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You are here: Home / Economics / Free Markets Solve Everything / That’ll Teach Them!

That’ll Teach Them!

by John Cole|  July 8, 20144:00 pm| 65 Comments

This post is in: Free Markets Solve Everything, Decline and Fall, Fucked-up-edness

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If you want to know how miserable our regulatory system is (yet wingnuts keep claiming that businesses are over-burdened), read this:

The federal government announced this month that a West Virginia chemical company would be fined $11,000 for a spill earlier this year that poisoned the drinking water for 300,000 people in the state.

According to a citation document obtained by The Charleston Gazette, the Occupational Safety and Health Administration (OSHA) hit Freedom Industries with a $7,000 fine for keeping chemicals in diked areas that were not “liquid tight.”

The administration fined Freedom an addition $4,000 for not providing employees with a proper hand railing to walk over the storage dikes.

About 300,000 people were left without drinking water when coal cleaning chemicals leaked on Jan. 9. A recent survey found that one in five people reported health issues after the chemical spill.

Anyone want to bet the fine is cheaper than building the appropriate storage tanks, and every other sociopathic corporation will notice…

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Reader Interactions

65Comments

  1. 1.

    Schlemizel

    July 8, 2014 at 4:03 pm

    See, this is just proof that protection does not work therefore we should just quit trying, business will work it all out once ll the burdensome regulations are removed.

  2. 2.

    Tom Levenson

    July 8, 2014 at 4:05 pm

    This would be OK if and only if the next announcement was of criminal charges against the company’s board of directors and top execs. After Hobby Lobby, the personhood of the corporation would seem to demand no less, amirite?

  3. 3.

    Linnaeus

    July 8, 2014 at 4:09 pm

    That’s the OSHA fine (which I agree is pretty low), but there should be more fines coming from EPA, etc.

  4. 4.

    BGinCHI

    July 8, 2014 at 4:09 pm

    Please tell me some residents are suing the bejesus out of that corporation of criminals.

  5. 5.

    jayackroyd

    July 8, 2014 at 4:11 pm

    every other sociopathic corporation will notice

    It’s worse than that. ONLY sociopathic corporations will get involved–the ones willing to comply with the regs will be priced out of the “marketplace.”

  6. 6.

    Trollhattan

    July 8, 2014 at 4:12 pm

    $11k? “Haven’t they suffered enough, already?”

    No, no they haven’t. Cripes. Well, I’m certain Texas is now showing the way by regulatin’ ammonium nitrate in response to that town gettin’ blowed up, amirite?

  7. 7.

    Mike in NC

    July 8, 2014 at 4:14 pm

    Freedom Industries, huh? Is the CEO named Tom DeLay?

  8. 8.

    Punchy

    July 8, 2014 at 4:15 pm

    @Linnaeus: And what about lawsuits? Or are those companies protected from liability?

  9. 9.

    catclub

    July 8, 2014 at 4:15 pm

    Those were the fines from OSHA. I can hope that there will be fines from EPA for the actual spill.

  10. 10.

    Linnaeus

    July 8, 2014 at 4:16 pm

    @Punchy:

    I would certainly hope not. But I’m not an expert on that.

  11. 11.

    srv

    July 8, 2014 at 4:21 pm

    I guess Heckuva Job Brownie got promoted to OSHA.

  12. 12.

    ⚽️ Martin

    July 8, 2014 at 4:24 pm

    @Tom Levenson: However the Freedom Industries owners believed that 4-methylcyclohexanemethanol would improve water purity and wash away sins, so they should not be punished.

  13. 13.

    TG Chicago

    July 8, 2014 at 4:28 pm

    @Tom Levenson: At minimum, you’d think there would be a case for criminal negligence. If I personally mishandled chemicals and poisoned 300,000 people, I think I’d be in some serious trouble.

    Any law-talkin’ folks know of similar criminal cases?

    $4,000 for the handrail sounds reasonable. But only $7K for improper storage? Even if the EPA levies more fines, I just don’t see $7K being enough for what sounds like a huge occupational hazard.

