PA Environment Digest Blog: DEP Settlement With Energy Transfer/Sunoco, Atlantic Richfield Imposes $3.3 Million Penalty, Including $1 Million Community Improvement Projects For Polluting Allegheny River

On November 24, the Department of Environmental Protection announced it has entered into a Consent Order and Agreement (COA) with Energy Transfer, LLC (formerly Sunoco Inc.) and Atlantic Richfield Company requiring the companies to enhance remediation efforts related to decades-old petroleum contamination and address ongoing oil sheens on the Allegheny River in Pittsburgh’s Lawrenceville neighborhood.

Under the agreement, DEP will collect a $3.3 million civil penalty against the operators for multiple violations of the Clean Streams Law, the Storage Tank and Spill Prevention Act, and the Solid Waste Management Act.

[Note: On August 27, the Three Rivers WaterKeeper, represented by Appalachian Mountain Advocates, filed notices of intent to sue multiple entities for alleged violations of the state Clean Streams Law for polluting the Allegheny River. Read more here.]

The penalty resolves years of unlawful discharges of petroleum and tar-like material into the river and surrounding soil and groundwater.

The order also requires a full and final cleanup of the site and establishes strict deadlines for remediation, reporting, and accountability.

This agreement ensures the restoration and long-term protection of the Allegheny River and provides the opportunity for meaningful reinvestment in the surrounding community.

“This settlement sends a clear message that Pennsylvania will not tolerate ongoing violations that harm our waterways and communities,” said DEP Secretary Jessica Shirley. “The Allegheny River is one of our most vital natural resources, and DEP will ensure that Energy Transfer and Atlantic Richfield Company take every step necessary to eliminate these discharges and restore the site.”

The contamination stems from former operations at the Standard Oil/Atlantic Refining refinery, which occupied the site from 1868 to 1930.

The area now contains multiple properties: a petroleum terminal owned by Energy Transfer, a cold-storage facility owned by Allegheny Cold Storage Company, and parking areas owned by UPMC.

Investigations have documented three distinct remediation zones resulting from historic industrial activities at the site.

Despite decades of remedial work beginning in 1977, visible sheen and tar seeps have persisted.

DEP issued Notices of Violation in December 2023 after inspectors confirmed unpermitted discharges to the Allegheny River.

The COA holds both companies jointly responsible for all remaining contamination, directing them to identify sources, remove or contain pollutants, and comply with Act 2 cleanup standards.

The agreement requires:

-- Full characterization of contamination and a complete remedial action plan for all affected properties.

-- Excavation and recovery systems for petroleum impacts.

-- Riverbank remediation and cleanup of tar deposits.

-- Implementation of a Revised Sheen Management Plan to prevent any oil from reaching the river.

DEP will also recover $14,329.23 in agency response costs and continue to oversee all field activities through quarterly reporting and on-site inspections.

Community Improvement Projects

Of the $3.3 million, $1 million may be used to fund community environmental projects (CEPs), to be proposed and approved by DEP within 120 days of the agreement.

The projects must directly benefit nearby communities impacted by historical pollution and must be completed within five years. Any penalty balance not allocated to the CEPs must be paid directly to the Commonwealth.

The COA establishes enforceable cleanup milestones and imposes stipulated penalties of $500 per day for missed deadlines and $1,000 per day for any sheen observed escaping containment booms.

DEP will monitor progress through required quarterly progress reports and continued site inspections.

In addition to civil penalties, Energy Transfer and Atlantic Richfield Company must reimburse DEP annually for all future oversight costs.

The Department retains full enforcement authority should either company fail to meet the terms of the agreement.

Click Here for a copy of the Consent Order.

Click Here for the DEP announcement.

For more information on environmental programs in Pennsylvania, visit DEP’s website. Submit Environmental Complaints; Click Here to sign up for DEP’s newsletter; sign up for DEP’s eNotice; Like DEP on Facebook, Follow DEP on Twitter and visit DEP’s YouTube Channel.