Phillips 66 Faces $2.4M Fine for Alleged Oil Dumping in LA
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Phillips 66 (PSX), the Houston-based oil giant, faces legal trouble after a federal grand jury indicted the company for violating the Clean Water Act. The charges stem from the release of nearly 800,000 gallons of contaminated wastewater from its Carson, CA, refinery into the Los Angeles County sewer system. The wastewater, which contained excessive levels of oil and grease, was allegedly discharged between 2020 and 2021 without proper knowledge of the authorities.The indictment details two incidents in which Phillips 66’s Carson refinery released wastewater with hazardous concentrations of oil and grease. On Nov. 24, 2020, the refinery discharged 310,000 gallons of contaminated water, containing 64,000 pounds of oil and grease — 300 times the permitted limit under its environmental permit. A few months later, on Feb. 8, 2021, there was a second release, involving 480,000 gallons of wastewater with 33,700 pounds of oil and grease.The U.S. Department of Justice charged Phillips 66 with two counts of negligently violating the Clean Water Act and four counts of knowingly violating the law. The charges carry significant penalties,including up to five years of probation per count and fines totaling up to $2.4 million.The incident came to light after staff at a nearby wastewater treatment plant noticed the strong smell of oil, prompting an investigation into the source of contamination. While the Justice Department claims that the plant was able to capture the majority of the contaminated water before it was released into the Pacific Ocean, officials stress that such releases are unacceptable under environmental regulations.In response to the indictment, Phillips 66 stated that it would continue cooperating with the U.S. Attorney’s Office and is prepared to defend itself in court. The company reaffirmed its commitment to operational safety and protecting its employees as well as the surrounding communities.As the case progresses, Phillips 66’s handling of the charges could set a significant precedent for corporate accountability under the Clean Water Act.PSX’s Zacks Rank & Key PicksCurrently, Phillips 66 carries a Zack Rank #3 (Hold).Investors interested in the energy sector may look at some better-ranked stocks like Smart Sand, Inc. SND, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Phillips 66 (PSX): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Smart Sand (SND): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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