Document Yr8zK5w7qxkQ3RBMmnVvwQ6gk

UNITED STATES ENVIRONMENTAL PROTECfiON AGENCY Region6 1445 Ross Avenue, Suite 1200 Dallas, Texas 75202 - 2733 JUN 2 3 20i5 CERTIFIED MAIL- RETURN RECEIPT REQUESTED: 7014 0150 0000 2454 9888 Forrest Lauher Vice President Refining Western Refining Inc. 212 N. Clark Street El Paso, TX 79905 Re: Administrative Compliance Order on Consent In the Matter of Western Refining Company, L. P., Docket No. CAA-06-2015-3327 Dear Mr. Lauher: Enclosed is the fully executed Administrative Compliance Order on Consent (ACO) in the matter referenced above for Western Refining Company, L. P. As provided in the ACO, Western Refining Company, L. P. will have 6 months from the effective date of the ACO to preform internal inspections on the fom pressure vessels identified as overdue for internal inspections during the EPA inspection on the week of February 2, 2015. If you have any questions regarding this ACO, please contact Jeffrey Clay, Assistant Regional Counsel, at (214) 665-7297. Sincerely, ~ Compliance Assurance and Enforcement Division Enclosure r: I I ~- ,. ~ l ' ; .. ; ' 2(!1:; ~-l! :: - ! lJNITED STATES ENVIRONMENTAL PROTECTION AGENCY RI<:<;H>N 6 r: ,' r,. "J.) ' ' ' -'I '' In the Matter of: Western Refining Company, L.P., Ell'aso, Texas Administrative Compliance Order on Consent ])ocl<et Numb(,r: CAA-06-2015-3327 Respondent. ADMINISTRATIVE COMPLIANCE OllDI<:H ON CONSENT A. I'RELIMINARY STATEMENT l. This Administrative Compliance Order on Consent ("Order") is issued under the authority vested in the Administrator oflhc U.S. Environmental Protection Agency ("EPA") by Section l l 3(a) of the Clean Air Act ("CAA" or the "Act"), 42 U.S.C. 7413(a)(3) and (4). 2. On the EPA's behalf~ the Director of the Region6 Compliance Assurance and Enfi.lrcement Division is delegated the authority to issue this Order under Section l 13(a) of the Act. 3. Respondent is a corporation doing business in the state of Texas. Respondent is a "person" as defined in Section 302(e) of the Act, 42 U.S.C. 7602(e). 4. Respondent signs this Administrative Compliance Order on Consent and agrees to the terms and conditions contained herein. 5. A copy of this Order will be provided to the Texas Commission f(n Environmental Quality. B. STATUTORY AND REGULATORY BACKGROlJND 6. The primary purpose of the CAA is to "protect and enhance the quality of the Nation's air resources so as to promote the public health and weln1re and the productive capacity of the population." 42 U.S.C. 7401 (b)(l ). 7. The purpose of CAA Section 112(r) is to provide requirements and standards to help prevent and minimize accidental releases of air pollutants: "I! shall be !he objective of the regulations and programs authorized under this subsection to prevent the aceidental release and to minimize the consequences of any such release of any substance listed pursuant to paragraph (3) or any other extremely hazardous substance." 42 U.S.C. 7412(r)(l). 8. CAA Section l 12(r)(7), 42 U.S.C. 7412(r)(7), provides in pertinent part: (A) ln order to prevent accidental releases of regulated substances, the Administrator is authorized to promulgate release prevention, detection, and correction requirements which may include monitoring, record-keeping, reporting, training, vapor recovery, secondary containment, and other design, equipment, work practice, and operational requirements .... (B) (ii) The regulations under this subparagraph shall require the owner or operator of stationary sources at which a regulated substance is present in more than a threshold quantity to prepare and implement a risk management plan to detect and prevent or minimize accidental releases of such substances from the stationary source, and to provide a prompt emergency response to any such releases in order to protect human health and the environment. Such plan shall provide for compliance with the requirements of this subsection.... (B) (iii) The owner or operator of each stationary source covered by clause (ii) shall register a risk management plan prepared under this subparagraph with the Administrator before the effective date of regulations under clause (i) in such form and manner as the Administrator shall, by rule, require. 9. ln 1994, EPA promulgated the Risk Management Program ("RMP") regulations in accordance with CAA Section 112(r)(7), 42 U.S.C. 7412(r)(7). Sec 40 C.F.R. Part68, Chemical Accident Prevention Provisions. Administrative Compliance Order on Consent In the Matter of West:ern Refining Company, L.P. Page 2 of12 10. Pursuant to CAA Section 112(r)(2)(B), 42 LJ.S.C. 7412(r)(2)(B), a "regulated substance" includes any substance listed by EPA pursuant to CAA Section 112(r)(3). 