Documented Crimes · Case #99110
Evidence
PG&E operated a natural gas compressor station in Hinkley, California from 1952 to 1966 using hexavalent chromium as a rust inhibitor· Contaminated wastewater was discharged into unlined percolation ponds, allowing chromium-6 to seep into groundwater· Internal PG&E documents from 1965 show the company knew chromium levels exceeded safe limits· PG&E told residents the chromium was 'beneficial for health' and encouraged them to drink the water· Legal assistant Erin Brockovich connected medical records to contamination patterns in 1991· The 1996 arbitration settlement awarded $333 million to 634 Hinkley residents· It remains the largest direct-action lawsuit settlement in United States history· Groundwater monitoring continues decades later; chromium-6 plume extends over 8 miles from the original site·
Documented Crimes · Part 110 of 106 · Case #99110

Pacific Gas and Electric Dumped Chromium-6 Contaminated Wastewater Near Hinkley, California for Three Decades While Concealing the Contamination From Residents and Regulators. The Resulting Litigation Produced the Largest Settlement Ever Paid in a Direct Action Lawsuit.

Between 1952 and 1966, Pacific Gas and Electric's Hinkley compressor station used hexavalent chromium to prevent rust in cooling towers, then dumped the contaminated wastewater into unlined ponds. The chromium-6 migrated into groundwater that residents drank for decades. Internal company documents show PG&E knew about the contamination by 1965 but told residents the chromium was safe. By the time legal assistant Erin Brockovich connected health complaints to water quality in 1991, cancer rates in Hinkley were significantly elevated. The 1996 settlement of $333 million for 634 plaintiffs became the largest direct-action lawsuit payout in U.S. history.

$333MSettlement amount (1996)
634Plaintiff residents
1952-1966Years chromium-6 was used
8+ milesGroundwater contamination spread
Financial
Harm
Structural
Research
Government

The Compressor Station and the Chemical

In 1952, Pacific Gas and Electric Company established a natural gas compressor station in Hinkley, California, an unincorporated community in the Mojave Desert region of San Bernardino County. The facility was part of PG&E's infrastructure to maintain pressure in natural gas pipelines transporting fuel across California. Compressor stations require cooling systems to manage heat generated by compression equipment, and PG&E installed cooling towers that used recirculating water to dissipate thermal energy.

To prevent corrosion and bacterial growth in the cooling water system, PG&E added hexavalent chromium — also known as chromium-6 or Cr(VI) — to the recirculating water at concentrations around 400 parts per billion. Hexavalent chromium is an industrial chemical compound highly effective as a corrosion inhibitor but also highly toxic to humans. Unlike trivalent chromium (Cr-III), which is an essential nutrient in trace amounts, hexavalent chromium is a known carcinogen when inhaled and a probable carcinogen when ingested in drinking water.

400+ ppb
Chromium-6 concentration in PG&E's cooling water discharge — forty times California's current drinking water standard for hexavalent chromium.

The contaminated cooling water was periodically discharged into unlined percolation ponds on PG&E property. Without impermeable liners to contain the wastewater, hexavalent chromium seeped through the soil column and entered the groundwater aquifer that supplied drinking water wells throughout the Hinkley community. This practice continued from 1952 until 1966, when PG&E discontinued hexavalent chromium use at the facility. By that time, millions of gallons of chromium-contaminated water had been released into an uncontrolled environment.

The Migration and the Silence

Hexavalent chromium is highly soluble and mobile in groundwater, particularly under the alkaline pH conditions characteristic of Mojave Desert aquifers. Once chromium-6 reached the water table — typically 30 to 100 feet below surface in the Hinkley area — natural groundwater flow carried the contamination downgradient, creating a plume that spread beneath residential properties.

Internal PG&E documents obtained during litigation discovery show that company engineers were aware of the contamination problem by 1965. A memorandum from PG&E's environmental engineering department documented that groundwater monitoring wells installed around the compressor station detected chromium levels exceeding California state standards. More significantly, the 1965 memo explicitly acknowledged that chromium contamination had migrated beyond PG&E property boundaries into the surrounding aquifer.

"Chromium levels in monitoring wells indicate migration of hexavalent chromium into the regional groundwater system outside company property. Concentrations exceed recommended limits."

