Small refiners to upgrade under US clean-air settlements

Nov. 3, 2003
The US Department of Justice and the Environmental Protection Agency last month announced clean-air settlements with four small refiners.

The US Department of Justice and the Environmental Protection Agency last month announced clean-air settlements with four small refiners. In each case the companies agreed to pay a fine and upgrade equipment.

EPA said that under the agreements, Coastal Eagle Point Oil Co., CHS Inc. (Cenex), and Ergon Refining Inc. will pay a total civil fine of $2.9 million.

They also will implement supplemental and other environmental projects valued at $1.6 million. These include a plan to reduce idling truck emissions in New Jersey and provide improved equipment for first responders in Mississippi and West Virginia. The states of Mississippi, Montana, New Jersey, and West Virginia joined in the settlements.

DOJ and EPA also announced a separate, narrower agreement with National Cooperative Refining Association (NCRA). NCRA will pay a penalty and implement supplemental environmental projects collectively valued at more than $1.8 million for its 75,000 b/d McPherson, Kan., refinery. Kansas will join in this settlement.

Industry statement

Vicksburg, Miss.-based Ergon said in a statement that it plans to monitor the effectiveness of its new clean-air plan.

"We decided to be proactive," said Paul Young, vice-president of environment, health, and safety, for Ergon. "Our participation in the voluntary program and the agreement to significantly reduce air emissions is the right thing to do for the environment, the community, and the company."

Ergon said it will invest in excess of $4 million over the next 5 years for installation of enhanced controls for air emission reductions. The company's 23,000 b/d refinery at Vicksburg, and its 18,600 b/d plant at Newell, W.Va., were part of the EPA agreement. An earlier agreement was signed with EPA over the company's 58,000 b/d Lion Oil refinery at El Dorado, Ark.

EPA reaction

"Today's settlements mean we're one step closer to bringing America's oil refineries into compliance with our Clean Air Act standards. This means cleaner air for our communities and citizens," said Tom Sansonetti, Environment and Natural Resource Division assistant attorney general. "Companies that break environmental laws not only endanger public health, but they also harm our precious natural resources."

EPA said experience under previous global refinery consent decrees suggests that flaring at these refineries may be reduced by more than 50%. US officials said the settlements are the latest in a series of multiissue, multifacility settlements being pursued by EPA under its Petroleum Refinery Initiative. In the past 3 years, several major refiners have entered into global settlements that reflect similarly comprehensive approaches for addressing compliance concerns across the industry.

The latest consent decrees, together with those covering units of Koch Industries Inc., BP PLC, Motiva Enterprises LLC, Royal Dutch/Shell Group, Marathon Ashland Petroleum LLC, ConocoPhillips, and Navajo Refining Co., account for 37 refineries and 35% of US refining capacity, EPA said.

After the agreements are filed with individual courts, each settlement will be open to public comment for 30 days.