42 U.S.C. 7412(r)(3). Lists of regulated substances and threshold quantities arc provided in tables located at 40 C.F.R. 68.130. 11. Pursuant to 40 C.F.R. 68.1 0, the owner or operator of a stationary source that has more than a threshold quantity of a regulated substance in a process must comply with the RMP regulations. 12. A "process'' is dc1ined broadly to mean "any activity involving a regulated substance including any usc, storage, manufacturing, handling, or on-site movement of such substances, or combination of these activities" and includes "any group of vessels that arc interconnected, or separate vessels that arc located such that a regulated substance could be involved in a potential release, shall be considered a single process." 40 C.F.R. 68.3. 13. Pursuant to 40 C.F.R. 68.12, the owner or operator of a stationary source with a process subject to the "Program 3" requirements of the RMP regulations must, among other things, comply with the prevention requirements of 40 C.F.R. 68.65 -- 68.87. 14. Pursuant CAA Section I 12(r)(7)(E), 42 U.S.C. 7412(r)(7)(E), it is unlawful J(w any person to operate any stationary source subject to the RMP requirements and regulations in violation of such requirements and regulations. I 5. Pursuant to CAA Section 1I 3(a)(3), 42 U.S.C. 74 I 3(a)(3), whenever the Administrator finds that any person has violated or is in violation of the RMP regulations, the Administrator may issue an order requiring such person to comply with such requirements. Administrative Compliance Order on Consent in the Matter of Western l?efining Company, L.P. Page 3 of 12 C. FINDINGS I6. Respondent is a corporation. I 7. Respondent owns a petroleum refinery located at 6501 rrowbridgc Drive, El Paso, rex as ("Facility"). I8. Respondent's petroleum refinery is subject to the general requirements of 40 C.F.R. Part 68. 19. Additionally, Respondent's petroleum refinery is subject to the specific requirements of "Program 3" of the Part 68 requirements. 20. On February 2, 2015, EPA Region 6's Compliance Assurance and Enforcement Division ("CAED") conducted an inspection at Respondent's Ji1cility. 21. Speciiically, Dave Hensley, a trained and experienced CAED employee who is fully quali11cd to conduct inspections pursuant to the CAA, perJ(mlled a compliance audit at respondent's facility to ascertain Respondent's compliance with applicable Part 68 requirements. 22. The equipment at Respondent's facility includes four process vessels. 23. Pursuant to 40 C.F.R. Section 68.74(d)(3) Respondent is required to inspect and test process equipment. 24. The fi-equency of inspection and testing of process equipment is determined by the manufacturers' recommendations and good engineering practices. 25. The interval of inspection is mandated by American Petroleum Institute Standard 510 ("API 5 ]()''). 26. API 510 states: a. "6 .5.1.1 Unless justiJlcd by a RBl [risk-based Inspection! assessment, the period between internal or on-stream inspections shall not exceed one half the remaining Adrninistrative Compliance Order on Consent In the Matter of Western Refining Company, L.P. Page 4 of 12 life oft he vessel or l 0 years, whichever is less. Whenever the remaining life is Jess than J(mr years, the inspection interval may be the full remaining life: up to a maximum of two years. The interval is established by the inspector or engineer in accordance with the owncr"/uscr's quality assurance system." 27. Western did not usc RBI prior to the February 2, to February 5, 2015, inspection. 28. Four pressure vessels were identified by the inspector as being deficient in meeting the requirements of Part 68 and APl510, including; "T'-87, TK-4052, TK-4055, and "l"K-4054. 29. According to records provided by the Respondent at the time of the inspection, the 1~mr vessels were last inspected on January 7, 2003, January 29, 2004, November 6, 2004, and October 21, 2004, respectively. 30. During the inspection the inspector requested a list of overdue inspections. According to that list provided by Western, the J(mr vessels should have been inspected on or bcl(Jre January 7, 2013, January 29, 2014, November 6, 2014, and October 21, 2014. 