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CHARGES SETTLED
Refiners agree to limit air emissions in return for new operating permits
JEFF JOHNSON
The operators of seven oil refineries have reached a legal settlement with the federal government that requires them to install some $130 million in air pollution control equipment and pay more than $2 million in penalties and $6 million for beneficial community programs.
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UPGRADES ORDERED Conoco will be installing innovative emissions control technologies at one of its refineries in Lake Charles, La.
CONOCO PHOTO |
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As a result, annual emissions of some 10,000 tons of nitrogen oxides, sulfur dioxide, volatile organic compounds, and particulates will be eliminated, say EPA and the Department of Justice.
Four of the settling refineries are owned by Conoco and three by Holly Corp. The refineries make up about 3.5% of U.S. capacity. Conoco will pay the lion's share: $110 million for pollution control equipment, a $1.5 million civil penalty, and $5 million on environmental projects.
The agreement comes through Clean Air Act "new source review" (NSR) provisions, a controversial portion of the act that requires companies to install modern pollution control equipment when making process modifications that increase emissions.
The Bush Administration has been reviewing NSR provisions since early last summer, and environmental groups tell C&EN they expect the Administration will roll back these provisions.
EPA officials say, however, that this settlement is a signal of the government's willingness to use the provisions. They point out the settlement is among several successfully negotiated with refineries. Electric utilities, on the other hand, are fighting the NSR provisions with gusto.
Holly President Matthew P. Clifton says the settlement allows the refiner to "get beyond the past" and obtain permits for a series of expansions.
A spokesman with Conoco says the agreement negotiations were "quick, efficient, and effective and a good process to resolve differences," allowing Conoco to "avoid distraction and focus on business."
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