R.M. Packer Ordered to Pay Hefty Fines for Environmental Violations
Two waterfront Vineyard Haven companies owned by Ralph M. Packer have been ordered by a federal judge to pay $1.3 million in fines.
Two waterfront Vineyard Haven companies owned by Ralph M. Packer have been ordered by a federal judge to pay $1.3 million in fines for years of violating federal and state environmental laws designed to protect clean air and water from pollution.
The U.S. District Court of Massachusetts ordered R.M. Packer Company Inc. and Tisbury Towing and Transportation Co. to pay the fines over the next four years and take immediate steps to comply with environmental laws as spelled out in the federal Clean Air Act and Clean Water Act.
“Compliance with environmental regulations is, and should be, the cost of doing business even for smaller companies,” U.S. District Court Judge Denise Casper wrote in the Sept. 30 ruling.
Mr. Packer said this week that he will appeal. He did not dispute the violations, but said the fines are excessive and could possibly bankrupt his companies. Similar statements were made in court pleadings.
“We are under great strain of meeting the demands of the EPA [Environmental Protection Agency],” Mr. Packer said. “We are trying to fulfill the customers’ needs and fulfill the requirements of the EPA, Coast Guard and Homeland Security.”
The case was brought by the environmental enforcement section of the Justice Department in 2016. Voluminous court records document three years of proceedings that concluded with a four-day bench trial in Boston in September.
Violations at issue in the case date to 2013, and include a failure by Packer Co. to maintain emissions control equipment at its bulk fuel terminal on Beach Road in Vineyard Haven. Proper equipment was installed after the company was cited for noncompliance in 2002. But later there was a failure to repair vapor leaks and to inspect, document and report on the equipment, federal regulators said.
The bulk fuel terminal also failed to comply with industrial stormwater requirements and properly maintain boat cleaning operations, waste stockpiles, and oil and waste storage containers, regulators found. As a result, harmful pollutants were discharged directly into the Lagoon Pond and Vineyard Haven Harbor over a period of years, regulators for the Environmental Protection Agency said. The harbor leads into Vineyard Sound, a federally regulated waterway.
Tisbury Towing, a Packer company that transports gasoline and other petroleum products between New Bedford and Vineyard Haven, was also found in violation of Massachusetts Air Pollution Control regulations. While R.M. Packer Co. has been cited and fined in the past, including in 2002 and again in 2008, this is the first time Tisbury Towing has been cited and fined. The towing company also contracts with the Coast Guard to respond to oil spills in waters around Martha’s Vineyard.
As spelled out in court documents, Mr. Packer and his wife Dorothy are the sole owners and chief executives of the marine transport and fuel storage operations that have had a presence on the Vineyard Haven waterfront dating to the 1950s and 1960s.
Among other things, Packer supplies home heating oil and gasoline, both retail and wholesale, on the Island, and operates the only deepwater dock in Vineyard Haven capable of offloading large items from barges. The company also has a terminal in New Bedford and barges petroleum and other products between ports in the Whaling City and Vineyard Haven.
Bulk fuel terminal failed to comply with industrial stormwater requirements.
Bulk fuel terminal failed to comply with industrial stormwater requirements.
In their brief, attorneys for the government framed their request for court intervention in strong terms.
“Albeit defendants are small companies, their prolonged and ongoing disregard of environmental requirements has increased public health risks, threatened the natural environment and drained government resources,” they wrote. “Violations from small facilities can collectively cause substantial pollution, and thus must be met with meaningful consequences.”
In a memorandum accompanying her decision, Judge Casper noted the voluminous record of violations, most of which were ignored over the years by the Packer company. “The court cannot conclude that there have been any sustained, good faith efforts by the defendants to comply with the Clean Air Act and Clean Water Act,” the judge wrote. “Even when the EPA gave defendants notice of the specific violations, defendants often took years to comply . . . Even after the complaint in this case was filed in April 2016, there have been continuing violations.”
The court found based on expert testimony at trial that there was an undisputed economic benefit to Packer for not complying with the regulations.
