BP Products North America Inc. agreed to spend more than $161 million on pollution controls, and enhanced maintenance and monitoring to resolve Clean Air Act violations at its Texas City, Tex., refinery.
The US Department of Justice and the US Environmental Protection Agency announced a proposed settlement Feb. 20 in which BP also would pay a $12 million civil penalty and spend $6 million on a supplemental project to reduce air pollution in Texas City.
EPA identified the violations during a series of inspections of the Texas City refinery initiated after a Mar. 23, 2005, explosion and fire killed 15 people and injured more than 170 others at the 446,500 b/cd refinery.
Since then, BP has increased its health, safety, and environment staff, expanded safety and operations training, and spent more than $1 billion over 5 years to rebuild key gasoline production units, update control systems, and implement other recommendations.
The proposed settlement is subject to a 30-day public comment period and final court approval. The settlement announced by the DOJ and EPA does not address any claims arising from the March 2005 explosion.
“BP failed to fulfill its obligations under the law, putting air quality and public health at risk,” said Catherine R. McCabe, acting assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will benefit the people living in and around Texas City, many of whom come from minority and low-income backgrounds.”
Background
The settlement addresses the company’s noncompliance with a 2001 consent decree and CAA regulations requiring strict controls on benzene and benzene-containing wastes generated during petroleum refining operations.
“Since 1993, BP has invested well over $100 million on benzene emissions controls for Texas City refinery wastewater streams,” said Daren Beaudo, a BP spokesman in Houston.
Beaudo said the government’s announcement “builds upon our actions taken over the last several years to control benzene in waste streams,” adding, “We are pleased to have achieved this settlement and will work to continue reducing emissions and to ensure regulatory compliance at Texas City.”
The proposed settlement would require BP to upgrade control equipment and processes and conduct in-depth audits to ensure compliance and minimize the amount of benzene-containing wastes generated at the refinery. It is estimated that these actions will reduce emissions of benzene and other volatile organic compounds by 6,000 lb/year.
In October 2007, BP pleaded guilty to a felony violation of the CAA and agreed to pay a $50 million fine for violations related to the explosion, the largest criminal fine ever assessed against a corporation for CAA violations.
The plea remains under review by the US District Court for the Southern District of Texas (OGJ, Sept. 8, 2008, p. 20).
The settlement requires that BP address violations of CAA requirements limiting emissions of stratospheric ozone-depleting hydrochlorofluorocarbons (HCFCs) from leaking cooling appliances. BP will eliminate 51,000 lb of HCFCs by retrofitting industrial and commercial cooling appliances at Texas City to use nonozone-depleting refrigerants. The company also agreed to improve its oversight and management of asbestos-containing wastes generated at the Texas City refinery.
In addition, BP will spend $6 million to reduce air pollution from diesel vehicle emissions in Texas City and the surrounding area. BP agreed to convert 100 diesel municipal vehicles, including several dozen school buses, to operate on CNG or LNG and will construct four refueling stations for the converted vehicles.
As a result, emissions of particulate matter, nitrogen oxides, and hydrocarbons from these vehicles will be substantially reduced.
