Tue 8 Apr 2008 11:16

PACCSHIP pleads guilty to concealing oil pollution


Ship operator to pay US$1.7 million for improper discharge of oil-contaminated waste.



PACCSHIP, the operator and manager of approximately ten ships that regularly carry goods between Asia and ports in the United States, pleaded guilty today and was sentenced to pay a $1.7 million fine for crimes related to improper transfers and discharges of oil-contaminated waste from two of its ships, announced Ronald J. Tenpas, Assistant Attorney General for the Justice Department's Environment and Natural Resources Division and George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina.

Specifically, PACCSHIP pleaded guilty to obstructing justice and for using falsified records that concealed improper transfers and discharges of oil-contaminated waste. The company was also sentenced to serve a four-year term of probation during which it must implement and follow a stringent environmental compliance program that includes a court-appointed monitor and outside independent auditing of its ships. The company will also pay a $400,000 community service payment.

The government's investigation began on April 11, 2006, when inspectors from the U.S. Coast Guard boarded the M/V Pac Antares, operated and managed by PACCSHIP, following the ship's arrival in Morehead City, N.C. The inspection uncovered evidence that crewmembers aboard the ship had improperly handled and disposed of the ship's oil-contaminated waste and falsified entries in the ship's official Oil Record Book to conceal these activities. During the inspection, crewmembers lied to Coast Guard inspectors in an attempt to obstruct the investigation.

The ship's Second Engineer pleaded guilty on May 7, 2007, in the Eastern District of North Carolina to making and causing the making of materially false statements in the ship's Oil Record Book relating to management of oil-contaminated waste aboard the ship.

On Nov. 5, 2006, inspectors from the Coast Guard, boarded the M/V Pac Altair, another ship operated and managed by PACCSHIP, again in Morehead City. The inspection again uncovered evidence that crewmembers aboard the ship had improperly handled and disposed of the ship's oil-contaminated waste and falsified entries in the ship's official Oil Record Book to conceal their activities.

The ship's Chief Engineer pleaded guilty on Dec. 7, 2007 in the Eastern District of North Carolina to making materially false statements in the ship's Oil Record Book concerning the management of oil-contaminated waste aboard the ship.

Engine room operations on board large oceangoing vessels such as the M/V Pac Antares and M/V Pac Altair generate large amounts of waste oil and oil-contaminated bilge waste. International and U.S. law prohibit the discharge of waste containing more than 15 parts per million of oil and without treatment by an oily water separator - a required pollution prevention device. Law also requires all overboard discharges be recorded in an Oil Record Book, a required log which is regularly inspected by the Coast Guard.

"PACCSHIP pleaded guilty and was sentenced today for its obstruction and deceit," said Assistant Attorney General Tenpas. "This prosecution is part of an ongoing effort to detect, deter, and prosecute those who illegally discharge pollutants from ships into the ocean and those who lie about such activities."

"The United State Attorney's Office for the Eastern District of North Carolina takes seriously its obligation to protect North Carolina's natural resources and the environment. The illegal discharge of oil from commercial ships impacts our health, our coastal waters, the international waters, and marine life. For these reasons, we will continue to work with law enforcement agencies to ensure compliance with our nation's environmental laws and to protect our marine environment," stated U.S. Attorney Holding.

This case was investigated by the U.S. Coast Guard Criminal Investigative Service and prosecuted by the U.S. Attorney's office for the Eastern District of North Carolina and the Department of Justice Environmental Crimes Section. The case was initiated by the Marine Inspectors and Marine Investigators from U.S. Coast Guard Sector North Carolina, Atlantic Beach, North Carolina.

Press Release


CEO, Fredrik Witte and CFO, Mette Rokne Hanestad. Corvus Energy raises $60m from consortium for maritime battery expansion  

Norwegian energy storage supplier secures growth capital to accelerate zero-emission shipping solutions.

Indian Register of Shipping hosts at LISW 2025. Shipping industry warned nuclear power is essential to meet 2050 net zero targets  

Experts say government backing is needed for nuclear investment.

Rendering of LNG bunkering vessel Avenir TBN. ExxonMobil enters LNG bunkering with two vessels planned for 2027  

Energy company to charter vessels from Avenir LNG and Evalend Shipping for marine fuel operations.

Logos of international maritime associations supporting IMO Net Zero Framework. Shipping associations back IMO Net-Zero Framework ahead of key vote  

Seven international associations urge governments to adopt comprehensive decarbonisation rules at IMO meeting.

Concept illustration of biofuel and renewable energy production. Study claims biofuels emit 16% more CO2 than fossil fuels they replace  

Transport & Environment report challenges biofuels as climate solution ahead of COP30.

Rendering of Green Ammonia FPSO. ABB to supply automation systems for floating green ammonia production vessel  

Technology firm signs agreement with SwitcH2 for Portuguese offshore facility producing 243,000 tonnes annually.

VPS launches VeriSphere digital platform. VPS launches Verisphere digital platform to streamline marine fuel decarbonisation tools  

New ecosystem connects multiple maritime emissions solutions through single user interface.

Wallenius Sol vessel Botnia Enabler. Wallenius Sol joins Gasum's FuelEU Maritime compliance pool as bio-LNG generator  

Partnership aims to help shipping companies meet EU carbon intensity requirements through bio-LNG pooling.

IAPH Clean Marine Fuels Working Group. IAPH launches products portal with ammonia bunker safety checklist  

Port association releases industry-first ammonia fuel checklist alongside updated tools for alternative marine fuels.

Berkel AHK Logo. Berkel AHK joins Global Ethanol Association as founding member  

German ethanol producer becomes founding member of industry association focused on marine fuel applications.