“Although defendants dispute their ability to pay the civil penalty that the government seeks . . . they presented no evidence disputing that R.M. Packer reaped an economic benefit from failing to comply with the law and this court finds that it did so . . .” the judge said in part.
The judge also wrote:
“The only factor that defendants more vigorously contest is that they will not be able to bear the burden of the penalty in excess of one million dollars . . . defendants evidence, however, is not compelling on this point.”
Mr. Packer will be required to pay the fines in installments over the next four years, with an initial payment due on Nov. 30.
Speaking to the Gazette by phone Thursday, he said he plans to appeal the ruling, and described an increasingly complicated technical and regulatory environment that he said his company is taking steps to keep pace with.
He noted that Packer Co. plays a key role in controlling truck traffic to the Island.
“The Vineyard is growing,” Mr. Packer said. “It needs bulk materials. And if you take what we bring over on barges, the bulk material, petroleum — we are bringing over a generator next week for the town of Edgartown — take what we bring over and count the trailers and trucks that don’t have to go on the Steamship. We take 34,000 cars a year off the Bourne Bridge.”
Among other things, he said he has hired a full-time compliance officer who has been on the job for about three months.
“We realized we are becoming more sophisticated and it is becoming more technical. All reporting is done electronically now,” Mr. Packer said. “We’ve spent in excess of $2 million — no grants — just two million from our company to meet new rules and regulations. Maybe we haven’t moved fast enough, but we have spent the dollars to try and keep the environment stable.”
Comments
We all know we need
Diane EdgartownWe all know we need regulations, but I for one stand with Mr. Packer and his family. I thank them for all the effort they make on trying to run a business while big brother is watching and waiting for the slightest infraction. Do you really think the Packers are out to destroy the environment? Stop the government madness. We are all crazy about plastic today when 20 years or so ago we stopped paper in our stores for plastic bags. Everything in moderation. Thank you to the Packer family, march on and continue to defend yourselves.
Cry me a river. Compliance
Phillip M TisburyCry me a river. Compliance with current federal and state environmental regulations is a cost of doing business. Appears to me Packer made a conscious decision to ignore existing regulations. Time to face the consequences. I have zero empathy for Packer. Especially considering the record reflects he made no effort whatsoever to remedy his actions despite being provided numerous and repeated opportunities.
Bob Packer is truly one of
hennesy cambridgeBob Packer is truly one of the last great entrepreneurs of this island. He and his wife have built an empire from hard work and true grit. And I am sorry to hear that such a feat has been blemished by accusations and governmental restrictions. I wish there were still more men like Bob. We need them. Keep truckin' Bob, God isn't the only one who knows how great a man you are. Sincerely, M. Hennessy
Every petroleum tank farm
here we go again edgEvery petroleum tank farm operator in the USA has to comply with the EPA rules. And the majority of them do so, while operating in a competitive environment on MUCH smaller profit margins. As a seller of petroleum products in a captive market, he can gouge the consumer, just as the others do. Its a disgrace what we have to pay here for gasoline. Just compare the prices to Falmouth. Pay the fine, upgrade the equipment, play by the rules. Barging over bulk materials has nothing to do with non-compliance with EPA regulations for petroleum products.
Amen.and what are the 34,000
Gabrielle West TisburyAmen.and what are the 34,000 cars he is talking about?
1. You cannot compare prices
Roger Gagnon Gorham Maine1. You cannot compare prices on Martha's Vineyard with those in Falmouth (Hello?). Just Ferry your car over to the Vineyard from Woods Hole to get an example. What R.M. Packer is doing is an economic benefit to those who live on the Island.
2. I know Ralph Packer and have had business dealings with him. He's a tough businessman, but he is also a refreshing, old fashion person of integrity.
3. Be careful what you wish: if fines are are not mitigated and Ralph decides to sell operations, most assuredly, the cost to customers will go up markedly.
With Ralph and Dorothy Packer
James Kozak Vineyard HavenWith Ralph and Dorothy Packer owning dozens of properties, personal, agricultural and commercial throughout Martha’s Vineyard, totalling tens of millions of dollars, I am wondering how anyone suppressed their laughter as their lawyer announced their poverty status in regards to the ability to pay those fines?
