESTON — A judge has defended his decision to let the company that spilled chemicals into West Virginia’s biggest drinking water supply file some financial statements out of public view.

According to The Charleston Gazette, Bankruptcy Judge Ronald Pearson in Charleston wrote Thursday that Freedom Industries should provide periodic updates on the Charleston spill site cleanup.

“Given the public nature of this case, the court feels a responsibility to ensure the public that the environmental issues are being dealt with responsibly and that the bankruptcy process continue with full recognition and compliance with laws that protect the environment and public safety, all of which are to be adhered to in this and any bankruptcy case,” Pearson wrote.

In April, Pearson signed an order requiring periodic future budget plans, but letting them remain shielded from disclosure from the public. The spending plans give the court an idea of what Freedom expects to spend, how much cash they could have and what will be available for environmental cleanup....

- See more at: http://www.timeswv.com/westvirginia/x1736689010/Judge-defends-secrecy-in-spill-company-bankruptcy#sthash.3i5RTDgH.dpuf

abelenkpe

(9,933 posts)
4. What a sad joke
Tue Jul 8, 2014, 11:39 AM
Jul 2014

These pathetic small fines just make polluting and irresponsible behavior profitable. Same thing in finance. The fines should be much much larger.

earthside

(6,960 posts)
5. But ... but ... but ... government regulations are killing American businesses!
Tue Jul 8, 2014, 11:39 AM
Jul 2014

Actually, I can't think of a better example than this development to demonstrate how government's from local to federal are essentially owned by the corporate plutocracy.

theHandpuppet

(19,964 posts)
7. Regulations? Bah!
Tue Jul 8, 2014, 12:03 PM
Jul 2014

I've been posting regularly about this whole mess at Appalachia group.

Here are just a few posts that illustrate just what a total farce this is. It's the people of Appalachia who are paying for it, all with the governments help.

New Name, Same Game: How the system works for Freedom Industries
http://www.democraticunderground.com/1272244

DEP never saw Freedom's pollution control plans (WV spill)
http://www.democraticunderground.com/10024431191

Freedom Industries was never inspected by OSHA until Friday
http://www.democraticunderground.com/10024317509

 

Kelvin Mace

(17,469 posts)
8. Federal fines for egregious
Tue Jul 8, 2014, 12:05 PM
Jul 2014

acts need to be a percentage of annual sales, not set amounts. Once people have to pay 2% of their annual sales per violation, they will clean their act up in a hurry.

theHandpuppet

(19,964 posts)
9. I think that's an excellent suggestion.
Tue Jul 8, 2014, 12:13 PM
Jul 2014

Unfortunately, the people who run these companies will find new and creative ways to avoid paying altogether. With Freedom Industries, they just declared bankruptcy and started up a new company with the same officials who ran the old one! Doncha just love it?

Orrex

(63,191 posts)
10. Now, now.
Tue Jul 8, 2014, 12:22 PM
Jul 2014

A guy in Ohio who dumped fracking wastewater into a tributary for the Mahoning River received a very stiff sentence.

Three years probation and 300 hours of community service.

That'll learn him!

 

RoccoR5955

(12,471 posts)
13. Fines are not adequate.
Tue Jul 8, 2014, 12:37 PM
Jul 2014

This company has to be put out of business.
WV has the death penalty. If corporations are people, shouldn't this corporation get the death penalty?

tclambert

(11,085 posts)
21. For regulations to work, violations must bring serious consequences. Fines must be hefty.
Tue Jul 8, 2014, 01:08 PM
Jul 2014

They should be calculated based on the revenues of the offending company. Not just the immediate subsidiary, but the top of the corporate pyramid. If you want an industry to follow the rules rather than ignore them and except the cost of fines, the fines have to hurt. They have to be on the order of 1% of gross revenues.

theHandpuppet

(19,964 posts)
24. But what happens when the company just avoids the fines by declaring bankruptcy?
Tue Jul 8, 2014, 01:24 PM
Jul 2014

That's what happened in the case of Freedom Industries. They just declared bankruptcy and started up a new company with the same old officials running it. The courts assist by helping Freedom suppress public scrutiny of their assets. So who pays even this pathetically small fine in the end? It's the people who will end up paying -- the cost of the cleanup, the cost to their environment, and at the cost of their health.

tclambert

(11,085 posts)
27. Corporations were formed to avoid legal liability. The laws clearly protect them too much.
Tue Jul 8, 2014, 01:43 PM
Jul 2014

To be clear, the corporation protects the actual human persons responsible for harmful actions and decisions. The corporation faces fines and legal damages, but the CEO walks away unharmed.

