Document JN1DGLkG8bj6rm0OMxveLjGgB

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Region 6 1445 Ross Avenue, Suite 1200 Dallas, Texas 75202 - 2733 JUL 2 0 ZGiS CERTIFIED MAIL- RETURN RECEIPT REQUESTED: 7014 0150 0000 2454 4722 Mark Salih Environmental Lead, Shreveport Facility UOPLLC 8725 Old Mooringsport Road Shreveport, LA 711 07 Re: In the Matter ojUOP LLC, Docket No. CAA-06-2015-3343 Dear Mr. Salih: Enclosed is a fully executed Consent Agreement and Final Order (CAFO) in the matter referenced above for UOP LLC. As provided in the CAFO, UOP LLC will have thirty (30) days from the effective date of the CAFO to pay the civil penalty of $30,000.00. If you have any questions regarding this CAFO, please contact Jeffrey Clay, Assistant Regional Counsel, at (214) 665-7297. Sincerely, Enclosure Compliance Assurance and Enforcement Division FILED UNITED STATES 7n!IS l"l ?Z 1D,<, I: l? ENVIRONMENTAL PROTECTION AGENCY''' .. REGION6 DALLAS, TEXAS Ll::;:::i/L; ;,;;; __ 1_,;:; Ef',, ::c:.:c;; VI IN THE MATTER OF: UOPLLC Respondent Shreveport, Louisiana ) ) EPA DOCKET NO. CAA-06-2015-3343 ) ) ) ) CONSENT AGREEMENT AND ) FINAL ORDER ) ) CONSENT AGREEMENT AND FINAL ORDER The Director, Compliance Assurance and Enforcement Division, United States Environmental Protection Agency, Region 6 ("EPA") ("Complainant"), and UOP LLC ("Respondent" or "UOP~ in the above referenced action, have agreed to simultaneously commence and resolve this matter, through issuance of this Consent Agreement and Final Order ("CAFO"). I. PRELIMINARY STATEMENT I. This proceeding for the assessment of civil penalties pursuant to Section 113(d) of the Clean Air Act, as amended (CAA or the Act), 42 U.S.C. 7413(d), is simultaneously commenced and concluded by the issuance of this CAFO pursuant to 40 C.F.R. 22. I3(b), 22.18(b)(2), 22.18(b)(3), and 22.34. 2. This CAFO serves as notice pursuant to Section 113(d)(2)(A) of the Act, 42 U.S.C. 7413(d)(2)(A). 3. For purposes of this proceeding, Respondent admits the jurisdictional allegations of this CAFO; however, Respondent neither admits nor denies the specific factual allegations contained in this C:AFO. IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 4. Respondent waives any right to contest the allegations in the CAFO and its right to appeal the Final Order set forth herein, and waives all defenses which have been raised or could have been raised to the claims set forth in the CAFO. 5. Respondent does not waive any rights or defenses which have been raised or could be raised in any state law proceeding. This CAFO may not be used in any federal or state proceeding except proceedings by EPA to enforce this CAFO. 6. Compliance with all the terms and conditions of this CAFO shall only resolve Respondent's liability for Federal civil monetary penalties for the violations and facts alleged in the CAFO. 7. Respondent consents to the issuance of this CAFO, and consents to the assessment and payment of the stated Federal civil monetary penalty in the amount and by the method set out in this CAFO. 8. Respondent shall not assert, and may not maintain, any defense or claim based upon the principles of waiver, res judicata, collateral estoppel, issue preclusion, or claim-splitting for violations not alleged in this CAFO. 9. Except as specifically set forth herein, nothing in this CAFO shall be construed to prevent or limit EPA's civil, injunctive, and criminal authorities, or that of other Federal, state, or local agencies or departments to obtain penalties or injunctive relief under Federal, state, or local laws or regulations. I0. Respondent represents that the undersigned representative is fully authorized by the Party whom he or she represents to enter into the terms and conditions of this CAFO, to execute this CAFO, and to legally bind the Respondent to the terms and conditions of this CAFO. II. Respondent agrees that the provisions of this CAFO shall be binding on its officers, 2 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 directors, employees, agents, servants, authorized representatives, successors, and assigns. II. FINDINGS OF FACT AND CONCLUSIONS OF LAW 12. Respondent is a limited liability company authorized to do business in the state of Louisiana. UOP LLC is incorporated in the State of Delaware. 