“The Vineyard is growing.” It
Mitzi Aquinnah“The Vineyard is growing.” It is indeed, at a completely unsustainable rate. We need to get serious about making difficult choices.
Ain’t that the truth!
Slater MVAin’t that the truth!
I hear nothing from Packer
T Bone Oak BluffsI hear nothing from Packer about taking environmental laws seriously. Look at how ugly his property in VH is. Remember what happened in Edgartown harbor this past summer - simply poor maintenance. It's just sloppy and callous, and honestly -- disrespectful to our island. The Packers are not paupers. The judge sent a serious message with this fine. I hope Packer stops his environmental resistance.
Amen!!!!!!
Paula Oak BluffsAmen!!!!!!
Really Diane – you must be a
EDS Ft LauderdaleReally Diane – you must be a relative or an employee and is so you should disclose same when you write on this subject.
Here We Go Again is exactly correct.
My take is and apparently that of the authorities is that this guy doesn’t give a dam about the environment. He [or his sons] have been in this business way long enough to know the rules.
With regard to the ’34,000’ cars [this guy must be living in a fantasy world] we all pay higher prices for everything on the Vineyard, it’s all part of the price of the life or vacation style though it is hard to understand why gas should be a dollar plus more per gallon.
Maybe the island should take bids and contract out the barge delivery to the Island and if necessary, contact out the delivery to the gas stations. One tanker holds 10-12,000 gallons so at a dollar more per gallon Mr. Parker makes a gross profit of $10,000 per truck. I suspect the Depot in Edgartown gets 10k gallons per day during the season; seems exorbitant to me. BTW the tankers have ‘Shell’ written all over them and I see them on the ferries not his barges. And this is one station and doesn’t discuss heating oil, etc.
By the way Mr. P, what did you charge Edgartown for the that generator? This is public information so you should provide the information in good faith if asked and I am asking.
With regard to moving fast enough, in many areas things don’t move fast enough on the Vineyard but that is an excuse not a reason for Mr. Parker not to have kept his infrastructure up to date. If he is not a professional then he shouldn’t be running a petroleum business, much less one on an island. And the fact that he is surrounded by many who lack a professional approach to business on the island, does not excuse him.
Finally, T Bone, couldn’t agree more and he’s probably an active part of group [I almost said ‘leaders of the group’, shame of me] opposing the renovation in the Beach Rd area.
I am all for fining Mr. Packer but you know who will pay it.
If you care about the
Christine Potts Vineyard Haven and MedfieldIf you care about the Vineyard and protecting its natural resources, this quote says it all: “Violations from small facilities can collectively cause substantial pollution, and thus must be met with meaningful consequences.”
I don’t understand how
Steve FalmouthI don’t understand how someone who lives on an island and makes his living on the water could care so little about his environment. Pathetic
This is a troubling piece to
Ewell Hopkins Oak BluffsThis is a troubling piece to read.
We as a community own some level of responsibility in this matter. Now the question is will we come together in search of an answer or stand back and watch from the sidelines?
Huh ?
Bob Colonial Vineyard HavenHuh ?
Ewell, with all due respect
Love that Dirty Water Not BostonEwell, with all due respect it's the packer problem and it's our issue of dirty water we're left with to figure that out.
Where are all the shell fishermen that are complaining about the project across the street (Marina) in this debacle. They are silent on this yet a sensible marina project that comes to clean up water is bashed repeatedly by the MV shellfish group and Tisbury Shellfish Warden. This Packer property has had years of violations and nobody has reacted to this from the shellfish community ever? Can you say hypocrites? It's a shame you all turn a blind eye when it's damaging the environment.
If you mean switch to
Carol formerly ChilmarkIf you mean switch to electric cars, heck yes! About time. I've got one; they're just a better propulsion system (as well as obviously a cleaner one).
