“Given the extraordinary number of violations, NDEP has decided to exercise its discretion to reduce the penalty to two $5,000 violations per permit, which it believes offers a reasonable penalty that will still serve to deter future non-compliance conduct,” regulators wrote in the letter.
Payment of the penalty isn’t required until after the dispute resolution process is complete, a state spokesperson said. In the letter, the agency reminded the company that it “reserves the right to direct TBC to cease and desist construction activities” under the agreement.
In the past, Musk has espoused paying penalties rather than waiting for approvals as a way of doing business.
“Environmental regulations are, in my view, largely terrible,” he said at an event with the libertarian Cato Institute last year. “You have to get permission in advance, as opposed to, say, paying a penalty if you do something wrong, which I think would be much more effective.”
Neither Musk nor Boring responded to requests for comment for this story.
The Sept. 22 letter documents the latest in a string of alleged violations of state and local regulations by The Boring Co. since it began construction in 2019 of the Loop project, which uses driver-operated Teslas to move people through the tunnels. The project, initially a 0.8-mile underground route connecting the sections of the Las Vegas Convention and Visitors Authority campus to each other, has grown to a planned 68 miles of tunnels and 104 stations across the Las Vegas Valley. It’s carried out in partnership with the LVCVA, the tourism board best known for the “What Happens Here, Stays Here” slogan.
Boring uses a machine known as Prufrock to dig the 12-foot-diameter tunnels, applying chemical accelerants as part of the process. For each foot the company bores, it removes about 6 cubic yards of soil along with any groundwater, according to a company document prepared for state environmental officials.
Because it is privately funded and receives no federal money, the project is exempt from many exhaustive governmental vetting and environmental analysis requirements. But it is required to obtain state permits to ensure the waste does not contaminate the environment or local water sources.
A January story by ProPublica and City Cast Las Vegas documented how the company worked to escape county and state oversight requirements by arguing its project didn’t fit under existing regulations and promising to hold itself accountable through independent audits — all while being cited for permitting and water pollution violations in 2019, 2021, 2022 and 2023. Last year, the company successfully lobbied to be exempted from holding a county “amusement and transportation system” permit, arguing instead for an oversight plan that removed multiple layers of inspection.