Premcor settles new source review case involving Illinois refinery

Premcor Refining Group Inc., St. Louis, Mo., Thursday announced a settlement resolving alleged permit violations at its 70,000-b/d Hartford, Ill. refinery. A government lawsuit alleged it failed to obtain a New Source Review permit for modifications made to its fluid catalytic converter in 1994.

Jul 12th, 2001


By the OGJ Online Staff

HOUSTON, July 12 -- Premcor Refining Group Inc., St. Louis, Mo., Thursday said it has settled with the US Environmental Protection Agency and the state of Illinois to resolve alleged violations at its 70,000-b/d Hartford, Ill. refinery.

The lawsuit alleged the refinery failed to obtain a New Source Review permit for modifications made to its fluid catalytic converter unit in 1994.

While not admitting that a permit was required, Premcor will pay a $2 million fine, apply for a permit, and complete installation of additional pollution-control equipment by 2003, according to the settlement.

Premcor said the significant emission-reduction improvements will be realized well in advance of Hartford's existing Tier 2 low-sulfur gasoline federal compliance deadlines.

The emission-reduction improvements include the installation of a wet-gas scrubber and low nitrogen oxide burners on selected heaters and boilers at a cost of $8 million-$10 million.

William Rusnack, president and CEO, said, "Premcor continues to be committed to safe and environmentally responsible operations at all of our refineries."

Premcor is the sixth largest US independent oil refiner. It also operates a 250,000-b/d refinery at Port Arthur, Tex., and a 170,000-b/d plant at Lima, Ohio. Premcor's principal shareholders are affiliates of the Blackstone Group, which has a 79% interest, and Occidental Petroleum Corp., which has 18%.

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