In general, the question of failing businesses worries me. Many toxic waste sites were orphaned by businesses that went out of business. During their death spiral, they often try at some point to cut costs by dispensing with safety procedures, such as "temporarily" storing waste in steel drums on the back lot. They know it's not safe in the long term, but the plan is to take proper care of it AFTER the company's financial problems turn around. But if the business continues to flounder, conditions deteriorate, and they may take measures such as raiding the company's pension money. When upper management realizes they cannot save the company, they turn to saving themselves with golden parachutes, and big bonuses (for handling the stress of dealing with failure). When the company finally dies, the back lot is full of rusting barrels leaking toxic waste, the employees learn their pension money was stolen, and the C-level executives walk away rich.

Perhaps we need to re-visit the entire concept of the corporation. How did the world function before corporations existed? Did the people who ran businesses actually have to take responsibility and accountability for their actions? Maybe we should go back to that.

mahatmakanejeeves

(57,376 posts)
22. May I suggest a slight correction?
Tue Jul 8, 2014, 01:21 PM
Jul 2014

OSHA did not assess Freedom Industries a "$11,000 fine for poisoning 300,000 people!" According to the article, it fined Freedom Industries "$11,000 for a pair of workplace safety violations." That's because that's what OSHA's jurisdiction is: workplace safety.

The matter of "roughly 10,000 gallons of MCHM {leaking} from one of the tanks and through the riverside diked wall and {leaving} 300,000 residents without clean water for days," is a matter for another agency. I'm sure that the EPA, to name one such agency, is paying attention to this situation too.

Expect additional fines, but OSHA can only take care of things that are within its jurisdiction. It's explained right here:

All About OSHA

OSHA’s Mission
Congress created OSHA to assure safe and healthful conditions for working men and women by setting and enforcing standards and providing training, outreach, education and compliance assistance.

Under the OSHA law, employers are responsible for providing a safe and healthful workplace for their workers. For more information, visit OSHA’s website at http://www.osha.gov.

theHandpuppet

(19,964 posts)
25. To be honest, OSHA was all part of this comedy of (tragic) errors
Tue Jul 8, 2014, 01:34 PM
Jul 2014

I appreciate your clarification of who's responsible for what here (which is accurate), but there wasn't any government agency that didn't fall down on the job with regard to this spill. If I can refer you to...
http://www.democraticunderground.com/10024317509

and a portion of the article...
The U.S. Occupational Safety and Health Administration, for example, sent out a news release to remind employers that they must provide potable water for drinking and hand-washing in the workplace. OSHA said it started an inspection Friday morning at Freedom Industries to "assess any potential worker safety and health issues related to the incident." But the release also noted that the operation "does not have OSHA history," meaning -- as confirmed by a review of OSHA data -- that federal workplace safety officials have never inspected the site. OSHA inspectors started to examine the facility in November 2009 as part of a program of special emphasis looking at accidents that prompted amputations, records show. But they discovered that Freedom Industries was in the wrong industry classification for that program, and they never did the inspection, said OSHA spokeswoman Lenore Uddyback-Fortson. Terri White, a regional spokeswoman for the U.S. Environmental Protection Agency, said in a prepared statement that the EPA had deployed personnel to assist with water sampling and to offer "additional assistance" to the state. But White refused to make any EPA officials involved in the effort available for an interview. - See more at: http://www.wvgazette.com/News/201401110085?page=2&build=cache#sthash.BZoZ9Nsf.dpuf

The people of West Virginia were betrayed and continue to be betrayed at every turn by government agencies and courts that are supposed to protect their interests. It is they who will, in the end, pay for this catastrophe.

Jackpine Radical

(45,274 posts)
23. OMG, a classic case of government over-reach!
Tue Jul 8, 2014, 01:23 PM
Jul 2014

Vote Tea Party & elect some politicians with the guts to drown OSHA in a bathtub full of MCHM!

Treant

(1,968 posts)
26. Not bad.
Tue Jul 8, 2014, 01:42 PM
Jul 2014

That's almost four cents a poisoning! For wholesale poisoning rates, that's really pretty reasonable.

/snark

freshwest

(53,661 posts)
29. OSHA cannot fine for 300K people, only workplace violations endangering workers.
Tue Jul 8, 2014, 01:53 PM
Jul 2014

OSHA is an arm of the Labor Department and its powers are narrow. That fine was not connected to the effects of the spill on the general population, but to conditions at the site that could have hurt workers there. The OP shows no harm to them.