31. However, subsequent to the inspection and before entry of this Administrative Order on Consent, Respondent immediately commenced review of: and where appropriate, undertook corrective action fi)l", the API 51 0 inspections and inspection intervals for the f(mr vessels. Those actions included: a. Scheduling of inspections ofTK-4055 and TK-4054; h. Taking r-87 out of service and completing the internal inspection ofT-87 in March 2015; and c. Engaging a third-party consultant to conduct a RBI assessment under API 51 0 of T-87 and TK-4052. That assessment was completed and a report issued on May 6, 2015. The report, which was provided to EPA by Respondent, concluded that inspection interval of longer than l 0 years was appropriate f(lr T-87 and TK -4052. Administrative Compliance Order on Consent In the Matter of Western Refining Cornpany, L.P. Page 5 of 12 32. Accordingly, EPA alleges that TK-4055 and TK-4054 were inspected 3 to 25 months late, at the time of the February 2, 2015, RMP, EPA inspection. D. ORDER 33. Respondent is ordered to conduct the program described in this section of this Order. Respondent is ordered to complete the corrective actions already underway, namely to perform the inspections required by 40 C.F.R. Part 68 and American Petroleum Institute Standard 510 ("API 51 0") on TK-4055 and TK-4054. Respondent will perform these two inspections as expeditiously as practicable but in no event later than six months aflcr the effective date of this Order. 34. Not later than 30 days after each inspection has been completed, Respondent shall notify EPA that the inspection has been completed, of the Jindings of the inspection, and of any actions taken based on those findings. E. OTHER TERMS AND CONDITIONS 35. Respondent admits thejurisdictional allegations contained in this Order. 36. Respondent neither admits nor denies the flndings in Section C (Findings) of this Order. F. GENERAL PROVISIONS 37. Any violation of this Order may result in a civil administrative orjudicial action for an injunction or civil penalties of up to $37,500 per day per violation, or both, as provided in Sections 113(b)(2) and 113(d)(l) of the Act, 42 U.S.C. 7413(b)(2) and 7413(d)(l ), as well as criminal sanctions as provided in Section 113(c) of the Act, 42 U.S.C. 7413(c). The EPA may usc any information submitted under this Order in an administrative, civil judicial, or criminal action, Administrative Cornpliance Order on Consent In the Matter of Western Refining Company, L.P. Page 6 of 12 38. Nothing in this Order shall relieve Respondent of the duty to comply with all applicable provisions of the Act or other kderal, stale or local laws or statutes, nor shall it restrict the EPA's authority to seck compliance with any applicable Jaws or regulations, nor shall it be construed to be a ruling on, or determination of: any issue related to any federal, slate, or local permit. 39. Nothing herein shall be construed to limit the power of the EPA to undertake any action against Respondent or any person in response to conditions that may present an imminent and substantial endangerment to the public health, welfare, or the environment. 40. The provisions of this Order shall apply to and be binding upon Respondent and its of'ficers, directors, employees, agents, trustees, servants, authorized representatives, successors, and assigns. From the Effective Dale of this Order until the Termination Dale as set out in paragraph 54 below, Respondent must give wri!len notice and a copy of this Order to any successors in interest prior to any transfer of ownership or control of any portion of or interest in the El Paso facility. Simultaneously with such notice, Respondent shall provide writlen notice of such transfer, assignment, or delegation to the EPA. In the event of any such transfer, assignment, or delegation, Respondent shall not be released flom the obligations or liabilities of this Order unless the EPA has provided wriHen approval orthe release of said obligations or liabilities. 41. Unless this Order slates otherwise, whenever, under the terms of this Order, written notice or other document is required to be given, it shall be directed to the individuals specified at the addresses below unless those individuals or their successors give notice of a change of address to the other party in writing: Mr. Dave Hensley EPA Region 6 Administrative Compliance Order on Consent In t.he Matter of Western Refining Company, L.P. Page 7 ofl2 Mail Code: 6RC-EW 1445 Ross J\ venue Dallas, Texas 75202 Mr. Hensley may also be reached at }IJ;n~l~y.davc@J2'UlQ~. J\11 notices and submissions shall be considered eiTcctivc upon receipt 42. To the extent this Order requires Respondent to submit any infcmnation to the EPJ\, Respondent may assert a business coniidentiality claim covering part or all of that inf(wmation, but only to the extent and only in the manner described in 40 C.F.R. Part 2, Subpart B. rhe EPJ\ will disclose inl(m11ation submitted under a confidentiality claim only as provided in 40 C.F.R. Part 2, Subpart B. If Respondent does not assert a confidentiality claim, the EPJ\ may make the submitted information available to the public without further notice to Respondent. 