EPA v. Rocky Mountain Pipeline

Case summary

This settlement resolves claims that Rocky Mountain Pipeline System, LLC, Western Convenience Stores, Inc., and Offen Petroleum, Inc. illegally mixed and distributed more than 1 million gallons of gasoline that did not meet Clean Air Act emissions and fuel quality requirements. Rocky Mountain Pipeline System, LLC (Rocky Mountain) owns and operates petroleum product terminals in Dupont and Fountain, Colo. Rocky Mountain is an indirect subsidiary of Plains All American Pipeline, L.P., which is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of refined products and other petroleum products. Western Convenience Stores, Inc. (Western) owns and operates retail gasoline stations in Colorado and Nebraska. Offen Petroleum, Inc. (Offen) owns and operates retail gasoline stations in Denver and distributes gasoline and diesel fuel to customers in Colorado and Wyoming. The Defendants produced gasoline at Rocky Mountain’s terminals in Dupont and Fountain by blending natural gasoline and ethanol with previously certified gasoline (PCG) in tanker trucks. Natural gasoline is a byproduct of natural gas production. Section 211 of the Clean Air Act allows refiners to produce gasoline by adding blendstocks to previously certified gasoline, but anyone that produces gasoline by this method must meet the same emissions standards as other refiners and must comply with similar sampling, testing and quality assurance requirements to ensure that the gasoline meets the applicable standards. The complaint alleges that the Defendants violated the fuels regulations promulgated under the Clean Air Act by failing to comply with sampling, testing, and recordkeeping requirements. The complaint also alleges that the Defendants failed to comply with the renewable fuel standards and that some of the gasoline that they produced did not meet the gasoline volatility standards, which are designed to limit emissions of volatile organic compounds (VOCs) from gasoline. Western and Rocky Mountain produced gasoline in violation of the fuels regulations from October 2006 through February 2009, and Offen produced gasoline in violation of the fuels regulations from May of 2007 through February 2009. The Defendants stopped producing gasoline when EPA issued a Notice of Violation in February of 2009. The Defendants emitted excess Volatile Organic Compounds (VOCs) that contribute to the formation of ground-level ozone. VOCs, along with NOx, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. People with lung disease, children, older adults, and people who are active can be affected when ozone levels are unhealthy. Ground-level ozone exposure is linked to a variety of short-term health problems, including lung irritation and difficulty breathing, as well as long-term problems, such as permanent lung damage from repeated exposure, aggravated asthma, reduced lung capacity, and increased susceptibility to respiratory illnesses such as pneumonia and bronchitis. The companies will pay a $2.5 million civil penalty and conduct an environmental project designed to offset the harm caused by their failure to meet federal gasoline quality requirements. For more information, see http://www.epa.gov/compliance/resources/cases/civil/caa/rockymountainpipeline.html

Defendants (3)

• Offen Petroleum, Inc. (SB)Named in complaintNamed in settlement
• Western Convenience Stores, Inc., (SB)Named in complaintNamed in settlement
• Rocky Mountain Pipeline System, LLCNamed in complaintNamed in settlement

Facilities (6)

• MAGELLAN PIPELINE-DUPONT TERMINAL

  8160 KRAMERIA AVENUE, DUPONT, CO, 80024

  Registry ID: 110000738015

• MAGELLAN PIPELINE-DUPONT TERMINAL

  8160 KRAMERIA AVENUE, DUPONT, CO, 80024

  Registry ID: 110000738015

• MAGELLAN PIPELINE-DUPONT TERMINAL

  8160 KRAMERIA AVENUE, DUPONT, CO, 80024

  Registry ID: 110000738015

• MAGELLAN PIPELINE-DUPONT TERMINAL

  8160 KRAMERIA AVENUE, DUPONT, CO, 80024

  Registry ID: 110000738015

• WYCO PIPE LINE COMPANY/KANEB PIPE LINE

  1004 SOUTH SANTA FE ST, FOUNTAIN, CO, 80817

  Registry ID: 110009558406

• WYCO PIPE LINE COMPANY/KANEB PIPE LINE

  1004 SOUTH SANTA FE ST, FOUNTAIN, CO, 80817

  Registry ID: 110009558406

Statutes cited

• CAA 211 — Regulation of Fuels - Motor Vehicle and Engine Fuels

Enforcement conclusions (1)

• Rocky Mountain Pipelineentered 2011-07-12

  Primary law: CAA

  Federal penalty: $2,500,000

Timeline (6 milestones)

• 2009-07-24Enforcement Action Data Entered
• 2010-03-12Referred To Dept Of Justice
• 2011-05-04Final Order Lodged
• 2011-05-04Complaint Filed With Court
• 2011-07-12Final Order Entered
• 2017-12-06Enforcement Action Closed