That being said, workers are always the 'canary in the coal mine' on all environmental toxins that the public will learn about after it's too late. The OCAW was a strong voice for those first effected in the 1970s, and kept good records of what was being done in the rural areas where they employed locals and discarded them later. A prominent name would be Dow Chemical whose sick workers were too weak to fight back, they needed a union for that. This was prior to the 'Reagan Revolution' and it has been neutered along with most unions.

The real problem in the federal government is not simple corruption or venality, it is starvation. I worked in an era when the alphabet agencies had real power to punish these malefactors, and just the threat of calling them was effective. You called their hotline and they were there with bells on. Now there is hardly anyone to contact, they have been rendered toothless.

The OSHA, EEOC, EPA and others with full staff not only fined companies, they changed working conditions and the larger environment for the better.

That slowed with Reagan, who went on the path of aggressively defunding, denigrading and also infiltrated the agencies with corporate actors. Then came Norquist and the Gingrich Revolution, and we have lived under their undermining all the agencies and regulations ever since. So I get a bit tired of the knee jerk thinking, pushed so well by media, that the federal government is so corrupt.

No, it is dying for lack of voters who defend its power to enforce good regulations, while many of those same voices will decry being told to do anything that costs them tax money or anything. In other words, regulation is the what the right calls 'enslavement' but NOT having it FUNDED is putting us all under the thumb of corporations.

This is due to majority rule in this country taking it where we don't like. But the majority of voters who showed up are satisfied.

Imagine the scenario described in this article going down in the days of the Iran Contra or the Watergate hearings. This would have never been permitted under the rule of the Democratic Party, be they blue dog or of other persuasion. Many times, it's simply about the numbers:

Company Responsible For West Virginia Chemical Spill Skips Congressional Hearing

By Emily Atkin February 10, 2014

Exactly one month and a day after 10,000 gallons of chemicals spilled into West Virginia’s water, members of the U.S. House Transportation and Infrastructure committee on Monday traveled to the state’s capital city, ostensibly to ask state leaders the still-unanswered questions surrounding the leak. There are many.

Perhaps the most important party that could provide answers would have been Freedom Industries, the company whose chemical storage tanks leaked a coal-cleaning chemical called crude MCHM into the water. Company president Gary Southern had been invited to testify, but in the end, did not show up.

“I find that extremely telling,” said Rep. Shelley Moore Capito (R-WV). “Freedom Industries’ decision not to testify today compounds its gross misconduct, and is an absolute affront to every person impacted by its spill.”

Freedom Industries’ decision not to show up to a hearing that otherwise housed every party that should be held accountable for the spill (Representatives from West Virginia American Water, West Virginia’s Department of Environmental Protection, and the U.S. Chemical Safety Board showed up, to name a few) is depressingly typical, and a painful reminder of the company’s non-presence throughout the month-long ordeal.

“They’ve been basically out of the picture since day one of this crisis, even though they were the cause of the crisis,” Executive Director of West Virginia Citizen Action Gary Zuckett, told ClimateProgress, recalling the events of the week following the spill. “The first thing that [Freedom] did was file for bankruptcy. The second thing they did was open a new corporation to loan the first corporation money.”


http://thinkprogress.org/climate/2014/02/10/3273201/freedom-chemical/

The process of redress for the 300K could not be addressed by OSHA. Or even the EPA:

Indeed, after being being criticized for failing to immediately report the chemical leak, and faced with lawsuits from those who had been harmed, Freedom filed for Chapter 11 bankruptcy. The bankruptcy shielded it from lawsuits, and since then the company has been increasingly opaque — only breaking its silence to revise spill numbers (last week it said 10,000, not 7,500 gallons, had spilled) and admit that more than one chemical had actually spilled.


It is insanity to keep going with the 'government bad' meme and 'I refuse to vote ' mantra when it yields the same results. Change over the HoR and the state houses, and see these corporations reined in by law and regulation. But be sure to put the blame where it really does belong, corporations who are now more powerful than government, due to voters hating it so much they are willing to leave the decisions to business.

Remember who controls the message. Boehner, who says their job is to repeal laws, not make them. So says there are more than enough laws. The state houses of the effected regions, who listened to their voters who don't want Big Coal regulated lest it cost them their jobs. Rand Paul, who wants the EPA, OSHA, EEOC, DOE and all the rest eliminated and says mountain top removal is good for the environment. How many in KY agree? How about WV? Ohio?

This is not directed at any poster at DU. Just why the OSHA is not the wrong doer in this situation, and who is doing wrong. And the desire that people will empower themselves by voting and stop agreeing with the right that the federal government is the big bad guy in this. It isn't. And it belongs to us.

