Document 2jrrdDEz8VOgdj49pnrbmjnrg

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 2Di3 BEFORE THE ADMINISTRATOR In the Matter of: The Premcor Refining Group, Inc., A Valero Company Port Arthur, Texas EPA Docket No. CAA-06-2013-3339 CONSENT AGREEMENT AND FINAL ORDER The Director of the Compliance Assurance and Enforcement Division of the United States Environmental Protection Agency ("EPA"), Region 6 ("Complainant") and The Premcor Refining Group, Inc., A Valero Company ("Respondent") in the above- referenced proceeding, hereby agree to resolve this matter through the issuance of this Consent Agreement and Final Order ("CAFO"). I. PRELIMINARY STATEMENT L This proceeding for the assessment of civil penalties is brought by EPA pursuant to sections l13(a)(3) and 113(d)(l)(B) of the Clean Air Act, as amended ("Act" or "CAA''), 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), and is simultaneously commenced and concluded through the issuance of this CAFO pursuant to 40 C.P.R. 22.13(b)(2) and (3), and 22.34. 2. For purposes of this proceeding, Respondent admits the jurisdictional allegations contained herein; however Respondent neither admits nor denies the specific factual allegations contained in this CAFO. Docket No. CAA-06-2013-3339 3. Respondent explicitly waives any right to contest the allegations and its right to appeal the proposed Final Order set forth herein, and waives all defenses which have been raised or could have been raised to the claims set forth in this CAFO. 4. Compliance with all the terms and conditions of this CAFO shall resolve only those violations which are set forth herein. 5. Respondent consents to the issuance of this CAFO and to the assessment and payment of the stated civil penalty in the amount and by the method set forth in this CAFO. II. ALLEGATIONS 6. Respondent is a corporation authorized to do business in the State of Texas. 7. Respondent owns and operates the Port Arthur Refinery, located at 1801 South Gulfway Drive, Jefferson County, Texas 77640 ("Facility"). 8. The Respondent produces processes, handles, or stores hydrogen sulfide. 9. Hydrogen sulfide is an extremely hazardous substance. 10. On October I, 2012, there was an incident at the Facility. 11. The incident involved the release of 462.61 pounds of hydrogen sulfide to the ambient air from Sour Water Tank #88. 12. The incident began when Sat Gas Recovery Unit (SGRU) 7945 operators began troubleshooting the cause of excessive pressure in the Sour Water Drum (D-1901). 13. The operators blocked off all the liquid feeds into D-1901 but the pressure remained high in the drum. 14. The DCS board operator wanted to check the pressure indicator by opening the bottoms liquid valve from D-190 1 to Sour Water Tank #88 to determine if the pressure indication would drop. Page 2 of 11 Docket No. CAA-06-2013-3339 15. At 1:00am, the DCS operator opened the flow control valve. 16. However, D-1901 had no liquid level when the flow controller was opened. 17. The operator was aware there was no liquid in D-1901, so he close!y monitored the drum and the pressure indicator, while continuing with his other duties. 18. At 3:30am, FCCU-1241 area hydrogen sulfide monitors began to alann. At the same time, an odor was detected on the northeast side of the refinery. 19. Operators from the north side of the refinery investigated the potential source and determined the odor was coming from Sour Water Tank #88. 20. In an effort to identify the source of the material going to Sour Water Tank #88, the Refinery Shift Superintendent (RSS) notified the Shift Supervisors throughout the refinery to check their sour water levels. 21. Each Shift Supervisor was notified except for the Supervisor for SGRU 7945 because the RSS was not aware the SGRU 7945 was lined up to send sour water to Sour Water Tank #88. 22. SGRU 7945 was a new unit, having been recently been started up and connected to the other process units. 23. At 5:00am, the operator at SGRU 7945 closed the flow control valve. 24. Later, it was determined that the high pressure in D-1901 was caused by hydrocarbon blow-by from an LPG contractor in the Rich Amine Flash Drum (D-1904), which is directly connected to D-1901. 25. Pursuant to section 112(r)(l) of the CAA, 42 U.S.C. 7412(r)(l), an owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to section 112(r)(3) of the CAA, 42 U.S.C. 7412(r)(3), or any other extremely hazardous substance, has a general duty to: (I) identify hazards which Page 3 of 11 Docket No. CAA-06-20I 3-3339 may result from accidental releases of such substances using appropriate hazard assessment techniques; (2) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and (3) minimize the consequences of accidental releases that do occur. 26. Respondent is a "person" as that term is defined by section 302(e) of the CAA, 42 U.S.C. 7602(e). 27. The Facility is a "stationary source" as that tetm is defined by section I I2(r)(2)(C) of the CAA, 42 U.S.C. 74I2(r)(2)(C). 28. Respondent is the "owner or operator" as those terms are defined by section II2(a)(9) of the CAA, 42 U.S.C. 74I2(a)(9), of a stationary source. 