EPA v. Caribbean Petroleum Refining, LP et al.

Case summary

On August 18, 2010, the Debtors filed a Chapter 11 Bankruptcy voluntary petition in the U.S. Bankruptcy Court for the District of Delaware. In addition, the Debtors are requesting to sell all their assets, including the CPR facility. The Court has already approved the sale and bidding procedures. EPA is requesting DOJ to represent EPA in the Bankruptcy action to seek reimbursement of costs incurred and to be incurred by the agency in performing CERCLA response actions with respect to the CPR facility. In addition, EPA is requesting that DOJ make filings in the bankruptcy action related to the CWA UAO and the 1995 RCRA AOC. On June 2 and 3, the U.S. Bankruptcy Court for the District of Delaware signed orders approving a bankruptcy settlement with the Unites States and three debtors. The primary settlement agreement document, made effective by the 6/3 court order, calls for a payment to the United States (paid June 6), which includes monies to reimburse EPA and U.S. Coast Guard past response costs at the Bayamon oil terminal that had been the location of a catastrophic 2009 explosion and fire, and EPA CWA and RCRA UST penalties. On August 18, 2010, the Debtor Caribbean Petroleum Corp filed a Chapter 11 Bankruptcy voluntary petition in the U.S. Bankruptcy Court for the District of Delaware. The Colon-Cabrera matter arose after the Liquidation Trust administering the remaining assets of the debtor tried to transfer certain underground storage tanks (USTs) to Colon-Cabrera (the owner of the real property where the USTs are located). Because EPA's inspection showed that the USTs were not in compliance and may have potential releases, the government filed a limited objection. After a hearing, the Court ordered the parties to try to reach an agreement. Under the Agreement the new owner of the USTs will receive from the Liquidating Trust and set aside $50,000 in an environmental account to be used for environmental work related to any contamination from the transferred tanks. This work includes, the correction of deficiencies found during the EPA inspection, the performance of environmental investigation, USTs repairs, and if needed, response and corrective action

Defendants (4)

• Caribbean Petroleum Refining, LPNamed in complaintNamed in settlement
• Gulf petroleum Refining (Puerto Rico) CorporationNamed in complaintNamed in settlement
• Caribbean Petroleum CorporationNamed in complaintNamed in settlement
• Manuel Colon-CabreraNamed in settlement

Facilities (46)

• CARIBBEAN PETROLEUM REFINERY L.P.

  STATE RD #28, LUCHETTI INDUSTRIES PARK, BAYAMON, PR, 00961

  Registry ID: 110008471956

• GULF #___

  CALLE CORCHADO 1262, SANTURCE, PR, 00907

  Registry ID: 110043723325

• GULF #395

  CARR # 20 KM 9.2 LA MUDA, GUAYNABO, PR, 00920

  Registry ID: 110056154780

• GULF #430

  CARR. 14, KM 46.4 ASOMANTO, AIBONITO, PR, 00705

  Registry ID: 110045459240

• GULF #468

  CARR. 14, KM 3.5, PONCE, PR, 00780

  Registry ID: 110056161718

• GULF #317

  RD 111, KM 13.4 HATO ARRIBA, SAN SEBASTIAN, PR, 00603

  Registry ID: 110056152041

• CARIBBEAN PETROLEUM REFINERY L.P.

  STATE RD #28, LUCHETTI INDUSTRIES PARK, BAYAMON, PR, 00961

  Registry ID: 110008471956

• GULF #425

  AVE. 65 INF., KM 5.1, CAMPO RICO, RIO PIEDRAS, PR, 00924

  Registry ID: 110056161120

• GULF #905

  AVE/ LUIS MUNOZ SOUFFRONT, LOS MAESTROS, RIO PIEDRAS, PR, 00923

  Registry ID: 110045459204

• GULF #463

  CALLE 4 ESQ. 5, SHOP. VILLA NUEVA, CAGUAS, PR, 00727

  Registry ID: 110043720872

• GULF #404

  AVE MUNOZ RIVERA # 265, FAJARDO, PR, 00738

  Registry ID: 110063598851

• GULF #316

  CARR # 31 KM 14.8, LAS PIEDRAS, PR, 0771

  Registry ID: 110045453479

• GULF #429

  CARR 172, KM 13.7, CIDRA, PR, 00739

  Registry ID: 110056150294

• GULF #805

  PLAYA SARDINAS # 2, CULEBRA, PR, 00775

  Registry ID: 110056145611

• TO GO VEGA ALTA (FORMER GULF #326)

  CARR 2, KM 29.1, BO ESPINOSA, VEGA ALTA, PR, 00966

  Registry ID: 110063865410

• …and 31 more

Statutes cited

• RCRA 9003 — UST Release Detection, Prevention, Correction Regulations
• CWA 311B — Oil & Hazardous Substances Discharge
• CERCLA 107A — Cost Recovery

Enforcement conclusions (2)

• Caribbean Petroleum Refining, LP et al.entered 2011-06-03

  Primary law: CERCLA

  Federal penalty: $1,500,000

• Caribbean Petroleum Refining, LP et al.entered 2015-07-30

  Primary law: CERCLA

Timeline (5 milestones)

• 2010-09-30Referred To Dept Of Justice
• 2010-10-06Enforcement Action Data Entered
• 2011-02-04Complaint Filed With Court
• 2015-01-23Final Order Lodged
• 2015-07-30Final Order Entered