JHMO, YMMV.

theHandpuppet

(19,964 posts)
33. Thanks for taking the time to compose such a cogent and informative post
Tue Jul 8, 2014, 03:13 PM
Jul 2014

Believe me, you have made some very good points and I would be the last person to discourage anyone from voting or activism. In the case of the WV spill (and not only the WV spill, but similar spills in OH, VA, and NC) there doesn't seem to be a single government agency that didn't fail in its job. OSHA, the CDC, the EPA, the courts, you name it. This was a failure on multiple fronts and a good portion was assisted by the very government agencies whose job it is to protect the citizenry.

This is the kind of keystone cops operation we've been following at Appalachia group and here's a sampling:

http://www.democraticunderground.com/127219
http://www.democraticunderground.com/1272244
http://www.democraticunderground.com/1272128

Yes, you can have laws in place but they won't do the people any good if they are not enforced. It reminds me of all the supposed protections put in place for miners:

WHARTON, W.Va. (AP) — Two miners who were killed on the job Monday night worked in a coalfield that had so many safety problems federal officials deemed it a "pattern violator," a rare designation reserved for the industry's worst offenders.

Brody Mine No. 1 was one of only three mines last year to earn the label that regulators have put greater emphasis on since the 2010 Upper Big Branch explosion killed 29 miners about 10 miles away.

The designation subjects the mine to greater scrutiny from regulators, and it's the strongest tool the Mine Safety and Health Administration has, said Kevin Stricklin, the agency's administrator of coal mine safety and health.

"We just do not have the ability or authority to shut a mine just because it has so many violations," Stricklin told The Associated Press on Tuesday.... http://www.huffingtonpost.com/2014/05/13/brody-coal-mine-accident-wv_n_5315496.html

So if you own a company, you can get away with 253 serious violations in one year (at one mine!), kill miners, declare bankruptcy and start all over again, fresh as a daisy. Yea, capitalism!

In the case of West Virginia, every major state office save one is held by the Democratic Party, as are both houses. What would you have them do now? Do you wonder why they have given up hope? I don't.

truedelphi

(32,324 posts)
34. Failure in terms of ensuring that the US public is able to remain healthy and safe is
Tue Jul 8, 2014, 04:05 PM
Jul 2014

Viewed as success in protecting the interests of the One Percent.

And we all know by now just who it is that those various governmental agencies are really working for.

As far as what to do so that the People can have hope - I nominate the Community Rights Organization. Simply voting in one party rather than another - it sounds good in principle, but usually the elected officials soon find their hands are tied in terms of taking over important situations. This is on on account of two relevant facts:

One: almost all the important decisions come down to money available (And believe me, there is little or no money available for things here in Calif. at the county or state level. Our wars and our propping up of billionaires has made funds very scarce.)

And,

Two: the important decisions also come down to what the various Fed and state agencies are doing (For instance, here in Calif,. the goddamn sheriff himself of Mendocino or Humboldt county really liked the fact that med marijuana clinics were up and running. He had begun to realize that as dispensaries opened and growers were employed, the dispensaries kept people employed and off county welfare, and the taxes paid by the dispensaries was buying the Sheriff's office new equipment and allowing the department to make new hires. But our precious little DOJ under Eric Holder did not like med marijuana dispensaries. So about one third to two thirds of all of them have been shut down (Depending on which County in Calif. you are talking about.)

Anyway, about 150 communities across the US are going the route of Community Rights orgs. You can Google Paul Cienfuegos and Community rights. Quite a few excellent videos are up on Youtube that explain what Community Rights does. (In Pittsburgh, PA, the three fracking wells that would have been operating by now were banned once the CR folks got their ordinance on the ballot and voted into law. Also in PA, another county got a 14,000 super pig farm banned from their county, before it could come in and destroy the air, the soil and the water.)

theHandpuppet

(19,964 posts)
35. This is great information
Tue Jul 8, 2014, 04:48 PM
Jul 2014

Oh, it's times like this I truly wish I was 20 years younger. Sigh.

If you have the time, would you mind posting something about the Community Rights Organization and your knowledge of it to Appalachia group? This deserves to be shared.

truedelphi

(32,324 posts)
36. Appalachia group and community rights. Got it.
Tue Jul 8, 2014, 05:16 PM
Jul 2014

Am signing off to get outside and do some plant transplants but will try to get that posted tonight or tomorrow. Thank you for the invite.

ancianita

(36,014 posts)
31. If California can dissolve companies, so can other states.
Tue Jul 8, 2014, 02:17 PM
Jul 2014

Rather than fight a losing battle against the harms one by one, the California Attorney General has legal authority to ask a court to dissolve a company by revoking its corporate charter. -- National Organization for Women

A Charter Revocation Movement should gain momentum. Let these companies go elsewhere and the people will develop their own greener economy here.

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