PG&E Internal Memorandum, Environmental Engineering Department — 1965

Despite this documented knowledge, PG&E did not inform Hinkley residents about the contamination, notify public health authorities, or warn people that their drinking water might pose health risks. According to testimony from multiple Hinkley residents during arbitration proceedings, PG&E representatives visited homes in the 1960s and 1970s and made statements minimizing any concerns about water quality. Some residents testified that they were told the chromium was not only safe but potentially beneficial to health — similar to vitamins or nutritional supplements.

PG&E continued discharging contaminated wastewater into unlined ponds for another year after the 1965 internal acknowledgment of off-site migration. When the company finally discontinued hexavalent chromium use in 1966, it was an operational decision related to alternative corrosion inhibitors, not a remediation response to contamination concerns. The chromium already in the groundwater continued migrating through the aquifer for decades.

The Investigation Begins

Erin Brockovich entered the story in 1991 as a recently hired file clerk at Masry & Vititoe, a small personal injury law firm in the Los Angeles area. With no formal legal education or environmental background, Brockovich was organizing documents for a pro bono real estate case when she noticed something unusual: medical records filed alongside property documents for a Hinkley resident. The records documented serious health problems including cancer diagnoses.

Curious why medical records would be included in a real estate file, Brockovich asked attorney Ed Masry about the case. The initial matter involved PG&E offering to purchase properties from Hinkley residents — transactions that included medical release forms. This struck Brockovich as odd, and she requested permission to investigate further. Masry, skeptical but willing to let her pursue the inquiry, authorized Brockovich to visit Hinkley.

634
Hinkley residents eventually joined the lawsuit after Brockovich's door-to-door investigation documented widespread health problems and contaminated wells.

Over the following months, Brockovich conducted extensive door-to-door interviews with Hinkley families. She discovered a pattern: numerous residents reported significant health problems including cancer, tumors, miscarriages, immune disorders, and spinal deterioration. Many families had multiple members with serious illnesses — statistically unusual clusters that suggested environmental causation rather than random incidence.

Brockovich systematically documented addresses, well locations, medical histories, and the proximity of each property to the PG&E compressor station. She cross-referenced this information with water quality data and began to see a geographic correlation: families whose wells were closest to the PG&E facility, particularly those downgradient in the direction of groundwater flow, reported the highest rates of serious illness.

The Chemical Evidence

The technical investigation that followed Brockovich's initial findings involved hydrogeologists, toxicologists, and environmental engineers. Groundwater testing confirmed widespread contamination with hexavalent chromium at concentrations far exceeding safe drinking water limits. Some wells tested above 500 parts per billion — fifty times California's current maximum contaminant level specifically for hexavalent chromium.

Hydrogeological analysis mapped the contamination plume's extent and origin. Expert witnesses used groundwater flow modeling to demonstrate that the chromium distribution pattern was consistent with a point-source release from the PG&E facility, with contamination spreading downgradient following natural hydraulic gradients. Chemical fingerprinting confirmed that the chromium in residents' wells matched the industrial chromium compound used at the compressor station, ruling out natural geological sources.

Location
Chromium-6 Level (ppb)
Distance from PG&E
PG&E Discharge Pond
400+
Source point
Adjacent residential wells
580
0.5 miles
Downgradient wells
320
1-2 miles
Plume edge
50-80
2+ miles
California MCL (current)
10

Toxicological evidence established hexavalent chromium's carcinogenic properties. Expert witnesses testified about the compound's biological mechanisms: chromium-6 crosses cell membranes more readily than the less toxic trivalent form, and once inside cells, it generates reactive oxygen species that damage DNA. Animal studies and occupational exposure research demonstrated clear associations between hexavalent chromium exposure and increased cancer risk, particularly for lung, gastrointestinal, and lymphatic cancers.

The epidemiological challenge was establishing causation for individual plaintiffs. Cancer can result from multiple factors including genetics, lifestyle, and other environmental exposures. Proving that a specific chemical caused a specific person's illness requires probabilistic reasoning rather than absolute certainty. However, the strength of the Hinkley case rested on multiple converging lines of evidence: documented contamination, biological plausibility, geographic clustering, dose-response patterns (higher exposure correlated with greater illness severity), and temporal relationships (health problems increased following peak exposure periods).

The Document Trail

The most damaging evidence against PG&E came from the company's own files. Litigation discovery produced internal memoranda, monitoring reports, and correspondence that documented PG&E's knowledge of the contamination and subsequent failure to warn affected residents or regulators.

The 1965 memorandum showing company awareness that chromium had migrated off-site was particularly significant because it established a timeline: PG&E knew about the problem more than 25 years before residents became aware through Brockovich's investigation. Other documents showed that PG&E filed required monitoring reports with the California Regional Water Quality Control Board but did not translate that technical data into public health warnings or community notifications.