13. Respondent is a "person" as that term is defined in Section 302(e) of the Act, 42 U.S.C, 7602(e). and within the meaning of Section 113(d) ofthe Act. 42 U.S.C.7413(d). 14. At all times relevant to this CAFO, Respondent owned and operated a chemical manufacturing facility located at 8725 Old Mooringsport Road in Shreveport, LA 71107 ("Facility"). 15. At the Facility, the Respondent produces, processes, stores, and/or handles extremely hazardous substances, including hydrochloric acid (36%). 16. Hydrochloric acid (36%) is an extremely hazardous substance within the meaning of Section ll2(r)(l) of the Act, 42 U.S.C. 7412(r)(l), due to its toxic and corrosive characteristics and propensity to volatilize in ambient air. 17. Reserved. 18. On July 25, 2014, there was a release of hydrochloric acid (36%) at UOP's Shreveport, Louisiana Facility. I9. An operator, while on his normal rounds gauging the Boiler House Sump, noticed an abnormal vapor cloud coming from behind Warehouse #2. The operator immediately notified a Shift Leader, who identified the vapor cloud as hydrochloric acid (36%), and immediately shut down the pumping of hydrochloric acid (36%) from Line 3 through the pipe rack behind the warehouse. 3 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 20. UOP later determined that the release was caused by a breach of a flange connection on a 2" pipe. The pipe consists of two components: a carbon steel outer structure that bears pressure and a Teflon liner that protects the carbon steel outer pipe from the hydrochloric acid traveling through the pipe. 21. The carbon steel pipe had been severely corroded by hydrochloric acid that had permeated the Teflon inner liner. Once the outer carbon steel pipe lost its structural integrity the Tetlon inner shell was unable to contain the pressure and failed at the flange connection. 22. 3,280 pounds of hydrochloric acid (36%) were released during the incident. 23. 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 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. 24. Respondent is a "person" as that term is defined by section 302(e) of the CAA, 42 U.S.C. 7602(e). 25. The Facility is a "stationary source" as that term is defined by section 112(r)(2)(C) of the CAA, 42 U.S.C. 7412(r)(2)(C). 26. Respondent is the "owner or operator" of a stationary source. 27. At the Facility, Respondent produces, processes, handles, or stores substances listed 4 IN THE MATIER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 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. 28. The release of hydrochloric acid (36%) at the Facility on July 25, 2014, constituted an "accidental release" as that term is defined by section I 12(r)(2)(A) of the CAA; 42 U.S.C. 7412(r)(2)(A). 29. Respondent failed to design and maintain a safe facility and did not take such necessary steps to prevent accidental releases by not ensuring the piping was maintained sufficiently to prevent releases. 30. Respondent's failure constitutes a violation of the general duty clause in section ll2(r)(l) of the CAA, 42 U.S.C. 7412(r)(l). 31. Respondent is therefore subject to the assessment of penalties pursuant to sections ll3(a)(3) and ll3(d)(l)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(l)(B), for at least one day of violation of the general duty clause of section II2(r)( I) of the CAA, 42 U.S.C. 7412(r)(l). III. VIOLATION 32. On July 25, 20I4, Respondent failed to maintain piping conveying hydrochloric acid (36/c,) in such a way to prevent pipe failure and a release of an extremely hazardous substance. Respondent failed to design and maintain a safe facility taking such steps as are necessary to prevent releases in violation of I 12(r)(l) of the CAA, 42 U.S.C. 7412(r)(l). IV. CIVIL PENALTY AND TERMS O.F SETTLEMENT 33. For the reasons set forth above, Respondent has agreed to pay a civil penalty which has been determined in accordance with Section 113(b)(2) of the Act, 42 U.S.C. 7413(b)(2), 5 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 which authorizes EPA to assess a civil penalty of up to twenty-five thousand dollars ($25,000) per day for each violation of the CAA. 1 34. Upon consideration of the entire record herein and upon consideration of the size of the business. the economic impact of the penalty on the business, the violator's full compliance history and good faith eff01ts to comply, the duration of the violation, payment by the violator of penalties previously assessed for the same violation, the economic benefit of noncompliance, the seriousness of the violation, specific facts and equities, litigation risks, and other factors as justice may require, the parties agree that $30,000 is an appropriate penalty to resolve this matter. 