U.S. acts against Shell, Clark refineries

U.S. Environmental Protection Agency said Shell Oil Co. has agreed to pay $11.5 million to resolve claims of environmental violations at its Wood River, Ill., refinery.

Meanwhile, the Justice Department has sued Clark Refining & Marketing Inc., St. Louis, for alleged pollution from its Blue Island, Ill., refinery near Chicago.

Atty. Gen. Janet Reno and EPA Administrator Carol Browner disclosed the actions in St. Louis as part of the government's "Mississippi River Initiative" to halt illegal pollution of the river. They said the interagency program has resulted in criminal cases leading to the conviction of 54 persons, more than $10 million in penalties and restitution, and more than 8 years in prison terms. Also, 18 civil suits have been filed seeking more than $18 million in penalties, as well as 93 administrative cases seeking $900,000 in penalties against 104 facilities.

Shell case

EPA said there had been "hundreds of environmental violations" at Shell's 250,000 b/d Wood River refinery on the Mississippi River. Shell and its affiliates agreed to a judicial decree requiring them to comply with all environmental laws, spend $10 million for supplemental environmental projects at the plant, and pay the U.S. government $1 million in civil penalties and Illinois $500,000.

EPA said environmental problems at Wood River included: illegal levels of sulfur dioxide and hydrogen sulfide air emissions; violations of benzene emission standards; violations of solid waste labeling, reporting, and manifesting rules; late reporting of emissions of extremely hazardous substances, such as ammonia and chlorine; and violations of state water regulations.

One of the supplemental projects calls for Shell to buy and give to the state $500,000 worth of land along the river suitable for wetlands preservation, water quality protection, and wildlife conservation. Shell also must reduce emissions of SOx by 7,700 tons/year and nitrogen oxides by 940 tons/year. Shell denied the allegations but said it agreed to the settlement to avoid protracted litigation.

Clark case

Justice alleged Clark's 80,000 b/d Blue Island refinery violated five major environmental laws. It asked a federal court to enjoin Clark from further violations and to assess appropriate civil penalties.

The suit alleged the refinery discharged illegal effluent into the Cal-Sag Channel, which flows into the Mississippi River, and made dozens of illegal discharges to the local wastewater treatment plant. Justice also alleged Blue Island illegally bypassed wastewater treatment equipment and discharged dangerously high levels of pollutants into sewer systems, posing a risk of fire or explosion. And it alleged Blue Island discharged oil or hazardous substances into navigable waters more than 15 times during October 1993-October 1997, including a 1,000- gal spill into an adjoining waterway in 1994.

Clark said it was "disappointed" at Justice's actions, noting that it had discussed the issues with regulators and had spent $40 million to resolve the problems.