This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

AP: Bid Discrepancies Preceded La. Town Evacuation

By HOLBROOK MOHR

The explosives recycling company blamed for the evacuation of a Louisiana town in December misstated its storage capacity for dangerous materials when it sought a multimillion dollar Army contract in 2010, according to documents reviewed by The Associated Press.

Less than three years later, the town of Doyline was evacuated for a week when authorities found more than 6 million pounds of improperly stored military propellant at Explo Systems Inc. Some was spilling from containers or "hidden" among trees at the company's facility about 25 miles east of Shreveport, Louisiana authorities said.

In a proposal submitted to the Army and dated Jan. 21, 2010, Explo Systems said it had "storage capacity for more than 70 million pounds of explosive material between our Louisiana and Kentucky storage locations," according to documents obtained by the AP through a public records request.

Explo Systems was hired to demilitarize artillery propelling charges â¿¿ not to store them â¿¿ and intended to take the containers apart and recycle the materials. The propellant chemical known as M6 was to be sold primarily for coal mine blasting, and the arrangement meant the company could make money from both the Army and buyers of the recycled components. But when demand for M6 decreased, the company started taking in more than it could sell and ran out of bunker space.

Explo could have told the Army it didn't have enough space â¿¿ and risk defaulting on its contract â¿¿ but it didn't do that until authorities stopped allowing it to accept more charges. Days later, Doyline was evacuated because of concerns that any ignition could set off a massive chain-reaction blast.

"They certainly didn't want it to stop coming in. If they quit taking it, they lose that income," said Sheriff Gary Sexton in Webster Parish, where the facility is located on a Louisiana National Guard base called Camp Minden.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,269.43 +200.56 1.18%
S&P 500 1,994.71 +21.97 1.11%
NASDAQ 4,607.2640 +59.43 1.31%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs