Cruise firm to pay $1.5 million

By Catherine Wilson
Associated Press Business Writer

MIAMI — The world's fourth-largest cruise line agreed Wednesday to pay a $1.5 million penalty for dumping oily waste into the ocean and keeping false logs to cover it up.

Norwegian Cruise Line, whose vessels include the Norwegian Star, waived attorney-client privileges, offered employees for interviews, and surrendered documents from its investigation into violations of environmental laws. Associated Press library photo

"Our oceans are not dumping grounds, and lying to the U.S. Coast Guard will be vigorously prosecuted," said Tom Sansonetti, assistant attorney general for the environment.

The prosecution is part of a federal crackdown on ocean pollution by cruise ships. The plea agreement marked the seventh environmental conviction for cruise lines.

Colin Veitch, Norwegian's president and chief executive officer, entered the plea on behalf of the company and said in a statement that the company was "pleased to have the investigation and correction of this regrettable violation behind us."

Norwegian admitted polluting the ocean by flushing an oil sensor with fresh water to make contaminated discharges look clean and dumping untreated waste water overboard. It is unknown how much oil and contaminated water was dumped.

An employee reported the mechanical trick to the Environmental Protection Agency. Later, after Star Cruises Ltd. bought Norwegian in 2000, an environment consultant for the new owner discovered the violations, and the company notified the government.

Norwegian fired or accepted resignations from seven senior officials who worked for the company on shore, the government said.

The penalty consists of a $1 million fine and $500,000 in contributions to environmental projects in Florida. The whistle-blower may collect up to $500,000.