Document 108w79Jxn1R0eMQ81wb0nRXrj

FILED ENVIRONMENTAL PROTECTION AGENCY 2018 SEP 25 f.. IIQ: ctl REGJON 6 .QALLAS;:TEXAS I ..,-!' t,[l,.u! . ~ft ,' ,11 ,: 1 .. ,:'"' t:Pi\ f!EG!(JN VI IN THE MATTER OF: Blanchard Refining Company LLC Respondent Texas City, Texas ADMINISTRATIVE ORDER ON CONSENT EPA DOCKET NO. CAA-06-2018-3357 ADMINISTRATIVE ORDER ON CONSENT - The Director of the Compliance Assurance and Enfo,r'cement Division of the United States Environmental ProtectionAgency, Region 6 ("EPA" or "EPA Region 6") and Blanchard Refi.ning Company LLC ("Respondent"), in the above-referenced proceeding, hereby enter into this Administrative Compliance Order ("Administrative Order on 'Consent" or "AOC" or "Order"). I. INTRODUCTION 1. The following Findings are made and an Order issued pursuant to Section 113(a)(3) of the Clean Air Act ("CAA''), 42 U.S.C. 7413(a){3), for Respondent's failure to comply with Section 112(r)(7) ofthe CAA, 42 U.S.C. 7412(r)(7), and the Chemical Accident Prevention Provisions, 40 C.F.R. Part 68 with regard to assuring suitable materials at Respondent' s facility located in Texas City, Texas. The parties to this Order are the EPA Region 6 and the Respondent. 2. This Order is entered into upon mutual agreement by the parties. Accordingly, Respondent consents to and agrees not to contest EPA's jurisdiction to issue this Order or enforce its terms . Further, Respondent will not contest EPA's jurisdiction to either compel IN THE MATTER OF Blanchard Refining Company, LLC EPA DOCKET NUMBER CAA-06-2018-3357 compliance with this Order in any subsequent enforcement proceedings, whether administrative or judicial, or to require Respondent's full compliance with the terms of this Order or impose sanctions for violations of this Order. Respondent consents to the terms of this Order. 3. This Order shall apply to and be binding upon Respondent, its agents, successors and assigns and upon all persons, contractors, and consultants acting under or for Respondent. No change in ownership or corporate or partnership status of Respondent will in any way alter the status of Respondent or its responsibilities under this Order. 4. For purposes of this proceeding, Respondent admits the jurisdictional allegations of this Order; however; Respondent neither admits nor denies the specific factual allegations or the conclusions of law contained in this Order. II. STATUTORY AND REGULATORY AUTHORITY 5. Section 112(r)(l) of the CAA, 42 U.S.C. 7412(r)(l), provides that the objective of the regulations and programs authorized under Section 112(r) shall be to prevent the accidental release of regulated substances or other extremely hazardous. substances and to minimize the consequences of any such release that does occur. 6. Pursuant to CAA 112(r)(7), 42 U.S.C. 7412(r)(7), the Administrator is authorized to promulgate regulations dictating release prevention, detection, and correction requirements. 7. On June 20, 1996, the EPA promulgated a final rule known as the Chemical Accident Prevention Provisions, 40 C.F.R. Part 68, which implements Section 112(r)(7), 42 U.S.C. 7412(r)(7), of the CAA. 8. Pursuant to 40 C.F.R. 68.1 O(a), an owner or operator of a stationary source that 2 IN THE MATTER OF Blanchard Refining Company, LLC EPA DOCKET NUMBER CAA-06-2018-3357 has more than a threshold quantity of a regulated substance in a process ("Covered Process"), as determined under 40 C.F.R. 68.115, shall comply with the requirements of 40 C.F.R. Part 68 no later than the latest of the following dates: (I) June 21, 1999; (2) three years after the date on which a regulated substance is first listed under Section 68.130; or (3) the date on which a regulated substance is first present above a threshold quantity in a process. 9. Pursuant to 40 C.F.R. 68.12(a), an owner or operator of a stationary source subject to Part 68 requirements must submit a Risk Management Plan ("RMP") as provided in 40 C.F.R. Part 68 Subpart G ( 68.150-68.185) that reflects all covered processes at the stationary source. I0. 40 C.F.R. Part 68 provides general requirements applicable to owners or operators of a stationary source subject to Part 68. 11. 