EPA v. LIMA REFINING

Case summary

In a settlement with the United States, Lima Refining Company (LRC), a Husky Energy Inc. subsidiary, has agreed to undertake significant injunctive relief to reduce harmful air pollution from the company's refinery located in Lima, Ohio, the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that the company violated its 2007 Consent Decree with the U.S. Environmental Protection Agency and the State of Ohio, among other parties (Civil Action SA-05-CA-0569-RF) and the Clean Air Act by failing to operate the facility in compliance with the National Emission Standards for Hazardous Air Pollutants from Petroleum Refineries at 40 C.F.R. Part 63, Subparts CC and A, its Title V permit, its Permit-to Install, and the Ohio State Implementation Plan. EPA expects that the actions required by the settlement will result in the following annual emission reductions: 98 tons per year (TPY) of sulfur dioxide (SO2), 28 TPY of volatile organic compounds (VOC), 69 TPY of nitric oxide (NOx), and 28 TPY of particulate matter (PM). Additionally, LRC will spend $10,000,000 in mitigation to further reduce SO2 emissions that result from acid gas flaring during startup, shutdown, and process upsets. The company estimates that it will spend over $150,000,000 to implement the required measures. LRC will also perform a supplemental environmental project in the amount of $1,750,000 for lead-based paint abatement, prioritizing abatement in owner-occupied low income residences with children or pregnant women near the Lima Refinery. The settlement requires the company to pay a civil and stipulated penalty of $1,000,000 to resolve Clean Air Act violations. Of that amount, $146,509 will be paid as a stipulated penalty to the State of Ohio for violations of the 2007 CD. The settlement requires LRC to undertake the following injunctive relief: development and implementation of an enhanced leak detection and repair (LDAR) program, development and implementation of operation and maintenance (O&M) plans to improve continuous emission monitoring systems, installation of a third sulfur recovery unit and a second tail gas treatment unit, implementation of a turndown engineering project at the sulfur recovery plants, installation of selective catalytic reduction and an alkaline wet gas scrubber on the FCCU, and flaring minimization and flaring efficiency measures at the three flares at facility located in Lima, Ohio The pollutants reduced in this settlement (SO2, NOx, VOC, and PM) have numerous adverse effects on human health. - SO2: SO2 emissions harm the human respiratory system and make breathing difficult. SO2 emissions lead to the formation of other sulfur oxides that contribute to PM pollution. - NOx and VOC: NOx and VOC emissions cause ground level ozone, which can irritate the human respiratory system and reduce lung function. - PM: PM emissions, especially fine particulates, contain microscopic solids and liquid droplets, which can get deep into the lungs and cause issues with the respiratory system and circulatory system. The settlement was lodged with the U.S. District Court for the Southern District of Indiana and is subject to a 30-day public comment period and final court approval. The consent decree will be available for review at https://www.justice.gov/sites/default/files/pages/attachments/2017/06/29/env_enforcement-2668745-v1-lodged_consent_decree.pdf

Defendants (1)

• LIMA REFININGNamed in complaintNamed in settlement

Facilities (1)

• LIMA REFINING COMPANY

  1150 SOUTH METCALF STREET, LIMA, OH, 45804

  Registry ID: 110000395475

Statutes cited

• CAA 502 — Operating Permits (Title V)
• CAA 112D — MACT Standards
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 111 — New Source Performance Standards

Enforcement conclusions (2)

• LIMA REFINING

  Primary law: CAA

• LIMA REFINING - CONSENT DECREEentered 2017-11-07

  Primary law: CAA

  Federal penalty: $706,982 · State/local: $146,509 · SEP: $1,750,000

Timeline (6 milestones)

• 2013-09-27Referred To Dept Of Justice
• 2014-04-15Supplemental Referral-Adding parties, counts
• 2017-06-22Complaint Filed With Court
• 2017-11-07Final Order Entered
• 2017-11-21Enforcement Action Data Entered
• 2021-10-18Final Order Lodged