EPA v. STONE CONTAINER CORP

Case summary

On September 30, 1998, Region III referred to the Department of Justice a case against St. Laurent Paper Products Corporation and Chesapeake Corporation (Defendants) for violations of the Clean Air Act and Virginia's plan for implementing federal clean air requirements. The referral described three categories of violations at a kraft pulp mill in West Point, Virginia, formerly operated by Chesapeake and presently owned and operated by St. Laurent. First, the referral alleged that the Mill failed to obtain a Prevention of Significant Deterioration (PSD) permit designed to protect air quality in areas that attain national air standards. Evidence suggests that an expansion of capacity at the Mill between 1991 and 1995 increased emissions of sulfur dioxide (SO2) by amounts that would have required preconstruction permitting under PSD rules, including the application of best available control technology to the Mill to reduce SO2 emissions. While Defendants obtained minor source (non-PSD) permits claiming two sources of emissions reductions designed to offset increased emissions from the expansion of capacity (and thereby avoid PSD requirements), one reduction is not valid under PSD rules and the other was never implemented. Second, the referral alleged that Defendants failed to comply with minor source permit conditions that (1) required the re-routing of gases to a control device prior to achieving a specified production level and (2) set emissions limits for total reduced sulfur from a unit at the Mill. Third, the referral alleged that Defendants violated new source performance standards limiting emissions of total reduced sulfur from several units at the Mill. The referral requests injunctive relief at the Mill, including the application of best available control technology to reduce SO2 emissions from two power boilers. Due largely to the substantial estimated economic benefit from the delays in installing this pollution control technology, the referral seeks a penalty for past violations of $16.5 million. SECTION INITIATIVE = OTHER (PULP PAPER NSR).

Defendants (1)

• STONE CONTAINER CORPNamed in complaintNamed in settlement

Facilities (3)

• ST LAURENT PAPER CORPORATION - WEST POINT MILL

  19TH & MAIN STS, WEST POINT, VA, 23181

  Registry ID: 110007317484

• ST LAURENT PAPER CORPORATION - WEST POINT MILL

  19TH & MAIN STS, WEST POINT, VA, 23181

  Registry ID: 110007317484

• ST LAURENT PAPER CORPORATION - WEST POINT MILL

  19TH & MAIN STS, WEST POINT, VA, 23181

  Registry ID: 110007317484

Statutes cited

• CAA 165 — Prevention of Significant Deterioration (PSD)
• CAA 111 — New Source Performance Standards
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• STONE CONTAINER CORPentered 2004-11-04

  Primary law: CAA

  Federal penalty: $475,000 · State/local: $475,000

Timeline (7 milestones)

• 1998-09-30Referred To Dept Of Justice
• 1998-10-07Enforcement Action Data Entered
• 2004-09-09Final Order Lodged
• 2004-09-09Complaint Filed With Court
• 2004-11-04Final Order Entered
• 2004-11-14Enforcement Action Closed
• 2008-06-11Send Demand Letter