Carol, I mean clean water. I
Love That Dirty Water Not BostonCarol, I mean clean water. I'm perplexed how shellfish professionals on the island bash a project which is well thought out on one side of the road but stay silent for years to the Packer Population.
Unless you have a solar panel
fact checker edgUnless you have a solar panel on the roof of your car, the electricity comes from nuclear, coal, oil, or natural gas powered generation. So the pollution from generation is simply elsewhere, as you replaced an internal combustion gasoline engine with pollution "in someone elses backyard''
JUST TAKE A LOOK AT THE
ENVIRONMENT DEFENDER VINEYARD HAVENJUST TAKE A LOOK AT THE PACKER OWNED REAL ESTATE AROUND THE ISLAND. HOW COULD COMPLIANCE WITH IMPORTANT DEP RULES AND REGULATIONS DRIVE THAT CO. INTO BANKRUPTCY, DIVEST AND PAY THE FINE, AND GET MOVING TO STOP POLLUTING THE WATER AND AIR.
"Hefty" fines? I think the
Aaron Edgartown"Hefty" fines? I think the fines seem pretty modest considering Mr. Packer is guilty of the violations and the judge stated there is no evidence the fines are beyond his ability to pay. Very disturbing way to run a company. No wonder so many young adults choose to not bring a child into the world.
So true......I'm sure you'll
bs Oak BluffsSo true......I'm sure you'll heed your own advice.
Thank you for breaking this
Barry EdgartownThank you for breaking this important news story. Excellent journalism.
A very disturbing article.
Kelce Oak BluffsA very disturbing article. In the long run it may be best for our island if a responsible party buys Packer's business out of bankruptcy. Change is needed. His quotes above show he doesn't get it and is in over his head in a modern world. We deserve better. The island is no longer stuck in 1980. It's 2019.
Does anybody actually expect
John Somewhere-In-The-MiddleDoes anybody actually expect that the Packers will be paying those fines? That money will simply be passed along to all their customers in the form of higher prices.......
The recent Packer headlines
Not John OBThe recent Packer headlines have not been good ones. I hope they make amends.
Bingo!
DownislanderBingo!
Every well off person cries
Charlie Callahan So Boston/EdgartownEvery well off person cries poor mouth. They make a fortune on fuel oil and gas. They should check the ground around service stations and other places that use fuel and chemicals.
The laws in America don't
Edgartownite EdgartownThe laws in America don't apply on Martha's Vineyard unless we want them to. Would someone please tell this judge to read Vineyard rules and laws!
Invite in some competition.
Mark S EdgartownInvite in some competition. Packers have had a monopoly on the Vineyard and Cuttyhunk. Prices have always been outrageous. No excuses for non compliance.
Please follow up on this
Henrietta EdgartownPlease follow up on this article. I’m quite curious to see if the Packers pay the first installment due on November 30th.
Where I now live, there is
Christine Powers WalthamWhere I now live, there is honest competition among oil companies. With my home heating oil company, they gave me a price cap contract.
Mr. Packer, can you please
LBL V..H.Mr. Packer, can you please clean and straighten up your property on Beach Road. Looks terrible ! Please.
Most of these commentators
BS Oak BluffsMost of these commentators have never had to deal with the EPA regulations imposed upon the Packers. If they did they would have a better understanding of this situation.
One infraction? Ok, maybe.
BSBS OBOne infraction? Ok, maybe. Multiple infractions over years and years? No forgiveness. If Packer wants to thumb his nose at the EPA don't pollute our island while doing it.
They were cited and fined in
Resident MVThey were cited and fined in 2002 and again in 2008. It would appear that if anyone needs a better grasp on the issues at hand it is the Packers themselves. The regulations “imposed” on them are national industry wide regulations. Why should they be able to gain an unfair competitive and financial advantage by simply choosing to ignore them? For an Island that continually lauds itself for being so “community oriented” I can think of few things less neighborly than brazenly disregarding a call to come into compliance with environmental regulations while reaping the monetary reward of a near monopoly.
Amen, couldn't have said it
MC NorthshoreAmen, couldn't have said it better myself!
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