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EPA Files $4.2 Million Settlement Of Air Pollution Violations For 2019 Philadelphia Refinery Explosion, Fire; Public Comments Invited

On October 8, the U.S. Environmental Protection Agency announced the federal government has settled its final federal Clean Air Act (CAA) claim against Philadelphia Energy Solutions Refining and Marketing, LLC pertaining to the June 21, 2019 fire and explosion at its former South Philadelphia refinery.

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 Weekly Compliance Dashboard - October 5 to 18 - Conventional Well Owners Issued 767 Violations For Abandoning Their Wells - So Far, More Than Double Number In 2019; Leaking Gas Storage Area Wells [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - October 12 [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - October 19 [PaEN]

-- DEP Posted 87 Pages Of Permit-Related Notices In October 12 PA Bulletin [PaEN]

-- DEP Posted 57 Pages Of Permit-Related Notices In October 19 PA Bulletin [PaEN]

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-- Pennsylvania Voters Overwhelmingly Support Stricter Regulations On Fracking, New Poll Finds [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]

-- 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]

-- Observer-Reporter Letter: There’s Another Side To The 'Shale Gas Revolution' [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]

-- Observer-Reporter Guest Essay: Why Politicians Want You To Pay More For Natural Gas - By Patrick McDonnell, CEO of PennFuture, Former Secretary of DEP [PaEN]

-- PJM Interconnection Winter Outlook: Adequate Power Supplies Available Under Normal Conditions; PJM Delays Next Power Auction After Prices Spike [PaEN]

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-- DEP Invites Comments On Proposed Air Quality General Permit (GP-16) Covering Gaseous Fuel-Fired Spark Ignition Internal Combustion Engines [Copy Of Documents ]

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-- 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]

-- EPA Files $4.2 Million Settlement Of Air Pollution Violations For 2019 Philadelphia Refinery Explosion, Fire; Public Comments Invited [PaEN]

NewsClips:

-- The Energy Age Blog: ‘Amity & Prosperity’ By Eliza Griswold Thrust Fracking In Washington County, PA Into The National Spotlight