  14. 14.

    BGinCHI

    July 8, 2014 at 4:32 pm

    What’s the difference between a corporation and a criminal conspiracy?

  15. 15.

    JPL

    July 8, 2014 at 4:34 pm

    If you sue the corporation, they will just declare bankruptcy and open up under a different name.

  16. 16.

    Trollhattan

    July 8, 2014 at 4:34 pm

    @⚽️ Martin:

    And it “smells nice.”

    “We made your water smell better; who’s going to pay US?”

  17. 17.

    MikeJ

    July 8, 2014 at 4:36 pm

    @BGinCHI:

    What’s the difference between a corporation and a criminal conspiracy?

    The individuals in a criminal conspiracy are sometimes held accountable.

  18. 18.

    gene108

    July 8, 2014 at 4:37 pm

    @JPL:

    Freedom Industries already filed for bankruptcy, shortly after the spill.

  19. 19.

    MikeJ

    July 8, 2014 at 4:37 pm

    @Tom Levenson:

    After Hobby Lobby, the personhood of the corporation would seem to demand no less, amirite?

    It’s a one way valve.

  20. 20.

    Schlemizel

    July 8, 2014 at 4:39 pm

    @JPL:
    FREEDUM industries has already done that.

    EDIT: I see @gene108: beat me to it

  21. 21.

    JPL

    July 8, 2014 at 4:43 pm

    @Schlemizel: Well Freedom isn’t free. Thank you to both of you for letting me know.
    So I guess lawsuits are out of the question.

  22. 22.

    LanceThruster

    July 8, 2014 at 4:43 pm

    I was gobsmacked watching this on TRMS last night. Go Wendy Davis!

  23. 23.

    Belafon

    July 8, 2014 at 4:45 pm

    I’ll bet that most WV residents would have said that’s too much if OSHA had seen these violations before the spill; I know most Texas residents would have said so.

  24. 24.

    kindness

    July 8, 2014 at 4:47 pm

    You know we love you John but isn’t this a case where the good people of West Virgina should speak up?

  25. 25.

    Berial

    July 8, 2014 at 4:48 pm

    The ‘red tape’ canard can be both true and false at the same time.

    I noticed it when I first went to work for my State’s equivalent of the EPA. The Clean Air Act had pollution behave much like a progressive tax, but only up to a certain point. The ‘big boys’ would just have a write off they pay every year (the max) while the smaller guys had to really work to figure out their ‘burden’. So in the end the small guys complain about red tape and regulatory burden while the big guys can basically just ignore it as ‘business as usual’. Then the ‘big boys’ can use the smaller guys grumbling to reduce their burden even more later by getting those smaller guys to go along with their ‘ideas’.

  26. 26.

    CONGRATULATIONS!

    July 8, 2014 at 4:49 pm

    I just don’t see $7K being enough for what sounds like a huge occupational hazard.

    @TG Chicago: That ammonium nitrate explosion that killed 15 people in Texas? And injured 200? And destroyed the town? $118.000 fine. I think that works out to not quite $12,000 per corpse.

  27. 27.

    MattF

    July 8, 2014 at 4:50 pm

    OT, but it looks like living in Bethesda is more exciting than I thought:

    http://www.washingtonpost.com/news/post-nation/wp/2014/07/08/smallpox-discovered-sitting-in-maryland-storage-room/

  28. 28.

    shelley

    July 8, 2014 at 4:56 pm

    @MattF:

    Saw that. And here I’d thought we’d been told that there were only two existing smallpox samples in existence. One in a deep freeze at the CDC, and the other at a similar Russian facility.

  29. 29.

    John Dillinger

    July 8, 2014 at 4:57 pm

    OSHA protects workers. That is what this fine is about–violation of the regs that protect the company’s workers. The regs that protect the public outside of the workers is a whole different ball game, so calm down people.

  30. 30.

