Citgo ordered to pay $13 million in pollution case

Citgo Petroleum Corp., the U.S. refining subsidiary of Venezuela's state oil company, pleaded guilty and was fined $13 million for negligently discharging pollutants into two rivers in Louisiana. The penalty is the largest ever for a criminal misdemeanor violation of the federal Clean Water Act, the Justice Department in Washington said. Houston-based Citgo entered its plea today in U.S. District Court in Lake Charles, La. The company, to cut costs, failed to properly maintain storm water tanks at its refinery in Sulphur, La., and didn't keep adequate storm water storage capacity, prosecutors said. 'Companies cannot make economic choices that sacrifice the environment,' said Ronald Tenpas, head of the Justice Department's environment and natural resources division. 'Sound business decisions must factor in the safeguard of the environment or companies will face consequences.' The failures resulted in about 53,000 barrels of oil being spilled into the rivers after a heavy rainstorm in June 2006, according to the government. A company spokesman didn't immediately return a phone call seeking comment.