EPA v. FERRELLGAS, L.P DBA BLUE RHINO

Case summary

EPA and the U.S. Department of Justice reached a settlement agreement with Ferrellgas, Inc., doing business as Blue Rhino (Blue Rhino), to resolve violations of its duty under the Clean Air Act (CAA) to prevent and mitigate the consequences of chemical accidents at Blue Rhino?s propane cylinder refurbishing and distribution plant in Tavares, Florida. Under the proposed agreement, Blue Rhino has agreed to pay a $400,000 civil penalty. Blue Rhino operates several facilities throughout the United States that refurbish and refill 20-pound liquid propane cylinders for distribution to retail locations. The facility in Tavares has an approximately four acre asphalt storage yard where full and empty propane cylinders are stored. On July 29, 2013, workers at the facility improperly vented several cylinders to the atmosphere, causing propane to collect in the yard. As the propane cylinders were venting, a spark from a forklift ignited the vented propane gas resulting in a fire that caused the pressure relief valves in other cylinders to release propane, leading to a chain reaction and a large series of explosions. The fire and explosions injured workers and caused approximately $3.5 million of property damage, including minor damage to six nearby businesses and one residence. Blue Rhino shut down the facility for five months to investigate and to take corrective action. EPA investigated the fire and explosions, and as a result of the investigation, EPA alleged that Blue Rhino violated section 112(r)(1) of the CAA by failing to identify hazards that may result from accidental releases of propane gas using appropriate hazard assessment techniques. Further, EPA alleged that Blue Rhino failed to design and maintain a safe facility by taking the necessary steps to prevent the accidental release of propane gas. EPA IS REFERRING THIS MATTER TO THE U.S. DOJ TO INITIATE A CIVIL ACTION AGAINST FERRELLGAS, L.P DBA BLUE RHINO FOR ALLEGED VIOLATIONS OF THE CLEAN AIR ACT GENERAL DUTY CLAUSE (GDC) AT 42 U.S.C. SECTION 7412(r)(1). EPA ALLEGES THAT BLUE RHINO VIOLATED THE GDC AT ITS PROPANE CYLINDER PROCESSING FACILITY IN TAVARES, FLORIDA (FACILITY). THE ALLEGED VIOLATIONS RELATE TO OPERATIONAL AND PLANNNG PRACTICES AT THE FACILITY REGARDING THE ASSESSMENT OF HAZARDS AND THE HANDLING OF PROPANE CYLINDERS. THE EPA SEEKS CIVIL PENALTIES, INJUNCTIVE RELIEF, AND COMPLIANCE WITH THE GDC.

Defendants (1)

• FERRELLGAS, INC.,Named in complaintNamed in settlement

Facilities (1)

• FERRELLGAS - BLUE RHINO - TAVARES

  300 COUNTY ROAD 448, TAVARES, FL, 32778

  Registry ID: 110061188192

Statutes cited

• CAA 112[R][1] — Prevention of Accidental Release/General Duty Clause

Enforcement conclusions (1)

• FERRELLGAS, L.P DBA BLUE RHINOentered 2020-09-22

  Primary law: CAA

  Federal penalty: $400,000

Timeline (6 milestones)

• 2016-09-27Referred To Dept Of Justice
• 2016-09-28Enforcement Action Data Entered
• 2020-09-02Final Order Lodged
• 2020-09-02Complaint Filed With Court
• 2020-09-22Concluded
• 2020-09-22Final Order Entered