    LanceThruster

    July 8, 2014 at 5:05 pm

    @LanceThruster:

    Oops. Misread the piece. WV and not TX. Same diff, though. Screwed, blued, and tattooed by TPTB.

  31. 31.

    kindness

    July 8, 2014 at 5:07 pm

    Sorry this is not a threadjack attempt.

    I see Germany is up 5-0 at the half time.

  32. 32.

    burnspbesq

    July 8, 2014 at 5:15 pm

    Cole, before you went off on your rant, did you bother to do any research to determine whether that might be the maximum fine permitted under the applicable statute?

    That’s what I thought.

  33. 33.

    Schlemizel

    July 8, 2014 at 5:19 pm

    @kindness:
    you might notice a whole thread for that just the other side of this one.

  34. 34.

    Barbara

    July 8, 2014 at 5:20 pm

    Well, to look at it from a slightly more optimistic perspective, the affected towns and people now have a better opportunity to bring lawsuits for damages because there has been a finding of negligence.

  35. 35.

    J R in WV

    July 8, 2014 at 5:21 pm

    The good ole boys that started and ran Freedom Industries went bankrupt 2 or 3 days after the “accident” and formed a brand new company that purchased the assets of the bankrupt company as soon as they could get approval from a bankruptcy judge.

    I understand that bankruptcy judges are responsible for seeing to it that any bankrupt business entity is aided to escape from bankruptcy as soon as possible… that may not be technically true (de jure) but it certainly appears to de facto true from my observation of how the world works.

    When I learned about how air quality worked, I realized that environmental protection was a terrible misnomer – after all it was invented by Nixon.

    @John Dillinger:

    And OSHA doesn’t protect workers particularly. They come around after an atrocity and fine the survivors, if any. There aren’t enough OSHA inspectors to visit every facility and or building site once a century. So they allow events to determine their priority list, visit sites where a catastrophe had happened, determine the cause, usually appalling carelessness and a total unwillingness to spend fifty cents on safety. Then they fine the owner an absurdly small amount, and go on the the next disaster.

    The bastards that ruined a good water system, which may never recover from the damage done, are already back in business, with litle or no oversight. The husk they left holding the bag can’t afford lawyers to defend themselves. Let alone to make the people they damaged whole again.

    We have a well, even thought we live in an old oil and gas patch first drilled in the 1910-1920 era, the water is pretty good. But one new action by any of the oil and gas companies could ruin our fragile acquifer. So when city water came to our holler, we paid for a tap, and continue to pay the minimum monthly payment for a connection that has never (thank [email protected]!) been turned on.

    People with wells shut their city water off as quickly as they could, and many of them were in time, I’m so glad I never actually turned on that water tap!

  36. 36.

    Schlemizel

    July 8, 2014 at 5:22 pm

    @shelley:
    I saw that too & it scares the crap out of me. There was a time when destroying the last of the virus on earth was discussed but all sorts of BS was tossed at it. It boiled down to neither the Ruskies or us trusting the other side not to weaponized the virus. I know the Reds had a huge factory producing it at one time & assume if we did not it would have been a simple thing to do. I still carry some residual protection, I have been vaccinated twice against it but my kids have not & I would guess nobody under 40 has been. If this got loose it would be truly horrific.

  37. 37.

    Higgs Boson's Mate

    July 8, 2014 at 5:35 pm

    @gene108:
    From your link:

    Since 1992, Freedom and its associates have made 12 filings, to found companies, dissolve companies, merge companies and change officers.

    Corporations are people, my friend, and when those people get in trouble they can become other people and thus leave their worries behind. We puny meat-people usually have to deal with the consequences of our actions.

  38. 38.

    Seanly

    July 8, 2014 at 5:35 pm

    @kindness:

    I thought this was a joke, but, umm, it’s not…

  39. 39.

    gocart mozart

    July 8, 2014 at 5:36 pm

    @Tom Levenson:
    Too bad corporations cannot be treated like people because if a person were to do this sort of thing the recriminations would be severe. Wait What?