40 C.F.R. Part68 also establishes requirements that apply to an owner or operator depending on whether the stationary source operates processes subject to one of three "Programs" -- Program 1, Program 2, and Program 3, as these program levels are defined in 40 C.F.R. 68.10. 12. Pursuant to 40 C.F.R. 68.12(d), the owner or operator of a stationary source with a process subject to the "Program 3" requirements of the Part 68 regulations, as determined pursuant to 40 C.F.R. 68.lO(d), must comply with the chemical accident prevention requirements of 40 C.F.R. Part 68, Subpart D (Program 3 Prevention Program, at 40 C.F.R. 68.65-68.87). 13. Section 113(a)(3) of the CAA, 42 U.S.C. 74!3(a)(3), authorizes EPA to issue compliance orders for violations of specific sections of the CAA, including violations of Section 112(r), 42 U.S.C. 7412(r). A copy of the order must be sent to the relevant State air pollution 3 IN THE MATTER OF Blanchard Refining Company, LLC EPA DOCKET NUMBER CAA-06-2018-3357 control agency. An order relating to a violation of Section 112 of the CAA can take effect . immediately upon issuance. 14. The authority to issue orders pursuant to Section l13(a)(3) of the CAA has been delegated to EPA Region 6's Regional Administrator, and in tum to the Director of EPA Region 6's Compliance Assurance and Enforcement Division. 15. "Covered process" is defined in 40 C.F.R. 68.3 as a process that has a regulated substance present in more than a threshold quantity as determined under 68.115. 16. "Owner or operator" shall mean any person who owns, leases, operates, controls, or supervises a stationary source. 17. "Person" is defined in Section 302(e) of the CAA, 42 U.S.C. 7602(e), as including an individual, corporation, partnership, association, state, municipality, political subdivision of a state, and any agency, department, or instrumentality of the United States and any officer, agent, or employee thereof. 18. "Process" is defined in 40 C.F.R. 68.3as any activity involving a regulated substance including any use, storage, manufacturing, handling, or on-site movement of such substances, or combination of these activities. For the purposes of this definition, any group of vessels that are interconnected, or separate vessels that are located such that a regulated substance could be involved in a potential release, shall be considered a single process. 19. "Regulated substance" is defined in 40 C.F.R. 68.3 as any substance listed pursuant to Section 112(r)(3) of the CAA as amended, in 68.130. 20. "RMP" is defined in 40 C.F.R. 68.3 as the risk management plan required under subpart G of 40 C.F.R. Part 68. 4 IN THE MATTER OF Blanchard Refining Company, LLC EPA DOCKET NUMBER CAA-06-2018-3357 21. "Stationary source" is defined in Section 112(r)(2)(C) of the CAA and 40 C.F.R. 68.3 as any buildings, structures, equipment, installations or substance emitting stationary activities which belong to the same industrial group, which are located on one or more contiguous properties, which are under the control of the same person (or persons under common control), and from which an accidental release may occur. 22. "Threshold quantity" is defined in 40 C.F.R. 68.3 as the quantity specified for regulated substances pursuant to Section 112(r)(5) of the CAA as amended, listed in 68.130 and determined to be present at a stationary source as specified in 68.115 of this part. III, ALLEGATIONS 23. Respondent is a limited liability company and authorized to do business in the State of Texas. 24. Respondent is a "person" as that term is defined in Section 302(e) of the CAA, 42 U.S.C. 7602(e), l!nd within the meaning of Section 113(d) of the CAA, 42 U.S.C. 74 IJ(d). 25. At all times relevant to this AOC, Respondent owned and operated a petroleum refinery, which is located at 2401 5'h Avenue South, Texas City, Texas 77590 ("Facility"). 26. Respondent's RMP lists covered processes subject to Program 3 requirements, including the Ultracracker C'ULC") unit. 27. The ULC process consists of three sixty-three-foot-tall pressure cylindrical reactors, each containing five individual catalyst beds. The hydrocracking reaction converts the larger hydrocarbon chains into smaller, more valuable hydrocarbons. 28. On March I0, 2018, operators were returning the ULC to service after a turnaround that included maintenance on the E-1 03 effluent exchanger. 5