EPA v. Marathon Petroleum

Case summary

This case involves various alleged Clean Air Act violations by Marathon Petroleum at 10 Marathon facilities. Marathon failed to comply with certain Clean Air Act fuel quality emissions standards and recordkeeping, sampling and testing requirements. Marathon self-reported many of these issues to EPA. In their complaint, EPA and DOJ allege that Marathon: > Produced about 356 million gallons of reformulated gasoline at its Texas City, Texas refinery during 2007 that did not meet Clean Air Act standards for reducing volatile organic compounds. Volatile organic compounds are one of the primary constituents of smog and react in sunlight to form ground-level ozone. Breathing ozone can trigger a variety of health problems including chest pain, coughing, throat irritation and congestion, and can worsen bronchitis, emphysema and asthma. Children, the elderly and people who have lung diseases such as asthma are particularly prone to these problems. > Produced more than 40 million gallons of gasoline at the Texas City, Texas refinery in 2009 that exceeded standards for sulfur levels. The goal of the Clean Air Act program that regulates sulfur in gasoline is to minimize emissions from vehicles and to ensure emissions control systems function effectively. > Sold about 12 million gallons of gasoline that contained elevated levels of ethanol. Excess ethanol in gasoline can harm emission control components on some vehicles and engines. > Sold about 1 million gallons of gasoline at its Tampa, Fl. terminal in 2013 that exceeded standards for volatility, known as the Reid Vapor Pressure, that help control ground level ozone during summer months. Gasoline with higher volatility results in increased emissions of volatile organic compounds, which contribute to the formation of ground level ozone. > Failed to comply with numerous sampling, testing, recordkeeping, and reporting requirements for fuel production. EPA discovered these violations during inspections of Marathon refineries and laboratories in 2008 and 2009. The sampling, testing, recordkeeping, and reporting requirements of the fuels program provide the foundation for EPA?s compliance program. Under the consent decree, Marathon will spend over $2.8 million on pollution controls to reduce emissions of volatile organic compounds at its distribution terminals in Indiana, Kentucky and Ohio. The pollution controls include installation of geodesic domes, fixed roofs, or secondary rim seals and deck fittings on 14 fuel storage tanks at several of its fuel distribution terminals in order to reduce emissions of volatile organic compounds. Marathon is also required to use innovative pollutant detection technology during the implementation of the environmental mitigation projects. Marathon will use an infrared gas-imaging camera to inspect the fuel storage tanks in order to identify potential defects that may cause excessive emissions. If defects are found, Marathon will conduct up-close inspections and perform repairs where necessary. EPA?s Next Generation Compliance Strategy promotes advanced emissions and pollutant detection technology so that regulated entities, the government, and the public can more easily see pollutant discharges, environmental conditions, and noncompliance. Many of the facilities where the pollution controls will be installed are located in areas that may present environmental justice concerns. More information about EPA?s Next Generation Compliance Strategy is available at: http://www2.epa.gov/compliance/next-generation-compliance. Marathon will also pay a $2.9 million civil penalty and retire 5.5 billion sulfur credits, which have a current market value of $200,000. Sulfur credits are generated when a refiner produces gasoline that contains less sulfur than the federal sulfur standard. These credits can be sold to other refiners that may be unable to meet the standard.

Defendants (2)

• Marathon Petroleum Company LLCNamed in complaintNamed in settlement
• MARATHON PETROLEUM COMPANY LPNamed in complaintNamed in settlement

Facilities (16)

• MARATHON PETROLEUM TEXAS CITY REFINERY

  502 10TH STREET SOUTH, TEXAS CITY, TX, 77590

  Registry ID: 110056967368

• MARATHON PETROLEUM CO - TAMPA FL TERMINAL

  425 SOUTH 20TH STREET, TAMPA, FL, 33605-6025

  Registry ID: 110000746916

• BP PRODUCTS NORTH AMERICA INC

  7401 OLD MOUNT HOLLY ROAD, CHARLOTTE, NC, 282141788

  Registry ID: 110000492672

• MARATHON PETROLEUM TEXAS CITY REFINERY

  502 10TH STREET SOUTH, TEXAS CITY, TX, 77590

  Registry ID: 110056967368

• MARATHON OIL

  3920 KRAMERS LANE, LOUISVILLE, KY, 40216

  Registry ID: 110000378528

• MARATHON ASHLAND PET LLC

  1770 OLD FRANKFORT PK, LEX, LEXINGTON, KY, 40504

  Registry ID: 110013836974

• BP OIL COMPANY

  2101 HECKSCHER DR., JACKSONVILLE, FL, 322260000

  Registry ID: 110000869631

• MARATHON ASHLAND PET LLC

  1770 OLD FRANKFORT PK, LEX, LEXINGTON, KY, 40504

  Registry ID: 110013836974

• BP OIL COMPANY

  2101 HECKSCHER DR., JACKSONVILLE, FL, 322260000

  Registry ID: 110000869631

• MARATHON PETROLEUM COMPANY

  539 SOUTH MAIN STREET, FINDLAY, OH, 45840

  Registry ID: 110004589133

• MARATHON PETROLEUM CO LLC - BIG SANDY ASPHALT TERMINAL

  15085 MAYO TRAIL ROAD, CATLETTSBURG, KY, 41129

  Registry ID: 110070873285

• US ENERGY

  1031 HURLBUT STREET, GREEN BAY, WI, 54303

  Registry ID: 110000879005

• MARATHON ASHLAND PET LLC

  1770 OLD FRANKFORT PK, LEX, LEXINGTON, KY, 40504

  Registry ID: 110013836974

• MARATHON PETROLEUM CO - TAMPA FL TERMINAL

  425 SOUTH 20TH STREET, TAMPA, FL, 33605-6025

  Registry ID: 110000746916

• MARATHON PETROLEUM

  12700 TORONTO ST, DETROIT, MI, 48217

  Registry ID: 110000406864

• …and 1 more

Statutes cited

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

Enforcement conclusions (1)

• Marathon Petroleumentered 2015-07-02

  Primary law: CAA

  Federal penalty: $2,900,000

Timeline (6 milestones)

• 2009-08-12Enforcement Action Data Entered
• 2014-04-18Referred To Dept Of Justice
• 2015-05-19Final Order Lodged
• 2015-05-19Complaint Filed With Court
• 2015-07-02Final Order Entered
• 2019-05-01Enforcement Action Closed