  40. 40.

    gocart mozart

    July 8, 2014 at 5:37 pm

    @Seanly:
    The jokes on you, or the people of West Virginia to be precise.

  41. 41.

    Bobby B.

    July 8, 2014 at 5:45 pm

    I’m a sick bastard and I have no problem with people who keep reelecting Kochslaves drinking the bad water.

  42. 42.

    daveNYC

    July 8, 2014 at 5:53 pm

    @burnspbesq: Would that have disproved his statement about how miserable our regulatory system is? Which would be worse, that they didn’t get the maximum fine for this spill or that they did get the max and it’s chump change?

  43. 43.

    Citizen_X

    July 8, 2014 at 6:11 pm

    @burnspbesq:

    Cole, before you went off on your rant, did you bother to do any research to determine whether that might be the maximum fine permitted under the applicable statute?

    Did you?

    Because, I don’t know, you could have made your point by saying, “Actually, that’s the maximum fine permitted under the applicable statute,” and maybe even have given a link to the regs! But I don’t know the law like you do; maybe snide rhetorical questions count as “argument” in court.

  44. 44.

    Roger Moore

    July 8, 2014 at 6:13 pm

    @BGinCHI:

    What’s the difference between a corporation and a criminal conspiracy?

    A corporation is registered with the government, so everything is legal.

  45. 45.

    Eric S.

    July 8, 2014 at 6:15 pm

    Shit. No company I’ve ever worked for could hold the preliminary planning meetings to build the tanks for less than $11K.

  46. 46.

    danimal

    July 8, 2014 at 6:16 pm

    @kindness: Speaking as someone who likes to record games and watch them later, all I can say is that your post was a colossal example of assholitude. There’s already a soccer thread; there’s no damned reason to post spoilers on other threads.

  47. 47.

    Joseph Nobles

    July 8, 2014 at 6:26 pm

    @CONGRATULATIONS!: Ah, Texas, where the GOP nominee for governor opposes the disclosure of dangerous chemicals by businesses, and when asked how families could find out what chemicals companies were storing in the vicinity of their children, suggested that they “drive around.”

  48. 48.

    Zam

    July 8, 2014 at 6:27 pm

    @burnspbesq: How does absurdly low maximum penalties make his point invalid?

  49. 49.

    Patricia Kayden

    July 8, 2014 at 6:30 pm

    @Bobby B.: Me neither. I recall that Balloon Juice once covered a story where Democratic West Virginians voted for a felon over President Obama in the primary. Nuff said.

  50. 50.

    Roger Moore

    July 8, 2014 at 6:30 pm

    @Zam:

    How does absurdly low maximum penalties make his point invalid?

    It doesn’t but it makes him feel good to criticize John for something. Those who can, do. Those who can’t, blog. Those who can’t blog, post nasty snide, critical comments on other people’s blogs.

    Yes, I know I’m the pot calling the kettle black.

  51. 51.

    LAC

    July 8, 2014 at 6:38 pm

    @John Dillinger: shhhh..you are making sense. And you know how that goes here.

  52. 52.

    Eric U.

    July 8, 2014 at 6:39 pm

    @Joseph Nobles: so people are supposed to drive around and listen for large explosions. “Yup, dangerous chemicals”

  53. 53.

    Violet

    July 8, 2014 at 6:42 pm

    @kindness: Serious dick move commenting on the World Cup match when there’s a designated thread for it right below. Some people can’t watch the game live.

  54. 54.

    scav

    July 8, 2014 at 6:43 pm

    @Citizen_X: Don’t forget, if it’s legal and on the books or intoned from the bench, it is manifestly the epitome of just and moral and right and never to be questioned, as all such legal minutia and quibbles are. Unless he personally himself choses the other side. Everyone else is just observers and incidental to the Cathlo-Legal Elysium.

  55. 55.

    rikyrah

    July 8, 2014 at 7:02 pm

    pitiful
    pitiful
    pitiful

  56. 56.

