U.S. JUSTICE DEPARTMENT SETTLES CLEAN AIR VIOLATIONS WITH DAIRY COMPANY

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FROM: U.S. DEPARTMENT OF JUSTICE

Monday, October 1, 2012
Settlement with Suiza Dairy Corporation for Violations at Facilities in Puerto Rico Will Make Facilities Safer, Benefit Nearby Communities

WASHINGTON – Suiza Dairy has agreed to pay a penalty and make significant upgrades to settle Clean Air Act violations, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. The case stems from violations at two Suiza Dairy Corporation dairies located in Rio Piedras and Aguadilla, Puerto Rico, including two major releases of anhydrous ammonia from the Rio Piedras facility.

The Clean Air Act violations stem from Suiza’s failure of its general duty of care to identify hazards and to maintain safe facilities and its failure to comply with regulatory requirements for process safety management under the Clean Air Act, as well as Suiza’s failure to comply with administrative orders at both facilities.

"This settlement penalizes Suiza for violations of the Clean Air Act that resulted in two illegal releases of poisonous gas that put the community at risk, including one release that caused the hospitalization of several residents," said Ignacia S. Moreno, Assistant Attorney General of the Environment and Natural Resources Division at the Department of Justice. "Today’s agreement will prevent future violations of the Clean Air Act safety standards by requiring Suiza to upgrade its refrigeration technology and emergency notification system."

"Reducing toxics in the air is a priority for the EPA. These facilities were very poorly run and the communities around them suffered as a result, with some people being sickened by a major release of ammonia into the air," said Judith A. Enck, EPA Regional Administrator. "This settlement requires the company to comply with the law and not jeopardize people’s health."

As part of the consent decree announced today, Suiza will pay a penalty of $275,000. Suiza will also spend approximately $3.75 million on projects that will significantly improve the refrigeration systems at both facilities, considerably reduce the amount of anhydrous ammonia in the systems at both facilities, improve alarm and ammonia release notification procedures, and provide medical training and/or equipment to medical personnel to treat persons affected by exposure to anhydrous ammonia. Suiza will also conduct community emergency drills in the communities located adjacent to the facilities, to train community members on what to do in the event of an accidental release of anhydrous ammonia.

Suiza’s first accidental ammonia release from the Rio Piedras facility was in July 2005. Then in May 2007, approximately 1,146 pounds of anhydrous ammonia was released into the atmosphere causing at least 14 residents from the community located near the Rio Piedras Facility to require medical attention. At least nine of the people requiring medical attention also required an overnight stay in the local hospital.

Following these releases, and complaints from residents near the Aguadilla facility, EPA submitted information requests to Suiza and conducted multiple inspections at both facilities. In September 2007, EPA issued Suiza administrative orders for both facilities, ordering Suiza to bring the facilities into compliance. Suiza failed to comply with both orders.

As a result of Suiza’s failure to comply with the orders and the substantive violations at both facilities, EPA reinspected both facilities in May and October 2009. Over 40 violations were identified at each facility; violations included, for example: corrosion to anhydrous ammonia transfer lines, failure to implement an adequate alarm system, improper labeling of valves and equipment, and improper ventilation.

The settlement requires Suiza to implement over 40 compliance measures at each facility to address the violations. In addition, the company has agreed to spend at least $3 million to reduce the amount of anhydrous ammonia used in the refrigeration process at the facilities, from approximately 18,000 pounds to less than 8,400 pounds at the Rio Piedras facility (54 percent reduction) and from 4,700 pounds to less than 3,300 pounds at the Aguadilla facility (30 percent reduction). Suiza will also install an enhanced alarm system at the Aguadilla facility that will continuously monitor anhydrous ammonia operating pressures, temperatures and levels, as well as automatically alert operators to conditions not within normal operational ranges for these parameters.

Justice Department and the EPA conducted community meetings near both facilities in August 2011. Partly as a result of that outreach, and the suggestions made by community members at those meetings, Suiza has agreed to conduct community emergency drills in the communities located adjacent to the facilities. Suiza will coordinate with first responders and EPA to simulate an accidental anhydrous ammonia release and train community members on what to do in the event of such a release.

PLASTICS PRODUCER RESOLVES CLEAR AIR ACT VIOLATIONS

FROM:  U.S. DEPARTMENT OF JUSTICE
Thursday, May 31, 2012
Plastics Producer SABIC Agrees to Reduce Harmful Air Pollution from Leaking Equipment to Resolve Clean Air Act Violations in Indiana and Alabama
SABIC Innovative Plastics US LLC, and its subsidiary, SABIC Innovative Plastics Mt. Vernon LLC, have agreed to pay an approximately $1 million civil penalty and improve leak detection and t (CAA) at chemical marepair practices to settle alleged violations of the Clean Air Acnufacturing facilities in Mt. Vernon, Ind., and Burkville, Ala., the U.S. Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today. Emissions of hazardous air pollutants (HAPs) from leaking equipment may cause serious health effects including cancer, reproductive issues and birth defects.

