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CUC paid $169K in fees, fines since 2009
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Posted on Oct 26 2011
In the past three years, the Commonwealth Utilities Corp. has paid a total of $169,000 in fees and fines for failure to meet the deadlines of the stipulated order requirements set by the federal court.
CUC chief financial officer Charles Warren told Saipan Tribune that the total amount represents two specific payments in 2010: $29,000 in January 2010 and $140,000 in July 2010.
“The amounts assessed were for missing specific deadlines on stipulated order deliverables. I believe CUC is now meeting the expectations of the federal court. However, if CUC fails in some area in the future, more fines would be expected,” he said yesterday.
Warren said that there have been no other assessments or penalties since then.
Saipan Tribune learned that the $29,000 penalty was for failure to bring CUC’s five power plants and oil transfer pipeline into compliance, specifically for failing to submit a satisfactory facility response plan.
A response plan is required of facilities that store over one million gallons of oil and have the potential to cause significant and substantial harm to the environment. The plans must document that a facility has the necessary resources and equipment to respond to a worst-case discharge, such as those that may be caused by typhoons and earthquakes. The plan also requires the facility to conduct drills, exercises, and training to ensure prompt and effective response to small, medium and large oil spills.
The $140,000 fine was for failing to submit a plan for reorganizing CUC to bring its wastewater plants, collection systems, and public drinking water systems into compliance.
The stipulated orders, signed in March 2009, represent the agreement between the CNMI and the U.S. Environmental Protection Agency on what CUC needs to do to meet the requirements of the Clean Air Act and the Safe Drinking Water Act.
