WASHINGTON, DC —Johnson Matthey Inc., the owner and operator of a gold and silver refining facility in Salt Lake City, plead guilty Thursday to violating the Clean Water Act by failing to properly report wastewater discharges at the facility, the Justice Department announced.
The former plant manager and former general manager both plead guilty to making false statements and were sentenced by Dee Benson, U.S. District Judge for the District of Utah.
As part of a plea agreement worked out with federal prosecutors, the company will pay a $3 million fine.
Former plant manager Paul Greaves and former general manager John McKelvie admitted to one felony violation for making false statements when reporting pollutants under the Clean Water Act at the precious metals refining facility. Greaves was sentenced to 1 year probation, a $500 fine and 20 hours community service and McKelvie was sentenced to 1 year probation, a $1,000 fine and 20 hours community service.
The Salt Lake City refines both gold and silver from a semi-refined product called dore. As part of the refining process, pollutants including selenium, accumulated in the wastewater. After treatment to remove the selenium, JMI’s wastewater was discharged to a sewer leading to Central Valley Water Reclamation Facility (Central Valley) and discharged to the Jordan River.
In 1999 a JMI auditer told the compay it was violating its industrial discharge permit by internally screening the water samples prior to them being submitted to an outside laboratory for analysis, the government said. JMI’s permit required samples be representative.
In January 2000, to avoid disclosing true concentrations of the selenium-contaminated wastewater discharged from the facility, employees continued to screen the wastewater, submitting only those with low selenium concentration to outside review.
“Accurate information about pollution discharges is essential for government to protect the public and the environment,” said Lori A. Hanson, Special Agent in Charge of EPA’s Crimininal Investigation Division in Denver. “Our criminal investigations will go as high up the corporate hierarchy as the evidence permits. Companies and their senior managers who submit false reports or bogus data will be vigorously prosecuted.”
U.S. District Judge Dee Benson set sentencing for the corporation for Dec. 2.