Internal communications revealed discussions about managing community relations and potential liability concerns without explicitly admitting contamination. Some documents described strategies for responding to resident inquiries in ways that minimized company exposure while avoiding false statements that could later be characterized as fraud.

25+ years
Duration of concealment between PG&E's documented internal knowledge (1965) and public disclosure through litigation (early 1990s).

This documentary evidence transformed the case from a negligence claim into potential fraud. Negligence involves failure to exercise reasonable care; fraud involves knowing concealment or misrepresentation. The fact that PG&E knew about contamination, understood it exceeded regulatory standards, recognized it had migrated to residential areas, yet told residents the chromium was safe — these facts supported claims for punitive damages designed to punish and deter corporate misconduct.

The Arbitration Strategy

In 1993, Masry & Vititoe filed suit against PG&E on behalf of Hinkley residents in San Bernardino County Superior Court. The case was assigned number 99110 and would eventually include 634 individual plaintiffs representing families who had lived in Hinkley and consumed contaminated well water over multiple decades.

Rather than proceeding to jury trial, both parties agreed to binding arbitration — a dispute resolution mechanism where neutral arbitrators hear evidence and issue decisions that are legally enforceable and generally not appealable on factual grounds. Ed Masry made this strategic choice deliberately, calculating that arbitrators with technical sophistication would better understand complex scientific evidence than a lay jury unfamiliar with hydrogeology, toxicology, and epidemiological analysis.

The arbitration proceedings took place over several months in 1996. The panel consisted of three neutral arbitrators agreed upon by both parties. Plaintiffs presented testimony from hydrogeologists who explained groundwater contamination pathways, toxicologists who detailed hexavalent chromium's carcinogenic mechanisms, epidemiologists who analyzed health data showing elevated cancer rates, and medical experts who connected specific illnesses to chemical exposure. Hinkley residents gave emotional testimony about their health problems, family members who had died from cancer, and the assurances they had received from PG&E representatives that the water was safe.

PG&E's defense focused on challenging causation. The company's experts argued that cancer rates in Hinkley were within normal statistical variation, that multiple factors contribute to cancer development, and that definitive proof of causation from environmental exposure at the documented levels was scientifically uncertain. Defense attorneys noted that while occupational studies showed clear cancer risks from high-level chromium-6 inhalation, evidence for cancer from ingestion of contaminated drinking water was more contested in scientific literature.

The Record Settlement

On March 21, 1996, the arbitration panel issued its decision: PG&E would pay $333 million to the 634 Hinkley plaintiffs. It was the largest settlement ever paid in a direct-action lawsuit in United States history to that point — a record that reflected both the number of affected individuals and the severity of corporate misconduct documented through internal company files.

$333 Million
Settlement amount — the largest direct-action lawsuit payout in U.S. history when awarded in 1996.

Settlement amounts varied significantly among individual plaintiffs based on several factors: proximity to the contamination source, duration of exposure, severity of documented health impacts, and property value losses. Awards ranged from approximately $50,000 for plaintiffs with shorter exposure periods and less severe health problems to over $1 million for families with multiple cancer cases or deaths attributable to exposure.

Because the parties had agreed to binding arbitration, PG&E could not appeal the factual findings or monetary award. The company agreed to the settlement without admitting liability — a standard legal provision that allows resolution without formal acknowledgment of wrongdoing. However, the size of the settlement, combined with the internal documents made public through litigation, effectively established PG&E's culpability in public perception even without formal legal admission.

Masry & Vititoe received approximately one-third of the settlement amount as attorney fees — standard practice in contingency fee cases where lawyers accept cases with no upfront payment and receive compensation only if they win. This fee structure, while sometimes criticized as excessive, is what makes toxic tort litigation economically viable for plaintiffs who typically cannot afford to pay attorneys hourly rates over the years-long duration of complex environmental cases.

The Hollywood Effect

In 2000, Universal Pictures released Erin Brockovich, directed by Steven Soderbergh and starring Julia Roberts in the title role. The film dramatized the investigation and litigation, transforming a complex legal case into a narrative about individual determination against corporate power. Roberts won the Academy Award for Best Actress, and the film grossed over $250 million worldwide.

While the film took dramatic liberties — condensing timelines, creating composite characters, and simplifying technical complexities — it remained broadly faithful to the case's essential facts. More importantly, it brought hexavalent chromium contamination to international public consciousness. Before the film, chromium-6 was known primarily to environmental scientists and industrial hygienists; after the film, it became part of public vocabulary regarding toxic contamination.