29. At the Facility, Respondent produces, processes, handles, or stores substances listed in, or pursuant to, CAA I I2(r)(3) or other extremely hazardous substances identified as such due to toxicity, reactivity, flammability, volatility, or corrosivity. 30. The release of hydrogen sulfide at the Facility on October 1, 2012, constituted an "accidental release" as that term is defined by section I I2(r)(2)(A) of the CAA, 42 U.S.C. 74I2(r)(2)(A). 31. Respondent failed to design and maintain a safe facility and did not take such necessary steps to prevent accidental releases by not communicating with the Shift Supervisor for the SGRU 7945 to check the sour water levels becanse the RSS was not aware that the SGRU 7945 was lined up to send sour water to Sour Water Tank #88 because this is a new unit that had been recently started up. 32. Respondent's failure constitutes a violation of the general duty clause in section 112(r)(l) of the CAA, 42 U.S.C. 74I2(r)(l). 33. Respondent is therefore subject to the assessment of penalties pursuant to Page 4 of 11 Docket No. CAA-06-2013-3339 sections 113(a)(3) and 113(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), for violation of the general duty clause of section 112(r)(l) of the CAA, 42 U.S.C. 7412(r)(l). III. TERMS OF SETTLEMENT A. CIVILPENALTY 34. Pursuant to the authority granted in sections ll3(a)(3) and 113(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), and taking into consideration the size of the Respondent's business, the economic impact of the penalty on the Respondent's business, the Respondent's full compliance history and good faith efforts to comply, the duration of the violation, payment by Respondent of penalties previously assessed for the same violation (if any), the economic benefit of noncompliance, and the seriousness of the violation, as well as other factors which justice may require, EPA and Respondent agree that an appropriate penalty to settle this matter is thirty thousand dollars ($30,000). 35. Respondent shall pay the assessed penalty within thirty (30) days of the effective date of this CAPO. Respondent shall pay the assessed civil penalty by company, certified check, cashier's check, or wire transfer, made payable to "Treasurer, United States of America, EPA- Region 6." Payment shall be remitted in one of three ways: regular U.S. Postal mail (including certified mail), or U.S. Postal Service express mail - the check should be remitted to: U.S. Environmental Protection Agency Fines and Penalties Cincinnati Finance Center P.O. Box 979077 St. Louis, MO 63197-9000 Page 5 of 11 Docket No. CAA-06-2013-3339 For overnight mail (non-U.S. Postal Service), the check should be remitted to: U.S. Bank Government Lockbox 979077 US EPA Fines and Penalties 1005 Convention Plaza SL-MO-C2-GL St. Louis, MO 63101 Phone No. (314) 418-1028 For wire transfer, the payment should be remitted to: Federal Reserve Bank of New York ABA: 021030004 Account No. 68010727 SWIFT address =FRNYUS33 33 Liberty Street New York, NY 10045 Field Tag 4200 of the Fedwire message should read "D 68010727 Environmental Protection Agency" PLEASE NOTE: Docket number CAA-06-2013-3339 shall be clearly typed on the check to ensure proper credit. If payment is made by check, the check shall also be accompanied by a transmittal letter and shall reference the Respondent's name and address, the case name, and the docket number of this CAFO. If payment is made by wire service, the wire transfer instructions shall reference the Respondent's name and address, the case name, and the docket number of this CAFO. The Respondent shall also send a simultaneous notice of such payment, including a copy of the check and transmittal letter or wire transfer instructions to the following: Samuel Tates Chief, Surveillance Section (6EN-AS) Compliance Assurance and Enforcement Division U.S. EPA Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 Page 6 of 11 Docket No. CAA-06-2013-3339 Lorena Vaughn Regional Hearing Clerk (6RC-D) U.S. EPA, Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 Respondent's adherence to these instructions will ensure that proper credit is given when penalties are received in the Region. 36. Respondent agrees not to claim or attempt to claim a federal income tax deduction or credit covering all or any part of the civil penalty paid to the United States Treasurer. 37. Pursuant to 31 U.S.C. 3717 and 40 C.F.R. 13.11, unless otherwise prohibited by law, EPA will assess interest and late payment penalties on outstanding debts owed to the United States and a charge to cover the costs of processing and handling a delinquent claim. Interest on the civil penalty assessed in this CAFO will begin to accrue thirty (30) days after the effective date of the CAFO and will be recovered by EPA on any amount of the civil penalty that is not paid by the due date. Interest will be assessed at the rate of the United States Treasury tax and loan rate in accordance with 40 C.F.R. 13.ll(a). Moreover, the costs of the Agency's administrative handling of overdue debts will be charged and assessed monthly throughout the period the debt is overdue. See 40 C.F.R. 13.ll(b). 