Tuesday, August 10, 1999 (Washington, DC)

Federal Railroad Administrator Jolene M. Molitoris today joined United States Attorney Edward L. Dowd Jr. and Missouri’s Division of Motor Carrier and Railroad Safety Director Stephen R. Waters to report that Superior Hauling and Fast Transit (SHAFT) of St. Louis and the company’s vice president plead guilty to felony charges involving illegal rail shipments of hazardous materials. The partners had failed to file a registration statement with the U.S. Department of Transportation and made false statements to federal and Missouri officials.

"The successful prosecution of this case sends a strong message to shippers and transporters that we are enforcing hazardous materials transportation laws to ensure safety, President Clinton’s highest transportation priority," U.S. Transportation Secretary Rodney E. Slater said.

As part of the plea agreement, the motor carrier agreed to pay a fine of $100,000, serve a three-year term of probation, and institute and implement a hazardous materials compliance program. The program requires SHAFT to prepare, issue, and carry out a plan that addresses registration, training for its hazardous materials employees, and compliance with hazardous materials communication standards. Tony Pallme, SHAFT vice president, faces a maximum penalty of $250,000 and/or up to five years in prison, or both.

"This investigation represents a critical cooperative enforcement effort of this office, the Federal Railroad Administration, the DOT Office of Inspector General, and the State of Missouri in vigorously prosecuting companies and corporate officials who violate the hazardous materials transportation laws," said Dowd. "The laws were designed to protect life and property against the risks inherent in transporting hazardous materials and willful violation of these laws is not an acceptable business practice."

In July 1992, the department’s Research and Special Programs Administration (RSPA) advised SHAFT of requirements to register the shipping or transporting of hazardous materials. In February 1997, the company first informed RSPA that it intended to haul hazardous materials and filed a registration statement.

"Safety is the Clinton-Gore administration’s top priority, and the Federal Railroad Administration will aggressively pursue all those who violate the safety laws of this country," Molitoris said.

"Shippers and transporters are required to register their hazardous materials shipments," RSPA Administrator Kelley Coyner said. "This helps safeguard firefighters and other emergency responders and is an important first step in protecting the public and the environment in case of a spill."

Waters added, "This case shows that all levels of commercial vehicle and railroad safety enforcement, state and federal, must remain vigilant against those who scoff at safety regulations designed to protect the public. We appreciate the U.S. Attorney's efforts that, by this case, make clear that carriers of hazardous materials may not with impunity circumvent the efforts of state and federal inspectors."

An investigation initiated by the FRA, the State of Missouri Division of Motor Carrier and Railroad Safety, and the U.S. Attorney’s Office found that SHAFT transported and shipped hazardous materials before it registered. A parallel investigation also revealed that Pallme misled FRA and state officials when he said that the trucking company had not shipped hazardous materials in 1996.

In addition to Missouri’s Division of Motor Carrier and Railroad Safety, the department’s Office of Inspector General, FRA’s trial attorney, Special Assistant United States Attorney Jonathan L. Kaplan, and Assistant United States Attorney Patrick M. Flachs assisted in the case.