EPA v. SHELL CHEMICAL, LP (NATIONAL CASE)

Case summary

9/23/05 - SHELL CHEMICAL LP OPERATES A PETROLEUM REFINERY IN SARALAND, AL. FACILITY WAS INSPECTED BY R4 IN MAY 2003. SHELL CHEMICAL WAS INVITED TO PARTICIPATE IN THE PETROLEUM REFINERY INITIATIVE BUT TO DATE HAS NOT EXPRESSED ANY INTEREST. THE VIOLATIONS DESCRIBED IN THIS REFERRAL WERE IDENTIFIED DURING A CAA COMPLIANCE INVESTIGATION CONDUCTED ON MAY 19-22, 2003, BY EPA REGION 4, WITH ASSISTANCE FROM THE NATIONAL ENFORCEMENT INVESTIGATIONS CENTER (NEIC). SHELL PURCHASED THE REFINERY IN AUGUST 1996 FROM LOUISIANA LAND & EXPLORATION COMPANY. THE REFINERY HAS THE CRUDE CAPACITY OF 100,000 BARRELS PER DAY. THE MAIN PRODUCTS MANUFACTURED BY SHELL INCLUDE HEAVY OLEFIN FEE, GASOLENE, KEROSENE (JET FUEL), DIESEL AND OIL BLEND STOCK. THE SHELL FACILITY IS LOCATED IN AN ENVIRONMENTAL JUSTICE AREA. BASED ON EPA'S INVESTIGATION OF THE SHELL REFINERY, EPA HAS DETERMINED THAT SHELL VIOLATED SECTIONS 111 AND 112 OF THE CAA. THE ACTION WOULD SEEK RELIEF IN THE FORM OF CIVIL PENALTIES FOR CAA VIOLATIONS AND INJUNCTIVE RELIEF. SETTLEMENT INFO: SHELL CHEMICAL LP HAS AGREED TO INSTALL POLLUTION REDUCTION EQUIPMENT ON TWO PETROLEUM REFINING FACILITIES AT AN ESTIMATED COST OF $6 MILLION AS PART OF TWO COMPREHENSIVE CAA SETTLEMENTS. The two companies will also pay a combined $3.3 million civil penalty to the United States as well as Alabama and Louisiana and $200,000 to Louisiana organizations for environmental education and emergency operations. Under the settlements, Shell Chemical L.P. will apply new air pollution control technologies and implement other measures to reduce emissions from some of the largest emitting units at its petroleum refining facilities in Saraland, Ala. and St. Rose, La. In addition, the two refineries in Alabama and Louisiana, and the terminal operations in Puerto Rico will upgrade their leak -detection and repair practices to reduce harmful emissions from pumps and valves, implement programs to minimize the number and severity of flaring events and adopt new strategies for ensuring continued compliance with benzene waste requirements under the Clean Air Act. Together, both settlements will reduce air emissions of sulfur dioxide (SO2), nitrogen oxides (NOx) and other harmful pollutants by more than 1,450 tons per year. The settlements are the twenty-fifth and twenty-sixth in a series of �global� multi-issue, multi-facility settlements being pursued by EPA under its National Petroleum Refinery Initiative. With today�s settlements, 102 refineries operating in 30 states and territories are now covered by global settlements, representing more than 89 percent of the nation�s refining capacity.

Defendants (1)

• SHELL CHEMICAL, LPNamed in complaintNamed in settlement

Facilities (4)

• VERTEX REFINING ALABAMA LLC

  400 INDUSTRIAL PARKWAY EXTENSION EAST, SARALAND, AL, 36571

  Registry ID: 110012509071

• VERTEX REFINING ALABAMA LLC

  400 INDUSTRIAL PARKWAY EXTENSION EAST, SARALAND, AL, 36571

  Registry ID: 110012509071

• VERTEX REFINING ALABAMA LLC

  400 INDUSTRIAL PARKWAY EXTENSION EAST, SARALAND, AL, 36571

  Registry ID: 110012509071

• VERTEX REFINING ALABAMA LLC

  400 INDUSTRIAL PARKWAY EXTENSION EAST, SARALAND, AL, 36571

  Registry ID: 110012509071

Statutes cited

• CAA 112 — Hazardous Air Pollutants
• CAA 111 — New Source Performance Standards

Enforcement conclusions (1)

• SHELL CHEMICAL, LP (NATIONAL CASE) (04-2011-C001)entered 2010-10-28

  Primary law: CAA

  Federal penalty: $609,900 · State/local: $622,000

Timeline (6 milestones)

• 2005-09-23Referred To Dept Of Justice
• 2005-09-29Enforcement Action Data Entered
• 2010-03-31Final Order Lodged
• 2010-03-31Complaint Filed With Court
• 2010-10-28Concluded
• 2010-10-28Final Order Entered