Arkansas Midland Railroad Co. has agreed to pay $910,985 to settle allegations that it illegally stored hazardous waste at a private rail track in Hot Springs, the U.S. Environmental Protection Agency announced.
In a news release, the agency said the railroad stored more than 750,000 gallons of highly flammable material in rail cars near homes, a school and waterways. Under direction from the EPA, the waste was removed and disposed of in a permitted facility.
No evidence of leaks or exposure were found.
The EPA said the waste material, o-Chlorotoluene, was stored in up to 34 unsecured, unsupervised rail cars leased by ORG Chem Group LLC of Evansville, Indiana. The railroad told investigators that it conducted weekly inspections of the facility near 2200 Spring St. and that management personnel were on site at least three times a week, according to the consent agreement filed by the EPA’s regional office in Dallas.
The waste material was kept at the facility for about two years ending in October 2023. On occasion, the rail cars containing the waste were moved between the track and an ORG Chem Group facility, but the material inside was not identified as hazardous in transportation documents, the EPA said.
The state of Arkansas discovered the waste as part of an investigation of another facility and referred the case to the EPA.
The material, o-Chlorotoluene, is a colorless liquid with a strong, irritating odor that’s used as a solvent in making chemicals, pharmaceuticals, synthetic rubber and dyes, and as an insecticide and bactericide. It’s classified as a hazardous waste under the federal Resource Conservation and Recovery Act for its highly flammable and toxic properties.
The regulation allows the EPA to assess a civil penalty of up to $25,000 per day, and increased for inflation, for violations.
“Residents of Hot Springs or any community should not have to live with the threat of toxic material just steps from their homes and schools,” Earthea Nance, the EPA’s regional administrator, said in a statement. “EPA and our partners are here to hold companies accountable when they fail to comply with the hazardous waste regulations that keep people and our natural resources safe from exposure and contamination.”
The railroad, headquartered in Malvern, operates 112 miles of track in Arkansas over five disconnected lines. It was acquired by Genesee & Wyoming Inc. of Cheyenne, Wyoming, in 2015.
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