Boring Co.'s Hazardous Tunnels Face Off Against OSHA's Weak Oversight

Elon Musk’s tunneling venture, The Boring Company, is under increased scrutiny after being hit with a fine close to $500,000 for unlawfully disposing of drilling fluids into Las Vegas manholes, according to a

. The report alleges that the company persisted in dumping the fluids even after inspectors instructed them to stop, only halting temporarily before resuming once they thought inspectors had departed. The hazardous fluids, which include chemicals such as MasterRoc AGA 41S, not only pose health hazards but also inflicted substantial harm on county infrastructure, leading to the sizable fine, the report stated. This incident adds to a growing list of regulatory issues for The Boring Company, which has faced repeated citations for safety and environmental breaches in Nevada.

The situation became more complicated as Nevada’s Occupational Safety and Health Administration (OSHA) came under fire for its response to “willful” violations it had cited against The Boring Company. In a comprehensive reply to Fortune’s inquiry, Nevada OSHA revealed that legal advisors had reviewed and ultimately rescinded three citations due to incomplete paperwork and procedural mistakes, the

said. The agency further admitted to inconsistencies in its records, such as missing documentation of meetings and incorrect dates, which raised questions about the agency’s transparency, the report noted. Chris Reilly, speaking for the Nevada Governor’s Office, rejected claims of political involvement, explaining that while the office regularly supports constituents, it does not influence the outcomes, the report said.

Suspicions grew after a record of a meeting between The Boring Company and the Governor’s Office was deleted. Nevada OSHA insisted that the meeting was included in an updated case file, but critics argued that the absence of public documentation eroded confidence in the process, the report said. This episode has reignited concerns about OSHA’s autonomy and its capacity to uphold safety standards without political interference, especially in prominent cases involving major corporations, the report said.

The Boring Company’s environmental breaches are part of a larger trend of regulatory disputes. In September 2025, the Bureau of Water Pollution Control imposed a fine of nearly $250,000 on the company for repeated violations, including discharging untreated groundwater onto public streets, the

said. The company has also been cited for safety violations, such as damaging infrastructure by exposing monorail supports during tunneling, the report said. Despite these setbacks, Boring Co. continues to advance its ambitious tunnel projects in Nevada, which Musk promotes as a remedy for urban traffic problems.

The repercussions go beyond financial penalties. Nevada OSHA’s management of the case has caused unease among employees, with some expressing concern about possible consequences for questioning the rapid withdrawal of citations, the Fortune report said. In response, agency leaders have introduced new procedures to improve case file handling and boost staff morale, stressing their dedication to fair enforcement, the report said. Meanwhile, The Boring Company’s pattern of delays and safety problems has drawn parallels to Musk’s other high-profile companies like SpaceX and Neuralink, though it remains a less publicized part of his business empire, the Fortune report said.

As The Boring Company deals with these obstacles, the situation highlights the ongoing tension between encouraging technological innovation and maintaining regulatory oversight. For Nevada OSHA, the episode serves as a reminder of the need for thorough procedures and openness in major regulatory matters.