EPA v. LSB INDUSTRIES, INC/EL DORADO CHEMICAL CO/PRYOR CHEMICAL CO/CHEROKEE NITROGEN CO. (NATIONAL CASE)

Case summary

3/18/14 - LSB INDUSTRIES, INC., THE LARGEST MERCHANGE MANUFACTURER OF CONCENTRATED NITRIC ACID IN NORTH AMERICA, AND 4 OF ITS SUBIDIARIES HAVE AGREED TO REDUCE HARMFUL EMISSIONS OF NITROGEN OXIDES (NOx) BY MEETING EMISSION LIMITS THAT ARE AMONG THE LOWEST FOR THE INDUSTRY IN THE NATION AT PLANTS IN ALABAMA, ARKANSAS, OKLAHOMA, AND TEXAS. HIGH CONCENTRATIONS OF NOx IN THE AIR CAN IRRITATE THE LUNGS AND LOWER RESISTANCE TO RESPIRATORY INFECTIONS SUCH AS INFLUENZA. CONTINUED OR FREQUENT EXPOSURE MAY CAUSE INCREASED INCIDENCE OF ACUTE RESPIRATORY ILLNESS IN CHILDREN. FURTHER, AIRBORNE NOx CAN SIGIFICANTLY CONTRIBUTE TO ACID RAIN AND LEAD TO THE FORMATION OF SMOG. EPA ESTIMATE THAT THE MEASURES REQUIRED BY TODAY'S SETTLEMENT WILL REDUCE NOx EMISSIONS BY MORE THAN 800 TONS PER YR, DIRECTLY BENEFITTING SURROUNDING COMMUNITIES, WHICH INCLUDE LOW INCOME AND MINORITY POPULATIONS LIVING NEAR THE ARKANSAS AND TEXAS PLANTS. THE COMPANIES ESTIMATE THAT IT WILL COST BETWEEN 6.3 AND 11.7 MILLION TO IMPLEMENT THE MEASURES REQUIRED BY THE SETTLEMENT. LSB AND ITS 4 NITRIC ACID PRODUCING SUBSIDIARIES WILL ALSO PAY A TOTAL PENALTY OF $725,000 TO RESOLVE ALLEGED VIOLATIONS OF THE CAA AND APPLICABLE OKLAHOMA STATE LAW. IN ADDITION TO PAYING THE PENALTY, THE COMPANIES MUCH CONTINUOUSLY MONITOR EMISSIONS AND MAKE ANY NECESSARY OPERATIONAL IMPROVEMENTS SUCH AS INSTALLING NEW POLLUTION CONTROLS OR UPGRADING CURRENT CONTROLS TO MEET THE NEW NOx LIMITS. TODAY'S SETTLEMENT APPLIES TO THE TEN NITRIC ACID MANUFACTURING PLANTS OWNED OR OPERATED BY THE FOLLOWING OKLAHOMA CITY-BASED LSB SUBSIDIARIES: EL DORADO CHEMICAL CO., IN EL DORADO, ARKANSAS (4 PLANTS); CHEROKEE NITROGEN CO., IN CHEROKEE, ALABAMA (2 PLANTS); EL DORADO NITROGEN CO., IN PRYOR OKLAHOMA (3 PLANTS); AND EL DORADO NITROGEN CO., IN BAYTOWN TX (1 PLANT). THE COMPLAINT, FILED CONCURRENTLY WITH THE SETTLEMENT, ALLEGES THAT THE CHEROKEE, EL DORADO AND PRYOR SUBSIDIARIES CONSTRUCTED OR MADE MODIFICATIONS TO THEIR PLANTS THAT RESULTED IN INCREASED EMISSIONS OF NOx WIHTOUT FIRST OBTAINING PRE-CONSTRUCTION PERMITS AND INSTALLING POLLUTION CONTROLS. THE COMPLAINT DOES NOT ALLEGE ANY VIOLATIONS REGARDING THE TX FACILITY. THE COMPANIES HAVE ALSO AGREED TO SPEND $150,000 TO REMEDIATE AND REFOREST TEN ACRES OF LAND WITH ACIDIFIED SOILS LOCATED NEAR EL DORADO, ARKANSAS. NOx EMISSIONS, SUCH AS THOSE FROM NITRIC ACID PLANTS, CON CONTRIBUTE TO SOIL ACIDIFICATION. THE PROJECT WILL HELP TO MINIMIZE EROSION, REDUCE STORMWATER RUNOFF, IMPROVE HABITAT FOR WILDLIFE AND CAPTURE CARBON DIOXIDE, A GREENHOUSE GAS. THE STATES OF OKLAHOMA AND ALABAMA ARE CO-PLAINTIFFS IN TODAY'S SETTLEMENT AND WILL RECEIVE A PORTION OF THE TOTAL PENALTY AS FOLLOWS: $206,250 WILL BE PAID TO THE OK DEPT OF ENVIRONMENTAL QUALITY AND $156,250 WILL BE PAID TO THE AL DEPT OF ENVIRONMENTAL MGMT. LSB, HEADQUARTERED IN OK CITY, OK, IS A MAJOR PRODUCER OF NITROGEN-BASED FERTILIZERS, INCLUDING ANHYDROUS AMMONIA, UREA AND AMMONIA NITRATE. THE COMPANY OWNS AND OPERATES THE LARGEST FLEET OF CONCENTRATED NITRIC ACID RAIL CARS IN THE U.S. LSB AND ITS SUBSIDIARIES PRODUCE NITRIC ACID FOR USE IN PRODUCTS THAT INCLUDE HERBICIDES, METAL TREATMENT, EXPLOSIVES AND PHARMECEUTICALS.

Defendants (3)

• CHEROKEE NITROGEN COMPANYNamed in complaintNamed in settlement
• PRYOR CHEMICAL COMPANYNamed in complaintNamed in settlement
• EL DORADO CHEMICAL COMPANYNamed in complaintNamed in settlement

Facilities (2)

• CHEROKEE NITROGEN

  1080 INDUSTRIAL DRIVE, CHEROKEE, AL, 35616

  Registry ID: 110000589373

• CHEROKEE NITROGEN LLC

  1080 INDUSTRIAL DRIVE, CHEROKEE, AL, 35616

  Registry ID: 110000589373

Statutes cited

• CAA 502 — Operating Permits (Title V)
• CAA 165 — Prevention of Significant Deterioration (PSD)

Enforcement conclusions (1)

• LSB INDUSTRIES, INC/EL DORADO CHEMICAL CO/PRYOR CHEMICAL CO/CHEROKEE NITROGEN CO. (NATIONAL CASE)entered 2014-05-28

  Primary law: CAA

  Federal penalty: $90,625 · State/local: $156,250

Timeline (8 milestones)

• 2012-08-29Referred To Dept Of Justice
• 2012-09-05Enforcement Action Data Entered
• 2014-03-18Final Order Lodged
• 2014-03-18Complaint Filed With Court
• 2014-05-28Concluded
• 2014-05-28Final Order Entered
• 2018-03-09Enforcement Action Closed
• 2018-03-09Air Resolved