EPA v. PHELPS DODGE CORP

Case summary

PHELPS DODGE CORPORATION IS THE LARGEST DOMESTIC PRODUCER OF COPPER. IN 1985 IT PRODUCED ABOUT ONE THIRD OF THE COPPER MINED IN THE U.S. PHELPS IS VERTICALLY INTEGRATED; IT MINES COPPER; SMELTS COPPER; PRODUCES CONTINUOUS CAST COPPER ROD, THE BASIC FEED FOR THE ELECTRICAL WIRE AND CABLE INDUSTRY; AND IS A MAJOR PRODUCER OF MAGNETIC WIRE. IN 1985 PHELPS DODGE REPORTED EARNINGS OF 29.5 MILLION. AS A RESULT PHELPS DODGE'S TOTAL DEBT DECLINED OVER $100 MILLION TO JUST UNDER $500 MILLION. DOUGLAS SMELTER DISCHARGES TWO KINDS OF POLLUTANTS REGU- LATED BY THE CAA AND ARIZONA SIP: PARTICULATE MATTER AND SULFUR DIOXIDE. THE SMELTER OPERATES IN CHRONIC AND GROSS VIOLATION OF THE APPLICABLE ARIZONA SIP EMISSION LIMITATION FOR PARTIC MATTER, & IS LISTED IN CDS AS SIGNIFICANT VIOLA- TOR. RECENT STACK TESTS BY NEIC IN SEPTEMBER, 1985 SHOW THAT THE SMELTERS TWO STACKS EMIT 1018 POUNDS PER HOUR OF PARTICULATE MATTER AS COMPARED TO AN ALLOWABLE LEVEL OF 148 POUNDS PER HOUR. THE SMELTER EMITS SULFUR DIOXIDE AT LEVELS FAR IN EXCESS OF THE ARIZONA SULFUR DIOXIDE SIP EMISSIONS LIMITATIONS. RECENT STATE DATA INDICATES THAT THE SMELTER EMITS 319,884 TONS PER YEAR OF SULFUR DIOXIDE COMPARED TO A COMPLIANCE LIMIT OF 68,657 TONS PER YEAR. THE SULFUR DIOXIDE EMISSIONS LIMITATIONS COMPLIANCE DEADLINE OF JANUARY 14, 1986 HAS BEEN SUSPENDED BY EPA FOR FEDERAL ENFORCEMENT PURPOSES UNTIL 7/9 86 PENDING CONSIDERATION OF THE DOUGLAS SMELTERS SEC 119, NSO APPLIC.. EPA IS CONCERNED WITH ENSURING FINAL COMPLIANCE WITH THE ARIZONA SO2 SIP LIMITATION AND WITH INTE RIM REDUCTION OF SO2 EMISSIONS IN U.S. AND MEXICO IN AC- CORD WITH THE U.S. - MEXICO AGREEMENT. EPA MUST ADDRESS HIGH SHORT-TERM PEAK LEVELS OF S02 IN ORDER TO AVOID AN IMMINENT AND SUBSTANTIAL ENDANGERMENT TO THE PUBLIC HEALTH. PHELPS DODGE HAS STATED THAT IT WILL NOT INSTALL ADDITION- AL CONTINUOUS POLLUTION CONTROL EQUIPMENT TO CONTROL PARTICULATE MATTER OR SO2. PHELPS DODGE ARGUES THAT IT CANNOT FURTHER CONTROL PARTICULATE MATTER ON A CONSTANT BASIS WITHOUT INSTALLING A SULFURIC ACID PLANT TO CONTROL SO2. PHELPS DODGE OPERATES HOT ELECTROSTATIC PRECIPITATORS WHICH CONTROL SOME 'HARD' PARTICULATE MATTER EMISSIONS, AND AN INTERMITTENT CONTROL SYSTEM TO PREVENT EXCEEDANCES OF THE SO2 NAAQS. FINAL COMPLIANCE WITHOUT INSTALLING ADDITIONAL POLLUTION CONTROLS WOULD REQUIRE CLOSURE OF THE SMELTER.

Defendants (1)

• PHELPS DODGE CORPORATIONNamed in complaintNamed in settlement

Facilities (1)

• DOUGLAS REDUCTION WORKS

  MEX BORDER 1 1/2 MI DOUGLAS, DOUGLAS, AZ, 85607

  Registry ID: 110010676232

Statutes cited

• CAA 303 — Imminent/Substantial Endangerment
• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards

Enforcement conclusions (1)

• PHELPS DODGE DOUGLAS WORKSentered 1986-10-20

  Primary law: CAA

  Federal penalty: $400,000

Timeline (8 milestones)

• 1986-06-30Referred To Headquarters
• 1986-07-21Referred To Dept Of Justice
• 1986-07-28Referred TO U.S. Attorney
• 1986-07-29Complaint Filed With Court
• 1986-10-20Final Order Lodged
• 1986-10-20Final Order Entered
• 1986-10-20Concluded
• 1987-01-15Enforcement Action Closed