    Lurking Canadian

    July 8, 2014 at 7:55 pm

    @Eric S.: this. Given the infrequency of OSHA investigations, the fine ought to be orders of magnitude larger than the cost of installing the safeguard. With a trivial fine like this, it might actually be criminal, under current corporate law, and is certainly inadvisable, the way business ethics are taught, for the company to install the safeguard instead of taking their chances.

  57. 57.

    El Caganer

    July 8, 2014 at 8:18 pm

    Hey, corporate America feels your pain,man. Why, right here in Fraternadelphia, management cared enough to put safety equipment in. Of course, then it was taken out again…..http://www.philly.com/philly/business/Bucks_sugar_plant_removed_safety_device_13_days_before_temp_workers_death.html

    If you want a special treat, read the comments.

  58. 58.

    John (MCCARTHY) Cole

    July 8, 2014 at 9:13 pm

    @burnspbesq:

    Cole, before you went off on your rant, did you bother to do any research to determine whether that might be the maximum fine permitted under the applicable statute?

    That’s what I thought.

    THAT’S THE WHOLE FUCKING POINT, YOU STUPID FUCKING GIT.

    Christ on a crutch, the point is that wingnuts and teatards and corporate America constantly whine about the regulatory excess, and that excess is paltry fines by OSHA. OSHA should be able to fine in the millions for this- put the fear og the dollar into them so they do things correctly.

    And yes, I know that OSHA is separate from the EPA. That’s why they have different fucking letters.

    Asshole.

  59. 59.

    Chris T.

    July 8, 2014 at 9:30 pm

    @Joseph Nobles: Personally, I think the cure for this is for someone to form a corporation that buys the house right next to the chemical company’s CEO, and then “store” all kinds of fun stuff in that house.

  60. 60.

    Comrade Dread

    July 8, 2014 at 9:35 pm

    If corporations are going to be treated as people under the law, I want them treated that way under criminal law too. I wonder what the Federal government would do to a person who dumped hazardous chemicals into a river that was the drinking water for 300,000 folks, causing it become undrinkable for weeks and potentially exposed folks to carcinogens and long term health problems?

    I’m guessing a SWAT team showing up to arrest me, a few days being interrogated by the FBI and possibly other three letter agencies, followed by an arraignment and a stay in a Federal corrections facility.

  61. 61.

    dmbeaster

    July 8, 2014 at 9:36 pm

    You have three basic choices when it comes to trying to shape capitalist business behavior. One is do nothing. We tried that from 1870 to 1930. Only diehard Heritage types and morons who dont know history champion this alternative. They fantasize that free market force will be a policing force, when history teaches us that capitalists hate free markets and will wreck them unless, ironically, they are vigorously policed. That great banker Morgan openly spoke of the inefficiencies of free markets, which is funny given the current opposite fetish today.

    The other two are government regulation with teeth or private lawsuits that threaten pocketbooks of the unruly. To a far greater extent than is commonly recognized, the USA relies on lawsuits to police behavior. Puts all the right wing crap about tort reform into clearer perspective, although as a matter of social policy, lawsuits are an inefficient and haphazzard device for reining in bad behavior.

  62. 62.

    dmbeaster

    July 8, 2014 at 11:00 pm

    Hey, just think of wingnut paradise in Texas where
    In response to the West fertilizer plant explosion, the Texas AG decided that henceforth, public agencies were barred from disclosing to the public what they knew concrrning what chemicals were being stored by various industries. In response to press questions, the AG indicated that ah shucks, folks could just find out on their own. This jerk is currently running to replace Perry as gov.

  63. 63.

    FromTheBackOfTheRoom

    July 8, 2014 at 11:36 pm

    I might not “accuse him of grifting, I would probably call him a clueless nattering douche.”
    Obomber in a NutShell..

  64. 64.

    Honus

    July 8, 2014 at 11:44 pm

    @burnspbesq: did you?

  65. 65.

    Honus

    July 8, 2014 at 11:44 pm

    @burnspbesq: did you?

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