This Day On The Street
Continue to site right-arrow
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!

Docs: La. Firm Overstated Storage For Explosives

Stephen D. Abney, spokesman for the Army's Joint Munitions Command, said the plan was for Explo to resell the material, not store it. Asked if Explo Systems misled the Army and could face charges, Abney said only that an investigation was ongoing.

"I don't think anybody dreamed of them storing that much," Abney said.

Company officials have not responded to numerous telephone calls seeking comment.

However, a Kentucky businessman with ties to the company said Explo mistakenly overstated its storage capacity by more than 60 million pounds.

Explo Systems took apart propellant charges â¿¿ used to fire artillery rounds â¿¿ and sold a chemical called M6 to companies that could use it for coal mine blasting, according to documents the company provided to the Army. It also sold other parts of the recycled propellant charges.

The arrangement meant the company could make money from the Army and buyers of the recycled components.

The Army gave Explo a $2.9 million annual contract in March 2010 to dismantle up to 450,000 propelling charges a year with options for renewal for four years. It's not clear exactly how much of the explosive material the company was able to sell.

Each charge contains 20.6 pounds of M6, according to Explo Systems' plan, meaning the company could take in nearly 9.3 million pounds each year under the contract.

At some point, the company ran out of storage room in Louisiana and in early 2012 asked to lease more space at the base, the Guard said. The company was turned down because it was about $400,000 behind on rent.

A state trooper following up on the October explosion discovered the improperly stored material, and the company informed the Army on Nov. 27 that Louisiana authorities wouldn't allow it to accept more explosives pending an ongoing investigation.

Doyline was evacuated because of concerns that any ignition â¿¿ such as a lightning strike or a brush fire â¿¿ could set off a massive chain-reaction blast.

2 of 4

Select the service that is right for you!

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!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • 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