Debris From Ship Sandblasting Dumped Into Bay : Firm Working for Navy Pleads Guilty in Pollution Case

In the first prosecution of its kind in the region, a company that uses sandblasting to remove paint from Navy ships pleaded guilty Tuesday to charges that it violated federal laws by dumping toxic paint waste into San Diego Bay.

In pleading guilty to three misdemeanor criminal charges, Zarcon Corp. acknowledged that it had discharged lead, copper, mercury and other toxic materials during sandblasting operations on three occasions in 1987 and 1988.

The dumping constituted violations of the Clean Water Act, which governs dumping into the nation’s waterways. Federal prosecutors said the company faces a fine of as much as $75,000 at a sentencing hearing in February.

Plea by Executives

Also Tuesday, Zarcon’s two top executives entered into deferred prosecution agreements with the government. Company President James D. Kuvelas, 43, admitted that he bears responsibility for the conduct of negligent employees who allowed the hazardous wastes to flow into the bay. Neither Kuvelas, nor his brother, Secretary-Treasurer Jack Kuvelas, the other executive indicted in the case, could be reached for comment Tuesday.

Under the agreements, charges against the Zarcon executives will be dropped if they follow through with negotiations aimed at obtaining permits from state water pollution control authorities for the sandblasting. If they break off the negotiations or fail to comply with other conditions, the prosecution will proceed, said Assistant U.S. Atty. Charles S. Crandall, who served as a legal adviser on the case.

“This is the first of these cases we’ve come across, and we suspect there may be other illegal sandblasting operations out there,” said Crandall, who worked on the case with Assistant U.S. Atty. Melanie K. Pierson. “Hopefully, this case--which I might add involved a very unhealthy disrespect for the law--will send a strong message to the industry.”

Settlement ‘Satisfactory’

Attorney Raymond J. Coughlan, who represented Zarcon and Jack Kuvelas, said the settlement is “satisfactory” considering the government chose to pursue criminal charges.

“I don’t believe the case should ever have been criminalized,” Coughlan said. “There is no real culpability here. . . . But we will work with the state water board in good faith to rectify this situation.”

The indictment of Zarcon in May came after an investigation by the Hazardous Waste Task Force, an inter-governmental group formed to beef up local enforcement of laws protecting the environment.

Zarcon is a small company that contracts with the U.S. Navy to sandblast the interior and exterior of ships that need repainting. Coughlan said a giant vacuum is used to suck up tons of toxic grit stripped off the vessels. The suction is created through the use of seawater, which picks up a residue of paint waste before it is returned to the bay.

Surveillance Photos

Task force officials concluded that the discharge was illegal, and learned that Zarcon was operating without state permits. Aided by Naval Investigative Services, task force officials took surveillance photographs of Zarcon operations and issued an indictment based on three instances of dumping: On Nov. 19, 1987, at Pier No. 1 at the foot of 8th Street, and on March 3 and March 9 of this year at the 32nd Street Naval Station.

Crandall, who was unable to estimate the amount of wastes discharged by Zarcon, said the company’s conduct reflected an attitude that, “Maybe if we close our eyes, the (regulators) will go away and not notice us.”