Matson to pay $1M for molasses spill

Matson has agreed to pay $1 million to resolve all federal criminal charges tied to last year’s 233,000-gallon molasses spill in Hono­lulu Harbor.

The U.S. attorney here filed papers in federal court Tuesday charging Matson Terminals Inc. with two misdemeanor violations of the Rivers and Harbors Act of 1899 — one charge for each day the molasses leaked into the harbor. Each charge carries a maximum $200,000 fine for a total of $400,000.

Matson Terminals operates the company’s facilities at Hono­lulu Harbor and is a subsidiary of Matson Inc.

The company is scheduled to appear in U.S. District Court on Friday to plead guilty to the charges as part of a plea agreement.

In addition to the criminal fines, Matson says it has also agreed to make a $600,000 community service payment. Half of the money will go to the Wai­kiki Aquarium to support its coral programs and invasive algae cleanups, and the other half will go to Sustainable Coastlines Hawaii to inspire local communities to care for their coastlines through beach cleanups.

"While we regret the incident, we are focused on resolving the matter, subject to the court’s approval of the agreement," Matson President and CEO Matt Cox said in a written statement.

Cox said the company has cooperated with the U.S. attorney and the U.S. Environmental Protection Agency’s Criminal Investigation Division throughout their investigation of the Sept. 9-10 spill.

The company still faces possible civil claims from the EPA and the state of Hawaii for damage caused by the spill.

"We continue to cooperate with the state and the EPA in an effort to address impacts from the incident," Cox said.

According to the company’s past four quarterly financial reports, Matson Inc. has already spent $5.2 million for cleanup, legal expenses and third-party claims stemming from the molasses spill.

Matson reported the spill to the state Department of Health’s Hazard Evaluation and Emergency Response office on Sept. 9, 2013, after workers spotted the brown substance in the water and reported an unusual odor. Divers located the source of the spill during an inspection of the company’s loading operation underwater. Investigators determined that the molasses leaked from a fist-size hole in a corroded pipe under Pier 52.

The company, which had pumped molasses from storage facilities on Sand Island onto ships bound for the mainland for refining, suspended operation of its molasses pipeline following the spill.

In the days that followed, the large brown plume created by the molasses consumed oxygen in the water, killing fish and coral heads. DOH contractors pulled 26,000 dead fish from the surface waters in the harbor and near Keehi Lagoon.

Matson and the state Department of Land and Natural Resources were conducting separate investigations into the cause and scope of the spill and the damage it caused. Neither has released its report.

A DLNR spokesman referred questions to the state attorney general because of possible pending litigation.

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Star-Advertiser reporter Andrew Gomes contributed to this report.