Elon Musk’s Boring Company fined nearly $500,000 for illegal drilling fluid dumping in Las Vegas

Elon Musk’s Boring Company has been fined $493,297 by Clark County environmental regulators for illegally dumping drilling fluids into manholes, causing damage to local infrastructure.

According to the Clark County Water Reclamation District (CCWRD), Boring employees continued dumping fluids this summer despite inspectors’ orders to stop, Fortune reported. The next day, a company manager resumed discharges after assuming inspectors had left. CCWRD crews ultimately removed 12 cubic yards of drilling mud, spoils, and solid waste from county facilities.

The fluids reportedly contain toxic chemicals, including MasterRoc AGA 41S, which have caused burns to workers exposed to them.

The fine includes $131,297.08 to cover the district’s cleanup expenses. CCWRD cited “the egregious nature of the violations, the substantial damage to district infrastructure, the district emergency resources expended, and [Boring Company’s] acknowledgment of responsibility” as reasons for the penalty. Officials said only one other company has faced a fine of over $100,000 for wastewater discharge in the past three years.

Records show Boring executives attended a hearing in September, acknowledged responsibility, and agreed not to expand operations until certain conditions are met.

The violations came to light after an anonymous complaint in August. Inspectors confirmed active discharges into sewer lines and manholes and reported “extensive damage” to district infrastructure.

In a letter to CCWRD on August 15, Boring’s director of legal affairs acknowledged that water had been improperly discharged into the sewer system and said the company had taken steps to address the issue. A current Boring employee, speaking anonymously to Fortune, confirmed that workers were bypassing the required pretreatment of fluids before disposal.

Founded in 2017, Boring Company is a lower-profile arm of Musk’s empire, aiming to reduce traffic congestion by constructing tunnels that were originally pitched for autonomous Teslas. The company has raised over $900 million from Silicon Valley investors, including Sequoia Capital, but has faced repeated delays and safety incidents.

In Nevada, Boring’s primary project is a four-mile tunnel under the Las Vegas Convention Center. The company has previously faced regulatory scrutiny, including a $250,000 fine in September for nearly 800 environmental violations over the past two years.

In 2023, the company exposed the foundations of monorail pillars during excavation, temporarily halting operations, and faced multiple safety citations from Nevada OSHA.