EPA alleged that the company violated CAA section 112(r) which requires facility owners and operators to ensure that regulated and other extremely hazardous substances are managed safely.
Specifically, EPA alleged that PES violated CAA 112(r) and implementing regulations found at 40 C.F.R. Part 68, which requires facilities to identify and assess the hazards posed by regulated substances, develop an accident prevention program to reduce the risk of accidental releases, and develop an emergency response program.
According to EPA, the company violated these requirements by, among other things, failing to ensure that its refining operations, particularly the hydrofluoric acid unit, were designed, built, and operated in accordance with recognized and generally accepted good engineering practices.
The proposed $4.2 million settlement, filed in U.S. Bankruptcy Court represents the largest CAA 112(r) penalty EPA has ever imposed for a single incident.
EPA has three previous settlements with PES from 2020, one regarding CAA Renewable Fuel Standards, one for compliance issues related to a prior CAA Consent Decree, and the other for recovery of EPA costs related to the refinery’s explosion and fire under the Comprehensive Environmental Response, Compensation, and Liability Act.
The proposed settlement in which PES did not admit liability will have a 30-day public notice and comment period and require final court approval.
If approved by the court as an allowed general unsecured claim in the PES bankruptcy matter, the penalty will be paid pursuant to a court-approved bankruptcy reorganization plan. Any monies collected will go to the U.S. Department of Treasury.
The former refinery no longer stands or operates at the South Philadelphia location. The current owners intend to use the property as a warehouse distribution center.
PA Oil & Gas Industry Public Notice Dashboards:
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - October 12 [PaEN]
-- DEP Posted 87 Pages Of Permit-Related Notices In October 12 PA Bulletin [PaEN]
Related Articles This Week:
-- Pennsylvania Voters Overwhelmingly Support Stricter Regulations On Fracking, New Poll Finds [PaEN]
-- Sen. Bartolotta, Sen. Yaw Announce Bill To Withhold Gas Drilling Impact Fees To Municipalities That Set More Protective Standards On Natural Gas Development Than State Law, And While There Is a Legal Challenge To Local Restrictions [PaEN]
-- Saint Vincent College Study Finds Counties With Shale Gas Fracking Wells Using Chemicals That Target Certain Hormones Have Greater Incidence Of Pre-Term Births, Low Birth Weights [PaEN]
-- The Derrick: PUC Considering Emergency Order To Have Aqua Pennsylvania Take Over 6 Rhodes Estate Water Companies [Fallout Continues From Conventional Oil Well Wastewater Spill 15 Months Ago In Venango County] [PaEN]
-- DEP Begins Accepting Applications For New Methane Reduction Grants To Plug Conventional Oil, Gas Wells Oct. 16 [PaEN]
-- Evangelical Environmental Network Delivers Over 36,000 Comments From Pro-Life Christians To Gov. Shapiro, DEP In Support Of Strong Oil & Gas Industry Methane Emission Controls [PaEN]
-- Beaver County Marcellus Awareness Community Receives Grant To Strengthen Communications and Community Engagement Initiatives [PaEN]
-- Beaver County Residents Invited To Join An Oct. 23 In-Person Tour Of Shale Gas Fracking Sites & Infrastructure In Washington County And Discover Its Costs [PaEN]
-- DEP Invites Comments On Proposed Air Quality General Permit (GP-16) Covering Gaseous Fuel-Fired Spark Ignition Internal Combustion Engines [Copy Of Documents ]
-- Team PA & Clean Air Task Force Convene Leaders To Discuss Challenges, Opportunities Of Industrial Decarbonization; DOE Provides Update On Decarbonization Investments In PA [PaEN]
-- PJM Interconnection Winter Outlook: Adequate Power Supplies Available Under Normal Conditions; PJM Delays Next Power Auction After Prices Spike [PaEN]
-- Beaver County Marcellus Awareness Community Urges EPA To Move Forward With Strong Regulation Of Vinyl Chloride Under Federal Toxic Substances Control Act, While Calling For A Ban [PaEN]
NewsClips:
-- The Energy Age Blog: ‘Amity & Prosperity’ By Eliza Griswold Thrust Fracking In Washington County, PA Into The National Spotlight
-- Observer-Reporter: ‘Amity And Prosperity’ Book By Eliza Griswold Thrust Fracking [And Its Environmental & Health Impacts In] Washington County, Into National Spotlight [PDF of Article] [Part 5]
-- Observer-Reporter: 20 Years On, Fracking’s Potential Health Impacts Eyed [Part 4] [PDF of Article]
-- Observer-Reporter Letter: There’s Another Side To The 'Shale Gas Revolution' [PaEN]
-- Environmental Health Project: Health Professional’s Toolkit On Oil & Gas Development Health Impacts
--Washington & Jefferson College: October Marks 20th Anniversary Of Marcellus Shale In Appalachia
-- Observer-Reporter Editorial: Use Reason With Fracking
-- The Economist: The Shale Revolution Helped Make America’s Economy Great [‘It’s Like A Giant Factory Producing Energy’] [PDF of Article]
-- Spotlight PA: No One Is Using $2.6 Billion Hydrogen, Natural Gas Tax Credit, Shapiro Wants To Rewrite The Law To Boost Electricity Production
-- Utility Dive: Possible PJM Market Changes Could Lower Near-Term Capacity Prices, But Ultimately Give Rise To Higher Prices For A Longer Period Of Time - Morgan Stanley
-- The Allegheny Front - Kara Holsopple: New Guidelines Center The Needs Of People With Disabilities During Petrochemical Disasters
-- Inquirer - Frank Kummer: EPA Reaches $4.2 Million Settlement, Largest Of Its Kind, Over 2019 Philadelphia Refinery Explosion [Includes Copy Of Proposed Settlement]
-- WHYY - Sophia Schmidt: EPA Reaches Historic $4.2 Million Settlement Over 2019 South Philly Refinery Explosion, Fire
-- AP: EPA Reaches $4.2 Million Settlement Over 2019 Explosion, Fire At Philadelphia Refinery
-- WPXI: Small Natural Gas Leaks Found In More Than 30 Homes In Cranberry Twp., Butler County
[Posted: October 8, 2024] PA Environment Digest
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