35. Within thirty (30) days of this fully executed CAFO, Respondent shall pay $30,000 by cashier's check, certified check, or wire transfer made payable to "Treasurer, United States of America, EPA- Region 6." Payment shall be remitted in one of five (5) ways: regular U.S. Postal Service mail, to include certified mail; overnight mail; wire transfer; Automated Clearinghouse for receiving US currency; or On Line Payment. For regular U.S. Postal Service mail, U.S. Postal Service certified mail, or U.S. Postal Service express mail, the check(s) should be remitted to: U.S. Environmental Protection Agency Fines and Penalties Cincinnati Finance Center PO Box 979077 I The Civil Penalty Inflation Adjustment Act ofl990, 28 U.S.C. 2461, as amended by 31 U.S.C. 3701 provides for increases in the statutory penalty provisions ($25,000) cited in the Clean Air Act Stational)' Source Civil Penalty Policy dated October 25, 1991 (CAA Penalty Policy). It provides fi.Jr up to $25,000 per day of violation fOr violations occurring on or before January 30, 1997; up to $27,500 per day for each violation occurring afler January 30, 1997 through March 15, 2004; up to $32,500 per day fix each violation occurring after March 15, 2004 through January 12, 2009; and up to $37,500 per day for each such vio!Mion occurring after Janumy 12,2009. 6 IN THE MATTER OF UOP LLC E"PA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 St. Louis, MO 63197-9000 For overnight mail (non-U.S. Postal Service, e.g. FedEx), the chcck(s) should be remitted to: U.S. Bank Government Lockbox 979077 U.S. EPA Fines & Penalties I005 Convention Plaza SL-MO-C2-GL St. Louis, MO 63101 Contact: Natalie Pearson 314-418-4087 For wire transfer, the payment should be remitted to: Federal Reserve Bank of New York ABA: 021030004 Account Number: 680 I0727 SWIFT address: FRNYUS33 33 Liberty Street New York, NY 10045 Field Tag 4200 of the Fedwire message should read: "D 680 I0727 Environmental Protection Agency" For Automated Clearinghouse (also known as REX or remittance express): U.S. Treasury REX I Cash link ACH Receiver ABA: 051036706 Account Number: 310006, Environmental Protection Agency CTX Format Transaction Code 22- checking Physical location of U.S. Treasury facility: 5700 Rivertech Court Riverdale, MD 20737 Contact- Jesse White (301) 887-6548 For On Line Payment: WWW.PAY.GOV Enter sfo 1.1 in search field Open form and complete required fields. 7 IN THE MATIER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 PLEASE NOTE: The Docket Number CAA-06-20 15-3343 shall be clearly typed on the check to ensure proper credit. The payment shall also be accompanied by a transmittal letter ana shall reference Respondent's name and address, the case name, and docket number of the administrative complaint and CAFO. Respondent's adherence to this request will ensure proper credit is given when penalties are received for the Region. Respondent shall also send a simultaneous notice of such payment, including a copy of the money order, or check, and the transmittal letter to the following: Joaquin "Jake" Medellin Jr. Enforcement Officer (6EN-ASH) Compliance Assurance and Enforcement Division U.S. EPA, Region 6 1445 Ross Avenue Suite 1200 Dallas, Texas 75202-2733 Lorena Vaughn Region 6 Hearing Clerk (6RC-D) U.S. EPA Region 6 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 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 prohihited 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 respective due date. Interest will be assessed at the rate of the United States Treasury tax and Joan 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. ~ee 40 C.F.R. 13.11(b). 