Shipping Company Fined $1.75 Million For Dumping Oily Waste Off U.S. Coast

A ship management company based in Connecticut has admitted to illegally releasing oil-contaminated waste into U.S. waters near New Orleans. The company, Eagle Ship Management LLC (ESM), pleaded guilty to violating the Act to Prevent Pollution from Ships (APPS).

The pollution came from the M/V Gannet Bulker, a foreign-flagged bulk carrier managed by ESM. According to court documents, the discharge happened while the vessel was anchored near the Southwest Passage of the Port of New Orleans, close to where the Mississippi River meets the sea.

If the court approves the plea deal, ESM will have to pay a $1,750,000 criminal fine and serve four years of probation. During probation, the company will undergo external audits conducted by an independent technical expert.

The incident was uncovered after a crew member sent a message on March 14, 2021, through social media, reporting that the ship’s engine room had flooded and that oil-contaminated bilge water had been pumped overboard at night. These flooded bilges posed safety risks such as electric shock, power outages, and steering failure.

Investigations revealed that around 39 cubic meters (approximately 10,303 gallons) of oily waste were dumped without using the required pollution prevention equipment. The crew also failed to properly record the discharge, which is a legal requirement.

The U.S. Coast Guard launched an investigation based on the whistleblower’s report. It later found that the flooding had been caused by a failed repair and that the crew tried to cover it up.

ESM admitted that senior officers and crew members took several illegal steps to hide the incident. This included threatening or punishing the whistleblower, who was known to them.

The crew also lied to Coast Guard officials, destroyed a computer printout containing key evidence from the engine control room, and created fake and backdated personnel reviews in an attempt to damage the whistleblower’s credibility.

The chief engineer of the Gannet Bulker was prosecuted separately. He has already been sentenced to one year and one day in prison for his role in the illegal oil discharge and for trying to obstruct justice.

A representative from the DOJ’s Environment and Natural Resources Division stated that the company’s actions involved both intentional pollution and a deliberate cover-up, which are serious offenses under U.S. law.

An official from the Coast Guard Investigative Service said their team will continue to enforce maritime environmental laws and ensure compliance with international pollution regulations.

The Coast Guard Criminal Investigations Division, CGIS Gulf Field Office, and the Coast Guard’s Heartland District were all involved in investigating the case. The sentencing for Eagle Ship Management LLC is scheduled for October 16.

Reference: US Department of Justice

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