Murphy Oil to pay $5.5 million to settle environmental violations allegations

Jan. 24, 2002
US law enforcement officials Thursday announced a proposed $5.5 million settlement with Murphy Oil USA Inc. for alleged clean air and water violations at the sulfur recovery unit in its 33,250 b/d Superior, Wis., refinery.

By the OGJ Online Staff

WASHINGTON, DC, Jan. 24 -- US law enforcement officials Thursday announced a proposed $5.5 million settlement with Murphy Oil USA Inc. for alleged clean air and water violations at the sulfur recovery unit in its 33,250 b/d Superior, Wis., refinery.

The civil penalty was the largest ever leveled in Wisconsin for an environmental enforcement case, US officials said.

Murphy will also spend $7.5 million in pollution control equipment over a 5-year period for the refinery's other processing units.

The proposed agreement is subject to a 30-day public comment period and final court approval.

The settlement comes after a 10-day trial last year. Chief US District Judge Barbara B. Crabb ruled Murphy Oil violated the Clean Air Act when it made major modifications at its refinery without obtaining the required Prevention of Significant Deterioration (PSD) permits, part of the US Environmental Protection Agency's New Source Review program.

She ruled that, when Murphy Oil obtained a PSD permit exemption from the Wisconsin Department of Natural Resources, it had "withheld information knowingly and intentionally and that if it had submitted the withheld materials, they would have been material to the [WDNR's] decision-making process."

US officials said the consent decree only resolves Clean Air Act New Source Review violations at the sulfur recovery unit. It does not preclude the US Environmental Protection Agency or the State of Wisconsin from investigating and bringing enforcement actions for NSR violations at other units at the refinery.

Refiners want the US EPA to change the NSR program. They argue the law is outdated and discourages companies to expand capacity. Environmental groups say EPA needs NSR because without it refiners will have no financial incentive to upgrade aging plants in a way that is more environmentally friendly.