38. EPA will also assess a fifteen dollar ($15.00) administrative handling charge for 8 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 administrative costs on unpaid penalties for the first thitty (30) day period after the payment is due and an additional fifteen dollars ($15.00) for each subsequent thirty (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 pmtion of the debt which remains delinquent more than ninety (90) days. See 40 C.F.R. 13.ll(c). Should a penalty charge on the debt be 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. 39. Pursuant to Section 113(d)(5) of the Act, 42 U.S.C. 7413(d)(5), any person who fails to pay on a timely basis, a civil penalty ordered or assessed under this section shall be required to pay, in addition to such penalty and interest, the United States enforcement expenses, including but not limited to, attorney's fees and costs incurred by the United States for collection proceedings, and a quarterly nonpayment penalty for each quarter during which such failure to pay persists. Such nonpayment penalty shall be ten (I 0) percent of the aggregate amount of such person's outstanding penalties and nonpayment penalties accrued as of the beginning of each quarter. 40. This CAFO shall not relieve the Respondent of its obligation to comply with all applicable provisions of federal, state or local law, nor shall it be construed to be a ruling on, or determination of, any issue related to any federal, state or local permit, nor shall it be construed to constitute EPA approval of any equipment or technology installed by the Respondent in connection with any additional settlement terms undertaken pursuant to this CAFO. Nothing in this CAFO shall be construed to prohibit or prevent the federal, state, or local government from developing, implementing, and enforcing more stringent standards through rulemaking, the permit process, or as otherwise authorized or required. 9 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 41. This document constitutes a "Final Order" as that term is defined in the CAA Penalty Policy for the purpose of demonstrating a history of"prior such violations." V. RETENTION OF ENFORCEMENT RIGHTS 42. EPA does not waive any rights or remedies available to EPA for any violations by the Respondent of Federal or State laws, regulations, statutes, or permitting programs. 43. Nothing in this CAFO shall relieve Respondent of the duty to comply with all applicable provisions of the CAA. 44. 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, contaminants, or regulated or other extremely hazardous substances at, on, or from the Respondent's facility. Furthermore, except as specifically set forth herein, nothing in this CAFO shall be construed to prevent or limit EPA's civil, injunctive, or criminal authorities, or that of other Federal, State, or local agencies or departments to obtain penalties or injunctive relief under other Federal, State, or local laws, regulations, or subparts thereof VI. COSTS 45. Each party shall bear its own costs and attorney's fees. 10 IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 IT IS SO AGREED: FOR THE RESPONDENT: FOR THE COMPLAINANT: Date: 1 Zo 1$' irector Compliance Assurance and Enforcement Division I I IN THE MATTER OF UOP LLC EPA DOCKET NUMBER EPA DOCKET NO. CAA-06-2015-3343 FINAL ORDER Pursuant to Section 113(d) of the Clean Air Act (Act), 42 U.S.C. 7413(d), and the Consolidated Rules of Practice Governing 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 othe1wise 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, including the assessment of civil penalties. In accordance with 40 C.F.R. Part 22.3 I(b), this Final Order shall become effective upon filing with the Regional Hearing Clerk. Dated ;/ ), ;2 - .2 (!Jj__.. -~ ,n;;:~~ ucki ~ U.S. EPA, Region 6 12 IN THE MATFE'R OF UOP LLC EPA DOCKETNUMBEREPA DOCKETNO. CAA-06-2015-3343 CERTIFICATE OF SERVICE I hereby certify that on the .2.2Mt/day of~ 2015, the original and one copy of the foregoing Consent Agreement and Final Order ("CAFO") was hand delivered to the Regional Hearing Clerk, U.S. EPA- Region 6, 1445 Ross Avenue, Suite 1200, Dallas, Texas 75202-2733, and a true and correct copy was delivered to the following individual(s) by the method indicated below: CERTIFIED MAIL- RETURN RECEIPT REQUESTED and ELECTRONIC COPY 'lt/Lf c/50 ucc .,xift,-'f iff/.7..2--- Dwayne Johnson, Esquire Partner Kean Miller LLP Post Office Box 3513 Baton Rouge, Louisiana 70821-3513 dwaynejohnson@keanmiller.com On behalf of UOP LLC ~nli~u Paralegal Jk~i~(iu U.S. EPA Region 6, Dalla exas 13