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Montana Oil Executive Given 18-Month Sentence For Explosion

Dan Boyce

The president of an oil processing company whose Eastern Montana plant exploded in 2012 was sentenced to 18 months in federal prison.

The Billings Gazette reported Peter Margiotta was also sentenced to three years of supervised release for his part in the explosion that injured two workers and started a fire that burned for eight days.

The resident of Edmonton, Alberta, Canada, was ordered to pay yet-to-be-determined restitution to the workers and a $50,000 fine.

Margiotta, 63, was found guilty in September 2019 of conspiracy and two Clean Air Act violations.

He was president of the now-defunct Custom Carbon Processing Inc. near Wibaux, which recycled waste using natural gas liquids.

A foreman warned company management the facility had no room for a load of natural gas condensate that was delivered to the facility Dec. 29, 2012. He also warned lines to outside storage tanks were frozen, but managers ordered the natural gas stored.

The condensate filled the building with flammable vapors that were ignited by a heater in a break room.

Prosecutors argued Margiotta ignored warnings and failed to install explosion-proof wiring and proper ventilation in the facility.

Margiotta's defense attorneys contended he was not present and the fire was accidental.

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