38. EPA will also assess a $15.00 administrative handling charge for administrative costs on unpaid penalties for the first thirty (30) day period after the payment is due and an additional $15.00 for each subsequent thilty (30) day period that the penalty remains unpaid. In addition, a penalty charge of up to six percent per year will be assessed monthly on any portion of the debt which remains delinquent more than ninety (90) days. See 40 C.F.R. 13.11 (c). Should a penalty charge on the debt be Page 7 of 11 Docket No. CAA-06-2013-3339 required, it shall accrue from the first day payment is delinquent. See 31 C.F.R. 901.9(d). Other penalties for failure to make a payment may also apply. B. PARTIES BOUND 39. The provisions of this CAFO shall apply to and be binding upon the patties to this action, their officers, directors, agents, employees, successors, and assigns. The undersigned representative of each party to this CAFO certifies that he or she is fully authorized by the party whom he or she represents to enter into the terms and conditions of this CAFO and to execute and to legally bind that party to it. C. RETENTION OF ENFORCEMENT RIGHTS 40. EPA does not waive any rights or remedies available to EPA for any other violations by the Respondent of Federal or State laws, regulations, or permitting conditions. 41. Nothing in this CAFO shall relieve the Respondent of the duty to comply with all applicable provisions of section 112(r) of the CAA, 42 U.S.C. 7412(r), and 40 C.F.R. Part 68. 42. Nothing in this CAFO shall limit the power and authority of EPA or the United States to take, direct, or order all actions to protect public health, welfare, or the environment, or prevent, abate, or minimize an actual or threatened release of hazardous substances, pollutants, or contaminants at or from the Facility. Fmthermore, nothing in this CAFO shall be construed to prevent or limit EPA's civil and criminal authorities, or that of other Federal, State, or local agencies or depmtments to obtain penalties or injunctive relief under other Federal, State, or local laws or regulations. 43. In any subsequent administrative or judicial proceeding initiated by the Complainant or the United States for injunctive relief, civil penalties, or other appropriate Page 8 of 11 Docket No. CAA-06-2013-3339 relating to the Facility, Respondent shall not assert, and may not maintain, any defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, claim-splitting, or other defenses based upon any contention that the claims raised by the Complainant or the United States in the subsequent proceeding were or should have been brought in the instant case, except with respect to the claims that have been specifically resolved pursuant to this CAFO. D. COSTS 44. Each party shall bear its own costs and attorney's fees. Furthermore, Respondent specifically waives its right to seek reimbursement of its costs and attorney's fees under 5 U.S.C. 504 and 40 C.F.R. Part 17. E. EFFECTIVE DATE 45. This CAFO becomes effective upon filing with the Regional Hearing Clerk. THE UNDERSIGNED PARTIES CONSENT TO THE ENTRY OF THIS CONSENT AGREEMENT AND FINAL ORDER: FOR THE RESPONDENT: Date FOR THE COMPLAINANT: Date Compliance Assurance and Enforcement Division Page 9 of 11 Docket No. CAA-06-2013-3339 FINAL ORDER Pursuant to section 113(d) of the CAA, 42 U.S.C. 7413(d), and the Consolidated Rules of Practice Goveming the Administrative Assessment of Civil Penalties, 40 C.F.R. Part 22, the foregoing Consent Agreement is hereby ratified. This Final Order shall not in any case affect the right of EPA or the United States to pursue appropriate injunctive or other equitable relief or criminal sanctions for any violations of law. This Final Order shall resolve only those causes of action alleged in this CAFO. Nothing in this Final Order shall be construed to waive, extinguish, or otherwise affect Respondent's (or its officers, agents, servants, employees, successors, or assigns) obligation to comply with all applicable federal state, and local statutes and regulations, including the regulations that were the subject of this action. The Respondent is ordered to comply with the terms of settlement as set forth in the Consent Agreement. Pursuant to 40 C.F.R. 22.31 (b), this Final Order shall become effective upon filing with the Regional Hearing Clerk. Date: K( ~A / I 3 Regional Judicial Officer Page 10 of 11 Docket No. CAA-06-2013-3339 CERTIFICATE OF SERVICE I hereby certify that the original and a copy of the foregoing Consent Agreement and Final Order (CAFO) was hand-delivered to the Regional Hearing Clerk, U.S. EPARegion 6, 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202-2733, and that a true and correct copy of the CAFO was placed in the United States Mail, to the following by the method indicated: Mr. Parker Wilson, Esquire Managing Counsel Valero Companies One Valero Way San Antonio, Texas 78249-1616 CERTIFIED MAIL- RETURN RECEIPT REQUESTED: #10f?;?[)C:)()(Y;Y)/frlj{){) / t{J() Date: X0 (=i,C/-aiX5 Page 11 of 11