The recent environmental enforcement news below includes some large fines, prison time, a US Government dismissal of a Biden-era enforcement action, and another class action lawsuit for greenwashing.
Three-Quarters of a Billion Dollars for Damages
As reported by the Associated Press News, “Chevron must pay $744.6 million to restore damage it caused to southeast Louisiana’s coastal wetlands, a jury ruled on Friday following a landmark trial more than a decade in the making.”
The jurors found that Texaco, which was acquired by Chevron in 2001, violated Louisiana regulations governing coastal resources by failing to restore wetlands impacted by dredging canals, drilling wells, and billions of gallons of wastewater dumped into the marsh.
The company failed to follow known best practices for decades since it began operating in the area under Texaco’s management in the 1940s.
“A 1978 Louisiana coastal management law mandated that sites used by oil companies ‘be cleared, revegetated, detoxified, and otherwise restored as near as practicable to their original condition’ after operations ended.”
Chevron’s lead trial attorney, Mike Phillips, said in a statement following the verdict that “Chevron is not the cause of the land loss occurring” in Plaquemines Parish and that the law does not apply to “conduct that occurred decades before the law was enacted.” (Associated Press).
Mr. Phillips also said the company had operated lawfully and blamed land loss in Louisiana on other factors, namely the extensive levee system that blocks the Mississippi River from depositing land, regenerating sediment, which is a widely acknowledged cause of coastal erosion (IEN).
Chevron said it will appeal.
Prison and Monetary Penalties
The United States Department of Justice announced that on April 15, 2025, Aghorn Operating Inc., Trent Day (Vice President at Aghorn Energy), and Kodiak Roustabout Inc. entered guilty pleas and were sentenced due to violations of Worker Safety, the Clean Air Act (CAA), and the Safe Drinking Water Act (SDWA).
Mr. Day pleaded guilty to a CAA negligent endangerment charge and was sentenced to serve five months’ incarceration. Aghorn pleaded guilty to CAA negligent endangerment and an Occupational Safety and Health Act (OSHA) willful violation count for the death of an employee and the employee’s wife (from a Hydrogen Sulfide release).
Aghorn was sentenced to pay a $1 million fine. Kodiak pleaded guilty to making a materially false statement regarding well integrity testing that is required under the SDWA and was sentenced to pay a $400,000 fine.
The lawsuit states that Amazon misled consumers by falsely advertising its Amazon Basics Paper Products as environmentally friendly (Photo by Brian Garrity on Unsplash).
US DOJ Dismisses Biden Era Lawsuit
The US DOJ announced they were dismissing a lawsuit against Denka Performance Elastomer LLC (Denka).
According to the DOJ, “The Biden-era complaint alleged a marginally increased risk of harm after prolonged exposure. The complaint did not allege that emissions from Denka’s LaPlace plant violated any regulatory air quality standard.” This action reflects the Trump administration’s efforts to eliminate the focus on Environmental Justice and Diversity, Equity, and Inclusion.
From the DOJ announcement: “Denka’s LaPlace facility produces neoprene, a synthetic rubber essential for products like orthopedic braces, wetsuits, and automotive components. Following a 2017 settlement with the State of Louisiana, Denka invested over $35 million to cut chloroprene emissions by 85 percent. Despite this progress, the Biden Administration sought a preliminary injunction to halt operations, a request effectively denied when the court deferred a hearing on the preliminary injunction to the bench trial.”
Amazon Hit with Greenwashing Lawsuit
As we discussed in our September 18, 2024, blog (“Is it Time to Reconsider Non-Essential Environmental and Social Commitments?”), there are increased risks in making certain “green” claims. Recently, Amazon Basic Paper Products was the target of a class action lawsuit.
According to the lawsuit, consumers allege that Amazon misled consumers by falsely advertising its Amazon Basics Paper Products as environmentally friendly. Amazon allegedly misled consumers by using an unqualified Forest Stewardship Council logo on its paper products.
In a blog by Kelley Drye, they write, “The Forest Stewardship Council (or “FSC”) requires companies to use different FSC logos to depict different levels of commitment to responsible forest management. Despite this, Amazon uses an unqualified Forest Stewardship Council logo, even in situations where Amazon knows that its supply chains only contain a fraction of FSC-certified forests.”
The Kelley Drye blog also includes, “This case supports our prediction that companies will continue to be scrutinized over their environmental messaging, not just on product, but also in sustainability reports. Companies should assess those claims carefully and support from their supply chains to help ensure they are not overstating the actions and that they don’t convey any claims they can’t support.”
In light of this and similar litigation, carefully consider your sustainability or other green commitments as well as sustainability claims in your marketing material.
Environmental Advice
Dragun Corporation has been assisting the regulated community with environmental compliance, assessment/remediation, and litigation support since 1988. If you need assistance with a PFAS-related issue, including litigation support, contact Jeffrey Bolin, M.S., CHMM, at 248-932-0228, Ext. 125.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for more than 45 years. He has written hundreds of blogs and articles. His published work includes Michigan Lawyers Weekly, Detroiter, Michigan Forward, GreenStone Partners, Manure Manager Magazine, Progressive Dairy, and HazMat Magazine.
Jeffrey Bolin, M.S., reviewed this blog. Jeff is a partner and senior scientist at Dragun Corporation. He is a published author, a frequent speaker, and an expert witness. His expertise in environmental due diligence, PFAS, vapor intrusion, and site assessments has led to projects in the US, Canada, and overseas. See Jeff’s Bio.
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