Louisiana Containerboard Manufacturer to Pay $2.5M for Violating Clean Air Act After an Explosion at its SWLA Mill

Louisiana / Washington D.C. – On September 28, 2022, the Department of Justice U.S. Attorney’s Office Western District of Louisiana announced that Packaging Corporation of America (PCA), headquartered in Illinois, has agreed to pay $2.5 million in civil penalties to resolve allegations that it violated the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at its containerboard production mill in DeRidder, Louisiana.

The United States and the Louisiana Department of Environmental Quality (LDEQ) allege nine Clean Air Act violations in the complaint, which was filed on September 28, 2022, along with the proposed settlement, stemming in part from a tragic explosion and accidental release at the DeRidder, Louisiana mill on February 8, 2017. The explosion, which killed three workers and injured seven others, blasted a 100,000-gallon storage tank into the air and over a six-story building before landing 400 feet away on mill machinery. The explosion also damaged property and spilled extremely dangerous toxins into the environment. Following the explosion, the Environmental Protection Agency (EPA) examined the DeRidder mill and discovered more Clean Air Act infractions.

“PCA violated the Clean Air Act and accompanying regulations at its DeRidder mill, resulting in an explosion that caused the senseless deaths of three workers, while placing other workers and the surrounding community in danger,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “The Department will continue enforcing environmental mandates to save lives and protect air quality — especially against companies with a history of misconduct, like PCA.”

“The Clean Air Act was created to provide guidelines for companies such as PCA to adhere to in order to keep our communities safe from hazardous substances,” said U.S. Attorney Brandon Brown for the Western District of Louisiana. “Sadly, it took an explosion and the loss of lives to highlight PCA’s failure to adhere to some of these guidelines. The Civil Division in the Western District of Louisiana has an important job and welcomes the opportunity to continue to work alongside our federal and local partners to ensure these laws are abided by.”

“This case demonstrates the tragic impacts to human life and the environment that can result from failures to follow appropriate chemical accident prevention and preparation requirements,” said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This settlement both holds the Packaging Corporation of America accountable for failures that contributed to this accident and sends a clear message to corporations across the country on the importance of implementing appropriate chemical safety measures.”

“This settlement holds Packaging Corporation of America accountable for the harm it has caused to the environment and to the individuals who lost their lives on Feb. 8, 2017,” said Dr. Earthea Nance, EPA Region 6 Administrator. “Legal action will be pursued for companies who fail to safeguard their workers’ well-being. We offer our condolences for all individuals affected by this tragedy.”

“We join with our federal partners in taking action to ensure that this tragic occurrence is properly addressed,” said Dr. Chuck Carr Brown, LDEQ Secretary. “Those responsible must be held accountable.”

The Clean Air Act’s Section 112(r) and its supporting regulations are intended to prevent the unintentional emission of hazardous compounds, such as those at the DeRidder mill. Section 112(r) was inserted by Congress in response to the 1984 methyl isocyanate disaster in Bhopal, India, which killed over 3,400 people and injured over 200,000 more. The Clean Air Act requires facilities like PCAs to identify dangers, construct and maintain a safe facility, minimize the consequences of any inadvertent leaks, and comply with regulation preventative measures. Failure to meet these rules raises the likelihood of accidents and endangers the neighboring community.

The EPA’s enforcement and compliance assurance program prioritizes reducing the risk to human health and the environment by reducing the incidence of chemical accidents at chemical facilities.

The proposed settlement stipulation is subject to a 45-day public comment period, as well as judicial scrutiny and approval. The settlement stipulation is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.