Federal regulators have initiated legal action against the operators of an oil re-refinery plant in East Chicago, accusing them of violating wastewater permits by discharging excessive pollutants such as cyanide, mercury, oil, and grease into the Grand Calumet River. The 34-page complaint, filed on April 10, also alleges that Safety-Kleen Systems, Inc., based in Wisconsin, continuously failed to inform the East Chicago Sanitary District of these violations, contravening legal requirements. This lapse reportedly led to the Sanitary District breaching its own permit regulations.
The plant in question, located at 601 Riley Road, holds the distinction of being the largest oil re-refinery worldwide. The Department of Justice, representing the Environmental Protection Agency (EPA), highlighted multiple breaches of the federal Clean Water Act, dating back to at least April 2017. In January 2024, EPA inspectors noted the presence of “petroleum odors” and visible “oil sheens” in the river.
The company is obligated to conduct a pretreatment of contaminated wastewater at its own facility before discharging it into the municipal water system. Subsequently, the city processes this water at its municipal treatment plant for partial treatment before releasing it into the Grand Calumet River. The legal filing specifies that since April 10, 2017, Safety-Kleen has exceeded discharge limits on various pollutants, including ammonia, bis (2-ethylhexyl) phthalate, copper, cyanide, fluoride, lead, mercury, n‑octadecane, oil and grease, phenols, pH, and zinc.
The government is urging a federal judge to mandate Safety-Kleen to undertake all necessary measures to comply with the Clean Water Act. This includes potential fines of up to $68,000 per violation per day, along with other financial penalties. The EPA has previously identified the Grand Calumet River—a 22-mile stretch from Gary to Illinois—as a critically polluted area of concern, a designation it received in 1987. Before the enactment of the 1972 Clean Water Act, the area suffered from industrial waste discharges, which included hazardous chemicals like polychlorinated biphenyls (PCBs), polycyclic aromatic hydrocarbons (PAHs), mercury, cadmium, chromium, and lead, alongside oil and grease. These pollutants resulted in the death of aquatic life, closure of beaches, and jeopardized ecologically sensitive areas. Efforts to remediate the river have involved dredging toxic sediment and capping others, notably in areas such as the Indiana Harbor and Ship Canal.
