EPA v. LSB CHEMICAL LLC

Case summary

MAY 28, 2025 - CONSENT AGREEMENT On May 3, 2023, the EPA issued to Respondent a Notice of Potential Violation and Opportunity to Confer ( NOPVOC ), providing notice that the EPA found that Respondent potentially committed the alleged violations described in Section V of this Agreement and providing Respondent an opportunity to confer with the EPA. On September 19, 2023, and January 17, 2024, representatives of Respondent and the EPA held meetings to discuss the NOPVOC. On August 30 through September 1, 2022, the EPA conducted an on-site inspection of the RMProgram related records and equipment for the purpose of assessing the Respondent's compliance with the RMProgram requirements and the implemented recognized and generally accepted good engineering practices (RAGAGEP) for its covered process at its Facility. At the time of the inspection, EPA observed the following: a. The equipment in the field did not match the piping & instrument diagrams (P&IDs). b. The anhydrous ammonia piping in the C-Grade storage area was not labeled to indicate contents, direction of flow, physical state (i.e., liquid or vapor), or pressure level (i.e., high or low). Section 3.1 of American Society of Mechanical Engineers (ASME) A13.1 (2015) states, Positive identification of the contents of a piping system shall be by lettered legend, giving the name of the contents in full or abbreviated form ... Arrows shall be used to indicate direction of flow. Where flow can be in both directions, arrows in both directions shall be displayed. Contents shall be identified by a legend with sufficient additional details such as temperature, pressure, etc., as are necessary to identify the hazard. c. The Facility's process hazard analysis (PHA) did not address hazards relating to loss of power or extreme weather events. On July l, 2020, the Facility experienced a power outage due to a severe thunderstorm, which resulted in a release due to the shutdown of certain equipment. Because of the severe nature of the thunderstorm and the location of the controls for the emergency scrubber (which were only accessible from certain external locations during a loss of power), Facility personnel were delayed for approximately one hour in starting the scrubber. Severe weather and loss of power are hazards of the process within the meaning of the RMP regulations, see 40 C.F.R. ? 68.3, that should have been addressed in the PHA. d. Action item #101057 from the 2014 Letdown Area PHA stated, Consider automating compressor monitoring on DCS. This action item had a deadline of July 1, 2022, and was still listed with open status at the time of the inspection. e. The Facility did not revise its operating procedures to include required revisions until May 8, 2020, which was more than one year after incidents occurred. f. The 2022 Compliance Audit identified two of the safeguards for the ammonia PHA that were not included in the Facility's inspection program. Specifically, the inspection team reviewed the Facility's inspection tracking system records and confirmed that the following safeguards for pressure vessels and storage tanks and controls (including monitoring devices and sensors, alarms, and interlocks) were not included in the Facility's inspection program. Respondent agrees to pay a civil penalty in the amount of $40,524.00 ( Assessed Penalty ) within thirty (30) calendar days after the Effective Date of this CAFO.

Defendants (1)

• LSB CHEMICAL LLCNamed in complaintNamed in settlement

Facilities (1)

• CHEROKEE NITROGEN

  1080 INDUSTRIAL DR, CHEROKEE, AL, 35616

  Registry ID: 110000589373

Statutes cited

• CAA 112[R][7] — Prevention of Accidental Release/Risk Management Plans (RMPs)

Enforcement conclusions (1)

• LSB CHEMICAL LLCentered 2025-05-28

  Primary law: CAA

  Federal penalty: $40,524 · SEP: $157,737

Timeline (3 milestones)

• 2025-05-28Final Order Issued
• 2025-05-28Complaint Filed/Proposed Order
• 2025-06-05Enforcement Action Data Entered