By Lisa Shumaker
CHICAGO (Reuters) - Agricultural processor Archer Daniels Midland Co could face a criminal indictment over how the operator of the third-largest U.S. barge fleet discharged wastewater at a Missouri facility, according to a company filing with the Securities and Exchange Commission.
Since February 2008, several employees have received grand jury subpoenas. On January 14, the U.S. Environmental Protection Agency told ADM it intends to seek an indictment, according to the filing, made on Monday.
The Missouri facility under investigation is ADM's barge subsidiary, American River Transportation Co (ARTCO) in St. Louis, said ADM spokesman Roman Blahoski.
The EPA would not comment on whether ADM was under investigation but agency spokesman Dave Ryan said violations usually occur when a company discharges wastewater without a permit or discharges pollutants in violation of the permit terms.
ADM, based in Decatur, Illinois, has a permit to discharge wastewater in St. Louis that expires in March 2010, according to the EPA's website. The website showed no violations of the Clean Water Act by ADM or ARTCO in the last five years.
Negligent criminal violations are punishable by a fine of up to $25,000 per day or one year in prison, according to the EPA. Knowing violations are punishable by a fine of up to $50,000 per day or three years in prison.
ADM told the SEC that it does not have enough information to estimate any potential penalties.
The EPA does not issue indictments, Ryan said. A U.S. Attorney within the Department of Justice would convene a grand jury and issue an indictment.
ADM is one of the largest U.S. agricultural processors of corn, soybeans and wheat and the second-largest U.S. ethanol producer. It maintains a fleet of 2,150 barges to transport grain from its elevators to processing and export facilities.
Barges are periodically cleaned and the wastewater must be disposed of properly, especially when a barge transported salt or fertilizer.
High concentrations of chemicals in rivers can contribute to changes in aquatic plant and fish life, including fish kills and algae blooms.
ADM's stock closed down 1.8 percent, or 51 cents, at $28.52 on the New York Stock Exchange. ADM's stock has rebounded from its 12-month low of $13.53 in October on growing confidence in the company's ability to weather lower commodity prices and reduced demand for livestock feed. Shares have not traded above $30 since July as investors worry that losses in ethanol will erode earnings in other divisions.
(Reporting by Lisa Shumaker; Editing by Marguerita Choy, Gary Hill)
