Record Settlement for Violating Bay Protection Law
Published: November, 2004
Hanson Aggregates Mid-Pacific, Inc. paid $373,000 to BCDC (the San Francisco Bay Conservation and Development Commission)–the California state agency responsible for protecting the San Francisco Bay and providing public access to the Bay shoreline–to settle alleged violations by Hanson of the California law administered by BCDC. The amount is the largest paid to settle an enforcement case in the Commission’s 39-year history.
Sand, which has been commercially mined from the bottom of the Bay since the 19th century, is used to make concrete and asphalt, as well as for other construction purposes. In 1999, Hanson, a multinational corporation headquartered in Great Britain, acquired sand mining rights from two local sand mining companies. An investigation by BCDC’s staff found that, at least since 1997, significantly more sand was being mined than the amount authorized by BCDC permits. These violations continued after Hanson took over the mining rights from the local companies. BCDC initiated an enforcement action against the sand miners for violations of the McAteer-Petris Act, the law that established BCDC and requires permits for activities in the Bay, including sand mining. Hanson has chosen to resolve the violations through the settlement and has advised BCDC that the illegal practices have ended.
On October 24, 2003, Attorney General Bill Lockyer filed a separate lawsuit against Hanson and its predecessors seeking $200 million in damages to recover the value of sand illegally taken from public property and unpaid royalties owed to the State. BCDC’s settlement does not affect the lawsuit brought by the Attorney General.
Barbara Kaufman, the chair of BCDC, said, “I believe this settlement is just and fair. Hanson deserves credit for taking responsibility for the violations and bringing a quick resolution to this enforcement problem.”
Will Travis, BCDC’s executive director added, “The amount of the fine reflects the gravity of Hanson’s past violations and is an important precedent. This settlement, along with Governor Schwarzenegger’s approval last week of Senate Bill 1568, which allows our Commission to impose higher penalties on violators, should make it clear that the laws passed to protect the Bay will be aggressively enforced.”
