The Alabama Department of Environmental Management (“ADEM”) and Sun Coast Resources, LLC (“SCR”) entered into an August 7th Consent Order (“CO”) addressing the violation of certain Alabama regulations concerning transportation of used oil. See Consent Order No. 25-XXX-CHW.
The CO provides that SCR operates a waste transportation company with EPA Identification Number located in Montgomery, Alabama.
The company, as a result of its operations at all times relevant to this action, is described as defined in ADEM Admin. Code Div. 14 as a:
- Used oil transporter.
- Used oil transfer facility.
ADEM is stated to have issued a Used Oil Transport Permit Number on October 1, 2020, to SCR which expired on November 5, 2023.
ADEM is stated to have conducted a compliance evaluation inspection ("CEI") of SCR on February 4, 2025. The CEI and a review of SCR's compliance showed the following:
- Failure to obtain a new Alabama Used Oil Transport Permit and continued to operate as a used oil transporter after its Alabama Used Oil Transport Permit expired.
- Transportation of used oil in the State of Alabama without an Alabama Used Oil Transport Permit.
- Failure to keep closed one keep closed one used oil container located in the pump warehouse.
- Failure to label one used oil container located in the pump warehouse and one 6,000-gallon above ground used oil storage tank located in the tank farm with the words “Used Oil.”
ADEM reissued a Used Oil Transport Permit on March 13th to SCR.
SCR is stated to have indicated that Pumpelly Oil Acquisition, LLC ("Pumpelly") submitted its Transporter Permit Renewal Application to ADEM on May 7, 2024. The previous permit expired on November 11,2023. Pumpelly was stated to be in the process of being dissolved and merged into its affiliate, SCR. Neither the ownership of the entity holding the applicable permit nor the onsite activities have changed. SCR is stated to have then submitted a permit update under the new legal entity name in October of 2024. Further, SCR’s response provides a detailed timeline of events.
As to the referenced containers, they were immediately closed, and remain closed, except when adding or removing used oil, after receiving the ADEM NOV. Further, the containers were stated to have been properly labelled within 30 days of receiving the NOV from ADEM. SCR states that it has acted in good faith to address the identified issues and is committed to providing the necessary manpower, equipment, training, and materials to comply with all applicable local, state, and federal environmental regulations. In addition, it neither admits nor denies ADEM’s contentions.
A civil penalty of $4,240.00 is assessed.
A copy of the CO can be downloaded here.
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