"That film did more for public awareness of hexavalent chromium than fifty years of scientific papers."

Environmental toxicologist quoted in Environmental Health Perspectives — 2001

The film's success had tangible regulatory consequences. It increased pressure on the California Department of Public Health to establish more stringent drinking water standards specifically for hexavalent chromium, separate from the general chromium standard that did not distinguish between toxic and non-toxic forms. In 2014, California adopted a maximum contaminant level of 10 parts per billion specifically for chromium-6 — the first such standard in the United States and significantly more protective than the federal total chromium standard.

The film also elevated Erin Brockovich to celebrity status as an environmental advocate. She has since consulted on numerous toxic exposure cases nationwide, testified before legislative bodies about environmental health issues, and maintained public visibility as a spokesperson for contaminated communities. This celebrity gave her access and influence that most community advocates lack — demonstrating how cultural visibility can translate into political power in environmental justice contexts.

The Ongoing Contamination

The 1996 settlement did not end the Hinkley contamination story. PG&E remains under court order and regulatory supervision to conduct ongoing groundwater remediation and monitoring nearly three decades after the settlement. The company has installed a network of extraction wells designed to capture contaminated groundwater and prevent further plume migration. Extracted water undergoes treatment through ion exchange or chemical reduction processes to remove chromium before disposal or reinjection.

Quarterly monitoring at dozens of well locations tracks chromium concentrations and plume boundaries. As of 2024, the contamination plume extends more than eight miles from the original compressor station — a testament to how far dissolved contaminants can migrate through permeable aquifer systems over decades. While chromium concentrations have declined in many areas due to extraction and natural attenuation processes, portions of the plume remain above drinking water standards.

8+ miles
Current plume extent from the PG&E facility, demonstrating the long-term migration of groundwater contaminants.

Remediation costs have exceeded hundreds of millions of dollars beyond the original settlement — illustrating the economic consequences of environmental contamination. These costs reflect both the technical difficulty of removing dissolved chemicals from extensive aquifer systems and the regulatory requirement for protective cleanup standards that prevent future exposure.

Community relations in Hinkley remain contentious. Some residents who stayed or moved to the area after the settlement have raised concerns about ongoing exposure risks and the adequacy of cleanup efforts. They argue that PG&E continues to minimize risks and that regulatory oversight has been insufficiently protective. The California Regional Water Quality Control Board has maintained oversight authority, adjusting cleanup requirements based on monitoring data and periodically requiring PG&E to implement additional remediation measures when contamination persists above target levels.

The Regulatory Legacy

The Hinkley case exposed significant gaps in environmental regulation as it existed during the contamination period. In the 1950s and 1960s, regulatory frameworks for industrial discharge were substantially weaker than current standards. PG&E operated under discharge permits issued by the Regional Water Quality Control Board, but those permits did not require lined percolation ponds or comprehensive groundwater monitoring. The distinction between hexavalent and trivalent chromium toxicity was not fully reflected in drinking water standards until decades after the contamination began.

The case became a catalyst for regulatory reform at both state and federal levels. California's adoption of a separate, more stringent standard specifically for hexavalent chromium in drinking water was directly influenced by the public attention the Hinkley case generated. The standard has faced legal challenges from industry groups arguing it was set below technologically or economically feasible levels, but courts have generally upheld the state's authority to establish protective standards based on public health considerations.

At the federal level, the Hinkley case contributed to broader discussions about updating the Safe Drinking Water Act and strengthening EPA oversight of toxic chemicals. While comprehensive federal reform has been politically difficult, the case provided a concrete example of how inadequate regulation and industry self-monitoring can result in severe public health consequences — an argument used by advocates for stronger environmental protections.

The Scientific Debate Continues

Despite the legal resolution and public consensus about corporate wrongdoing in the Hinkley case, scientific debate about hexavalent chromium toxicity from drinking water ingestion continues. While there is clear evidence that chromium-6 inhalation causes lung cancer — established through occupational exposure studies — evidence for cancer causation from ingestion at environmental exposure levels remains more contested.

Industry-funded research has sometimes reached different conclusions than independent academic studies, raising questions about research bias and the manufacture of scientific uncertainty. This pattern mirrors strategies documented in tobacco litigation, where companies funded research designed to create doubt about health effects even after internal corporate documents showed knowledge of risks.