“This compliance program continues our efforts to control fugitive emissions and will require SABIC to upgrade its monitoring and maintenance practices to help prevent future violations,” said Robert G. Dreher, Principal Deputy Assistant Attorney General for the Environment and Natural Resources Division at the Department of Justice.

“Communities near large industrial facilities depend on EPA to protect public health and the environment by enforcing our nation’s environmental laws,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement with SABIC will reduce the potential for future violations and protect residents in Indiana and Alabama from emissions of hazardous air pollutants.”

In addition to paying a penalty, SABIC will implement a comprehensive program to reduce emissions of HAPs from leaking equipment such as valves and pumps. The emissions, known as “fugitive” emissions because they are not discharged from a stack but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires SABIC to implement enhanced work practices, including more frequent leak monitoring, better repair practices, and innovative new efforts designed to prevent leaks.

The program also requires SABIC to replace valves with new “low emissions” valves or valve packing material, designed to significantly reduce the likelihood of future leaks of HAPs. In response to EPA’s inspection of the Mt. Vernon facility, SABIC engineered HAP emission controls for hundreds of drains and trenches and the settlement further requires SABIC to control similar emissions from an oil/water separator. The estimated cost of these controls is almost $4 million. SABIC will also invest an additional $1.3 million to control HAP emissions from certain process vents as a supplemental environmental project. The compliance program and engineered controls will reduce HAP emissions by up to 136.7 tons per year.

According to the 15-count complaint, filed simultaneously with the settlement today in the Southern District of Indiana, SABIC allegedly violated CAA requirements to monitor and repair leaking equipment, demonstrate compliance with regulations applicable to chemical plants, and report known violations to EPA.

HESS CORPORATION RESOLVES CLEAN AIR ACT VIOLATIONS AT NEW JERSEY REFINERY

FROM:  DEPARTMENT OF JUSTICE
Wednesday, April 25, 2012
Hess Corporation to Install $45 Million in Pollution Controls and Pay $850,000 Penalty to Resolve Clean Air Act Violations at New Jersey Refinery
WASHINGTON – Hess Corporation has agreed to pay an $850,000 civil penalty and spend more than $45 million in new pollution controls to resolve Clean Air Act violations at its Port Reading, N.J., refinery, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.  Once fully implemented, the controls required by the settlement are estimated to reduce emissions of nitrogen oxide (NOx) by 181 tons per year and result in additional reductions of volatile organic compounds (VOCs).  High concentrations of NOx and VOCs, key pollutants emitted from refineries, can have adverse impacts on human health, including contributing to childhood asthma, and are significant contributors to smog.

“This settlement is the 31st such agreement with petroleum refineries across the nation. Hess joins a growing list of corporations who have entered into comprehensive and innovative agreements with the United States that will result in cleaner, healthier air for communities across the nation,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice.  “For example, this agreement will improve air quality for New Jersey residents by requiring Hess to install advanced pollution control and monitoring technology and adopt more stringent emissions limits.”

“EPA is committed to protecting communities by reducing air pollution from the largest sources,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance.  “This settlement will reduce harmful emissions that impact air quality, protecting the residents of Port Reading and New Jersey.”

The settlement requires new and upgraded pollution controls, more stringent emission limits, and aggressive monitoring, leak-detection and repair practices to reduce emissions from refinery equipment and processing units.

The government’s complaint, filed on April 19, 2012, alleged that the company made modifications to its refinery that increased emissions without first obtaining pre-construction permits and installing required pollution control equipment.  The Clean Air Act requires major sources of air pollution to obtain such permits before making changes that would result in a significant emissions increase of any pollutant.
The state of New Jersey actively participated in the settlement with Hess and will receive half of the civil penalty.

The settlement with Hess is the 31st under an EPA initiative to improve compliance among petroleum refiners and to reduce significant amounts of air pollution from refineries nationwide through comprehensive, company-wide enforcement settlements.  The first of these settlements was reached in 2000.  With today’s settlement, 108 refineries operating in 32 states and territories – more than 90 percent of the total refining capacity in the United States – are under judicially enforceable agreements to significantly reduce emissions of pollutants.  As a result of the settlement agreements, refiners have agreed to invest more than $6 billion in new pollution controls designed to reduce emissions of sulfur dioxide, nitrogen dioxide and other pollutants by over 360,000 tons per year.