A $25 million settlement has been reached with subsidiaries of Tesoro Corp. and Par Hawaii Refining to resolve Clean Air Act violations at refineries in six states, including one in Kenai, Alaska, federal officials said July 18.
Violations at Tesoro’s Kenai facility included burning of gases generated during the refinement process beyond what is allowed by regulation, and failure to perform required checks for leaks, said John Keenan, a Clean Air Act enforcement specialist with U.S. Environmental Protection Agency in Seattle.
These violations had been going on for a number of years, even though the refineries are required to keep records and make reports to the EPA and Alaska Department of Environmental Conservation, Keenan said.
Under the 170 page decision handed down by the U.S. District Court for West Texas, Tesoro will have to have new equipment for its flare system at Kenai up and running by Oct. 1, to recover gases previously flared and allow the refinery to use them as fuel within the refinery.
The agreement also put a number of other dates in place for making changes in the flare operation and for changes in the company’s leak detection system.
“They will be looking for leaks more frequently and they will be required to fix leaks that are much smaller,” Keenan said. “We will be back on multiple occasions at Kenai. We had an inspector out there last month,” he said.
Under the settlement, Tesoro Corp. and Par Hawaii Refining will spend about $403 million to install and operate pollution control equipment, and Tesoro will spend about $12 million to fund environmental projects in local communities, including Kenai, Alaska, that were previously impacted by pollution.
The settlement will benefit the air quality in communities across the western U.S., said Assistant Attorney General John C. Cruden, of the Justice Department’s Environment and Natural Resources Division. It calls for use of cutting edge technology to address global environmental issues like climate change by controlling flaring and provides important reductions of harmful air pollution in communities facing environmental and health challenges, Cruden said.
In addition to installing pollution control equipment, the settlement requires Tesoro to use a series of state-of-the-art Next Generation Compliance tools to monitor pollution.
Leaks, flares and excess emissions from refineries emit hazardous air pollutants, or air toxics that are known or suspected to cause cancer, birth defects, and seriously impact the environment. Sulfur dioxide and nitrogen oxides have numerous adverse effects on human health and are significant contributors to acid rain, smog and haze. Refineries also emit greenhouse gases that contribute to climate change, as well as fugitive volatile organic compounds, the EPA said.
Tesoro will also pay a $10.45 million civil penalty, said officials with the U.S. Environmental Protection Agency and Department of Justice.
Officials with Cook Inlet Regional Citizens Advisory Council said the council was not involved in these complaints against Tesoro Alaska’s petroleum refinery.
“CIRCAC’s activities are driven by our congressional mandate under the Oil Pollution Act of 1990,” said Lynda Giguere, director of public outreach for CIRCAC.
“These responsibilities are focused on crude oil, including Cook Inlet crude oil terminals, offshore facilities, and tankers operating in the Inlet. Our strategic plan and activities are guided by OPA 90 and our OPA 90-mandated funding has been directed towards improving oil spill prevention and response and monitoring Cook Inlet’s marine environment.”
The settlement, a consent decree lodged in U.S. District Court for the Western District of Texas, includes provisions to resolve ongoing Clean Air Act violations at refineries in Kenai, Martinez, CA; Kapolei, HI; Mandan, N.D.; Salt Lake City, UT, and Anacortes, WA.
OF the $10.45 million civil penalty to be paid by Tesoro, the federal government will receive $8,050,000, and co-plaintiffs, including the states of Alaska and Hawaii, and Northwest Clean Air Agency, will share $2.4 million.