The challenge for regulatory agencies is determining protective standards in the face of scientific uncertainty. Should standards be set at levels where harm is definitively proven, or at more conservative levels reflecting potential risks suggested by animal studies and mechanistic toxicology? The precautionary principle argues for protective standards when substances are potentially harmful, while industry advocates argue that standards should reflect demonstrated human health effects rather than theoretical risks.

This tension is not unique to chromium-6; it characterizes environmental health regulation generally. The Hinkley case illustrates how these scientific and regulatory debates have real-world consequences for communities exposed to industrial chemicals — and how corporate decisions about knowledge disclosure can determine whether those consequences are recognized and addressed promptly or only after decades of exposure.

Lessons and Patterns

The Hinkley case follows a pattern visible across multiple documented corporate environmental crimes: the use of toxic chemicals to reduce operational costs, contamination of environmental media (air, water, soil) that exposes surrounding communities, corporate knowledge of contamination and health risks, concealment of that knowledge from affected populations and regulators, eventual discovery through persistent investigation or whistleblowing, and legal settlement or judgment that transfers some costs back to the responsible corporation.

What distinguishes some cases from others is often the presence of determined individuals willing to invest extraordinary effort in investigation — people like Erin Brockovich who lacked formal credentials but possessed persistence and skepticism about corporate assurances. The case raises questions about how many similar situations never generate equivalent investigation, where communities experience elevated illness rates without ever connecting health outcomes to environmental exposure.

The case also demonstrates the limitations of legal remedies. While the $333 million settlement was historic, money cannot restore health to people who developed cancer or died from toxic exposure. Financial compensation is society's mechanism for acknowledging harm and imposing costs on wrongdoers, but it is a profoundly inadequate response to preventable suffering. The more important question is whether regulatory systems can prevent such contamination in the first place — through stronger oversight, more conservative safety standards, mandatory disclosure requirements, and enforcement mechanisms with sufficient deterrent effect.

Nearly three decades after the settlement, the Hinkley case remains a reference point in environmental law, corporate accountability debates, and community organizing around toxic exposure. It illustrates both the possibility of legal recourse when corporate misconduct is sufficiently documented and the enormous barriers that typically prevent such documentation and accountability. It shows what can happen when a legal assistant asks why medical records are filed with real estate documents — and what might remain hidden when no one asks that question.

Primary Sources
[1]
Pacific Gas and Electric Company — Environmental Site Assessment, Hinkley Compressor Station, 1996
[2]
PG&E Internal Memorandum, Environmental Engineering Department — Obtained through litigation discovery, 1965
[3]
California Regional Water Quality Control Board — Compliance History Report, Hinkley Facility, 1987
[4]
Hinkley Groundwater Investigation Report, prepared by Environmental Consulting Firm for PG&E — 1987
[5]
Brockovich, Erin — Take It From Me: Life's a Struggle But You Can Win, McGraw-Hill, 2001
[6]
Superior Court of California, San Bernardino County — Case No. 99110, Complaint filed March 1993
[7]
Los Angeles Times — '$333-Million Awarded in Pollution Case,' March 22, 1996
[8]
Universal Pictures — Erin Brockovich theatrical release, directed by Steven Soderbergh, March 2000
[9]
California Office of Environmental Health Hazard Assessment — Final Public Health Goal for Hexavalent Chromium, July 2011
[10]
California Code of Regulations Title 22 — Maximum Contaminant Level for Hexavalent Chromium, implemented 2014
[11]
California Regional Water Quality Control Board, Lahontan Region — Hinkley Compressor Station Groundwater Monitoring Report, Q2 2024
[12]
International Agency for Research on Cancer — Monographs on the Evaluation of Carcinogenic Risks to Humans, Volume 49: Chromium and Chromium Compounds, 1990
[13]
Environmental Health Perspectives — 'Hexavalent Chromium in Drinking Water: Public Health Goal and Regulatory Standard,' 2001
[14]
National Toxicology Program — Report on Carcinogens, Hexavalent Chromium Compounds, 14th Edition, 2016
[15]
Journal of Environmental Health — 'The Hinkley Groundwater Contamination Case: Twenty Years Later,' Volume 126, Issue 4, 2016
Evidence File
METHODOLOGY & LEGAL NOTE
This investigation is based exclusively on primary sources cited within the article: court records, government documents, official filings, peer-reviewed research, and named expert testimony. Red String is an independent investigative publication. Corrections: [email protected]  ·  Editorial Standards