43. Each undersigned representative of the Pm1ies certifies that he or she is authorized to enter into the terms and conditions of this Order to execute and bind legally the Parties to this document 44. EPJ\ reserves all of its statutory and regulatory powers, authorities, rights, and remedies, both legal and equitable, which may pertain to the Respondent's failure to comply with any of the requirements of this Order. This Order shall not be construed as a covenant not to sue, release, waiver, or limitation of any rights, remedies, powers, and/or authorities, civil or criminal, which EPJ\ has under any statutory, regulatory, or common law authority of the United States. 45. This Order does not resolve any civil or criminal claims of the United States f(n the violations alleged in this Order, nor does it limit the rights of the United States to obtain penalties or injunctive relief under the CJ\J\ or other applicable federal law or regulation. Administrative Cornpliance Order on Consent; In the MaUer of Western Refining Cornpany, L.P. Page !l of 12 46. This Order is not intended to be, nor shall il be cons!rucd to be, a pcrmi!. Fur! her, the Par!ics acknowledge and agree that EPA's approval oflhis Order docs no! cons!i!utc a warranty or representation !hal requirements provided hereunder will mcc!the requiremcn!s of Scc!ion 112(r) of the CAA. Compliance by the Respond en! wi!h the !cnns oflhis Order shall no! relieve !he Respond en! of its obligations !o comply with the CAA or any other applicable local, state, or Federal laws and regulations. 47. Nothing herein shalllimil the power and authority of EPA or the United Stales !o take, direct, or order all ac!ions necessary to pro!ect public heal!h, welfare, or !he environment or to prevent, abate, or minimize an ac!ual or !hrca!cncd release of a regulated substance, extremely hazardous substance, or other substance on, at, or hom the Facility. This Order shall no! cons!itu!e or be construed as a release of any liabili!y !ha!!he Respondent or any other person has under the CAA or any other law. 48. Nothing herein shall be cons!rued as an extension of time for complying with any statutory or regulatory rcquiremen! under the CAA or any other law. 49. In any subscqucn! administrative or judicial proceeding initiated by EPA or the United States i(n injunctive or other appropria!e reliefre]a!ing !o !he Facili!y, the Rcsponden! shall not asscr!, and may not maintain, any defense or claim based upon !he principles of waiver, res judicata, collateral estoppeL issue preclusion, claim-splitting, or other defenses based upon any contention that the claims raised by EPA or the United Stales in !he subsequent proceeding were or should have been raised in !he present mat!er. 50. Neither EPA, nor the Uni!cd States, by issuance of this Order, assumes any liability for any acls or omissions by Respondent or ils employees, agents, con!rac!ors, or consul!an!s engaged to carry ou! any ac!ion or activity pursuan!!o this Order. Nor shall EPA or the Administrative Compliance Order on Consent: In the Matter of West:ern Refining Company, L.P. Page 9 of12 United States be held as a party to any contract entered into by Respondent or by its employees, agents, contractors, or consultants. G. J<:FFECTIVE DATE AND Ol'l'ORTliNITY FOR A CON FERENC!~ 51. Pursuant to Section 113(a)(4) of the Act, an Order docs not take e1Tcct until the person to whom it has been issued has had an opportunity to confer with the EPA concerning the alleged violations. By signing this Order, Respondent acknowledges and agrees that it has been provided an opportunity to confer with the EPA prior to issuance of this Order. Accordingly, this Order will take effect immediately upon signature by the latter of Respondent or the EPA. H. JtJI)ICIAL IU<:VIEW 52. Respondent waives any and all remedies, claims f(Jr relief and otherwise available rights to judicial or administrative review that Respondent may have with respect to any issue of Cact or law set forth in this Order, including any right ofjudicial review under Section 307(b)(l) of the CAA, 42 U.S.C. 7607(b)(l). I. TERMINATION 53. This Order shall terminate on the earlier of the f(Jllowing (the "'I'ermination Date") at which point Respondent shall operate in compliance with the Act: a. One year after the Effective Date of this Order; or b. The cfTcctivc date of any determination by the EPA that Respondent has achieved compliance with all terms of this Order; or c. Immediately upon receipt by Respondent of notice fiom the EPA finding that an imminent and substantial endangerment. to public health, welfare, or the environment has occurred. Administrat:ive Compliance Order on Consent In the Mat:terofWest.em Refining Cornpany, L.P. Page 10 of12 For United States Environmental Protection Agency, Region 6: JUN 2 3 2015 Date: - - - - - - - ~ Director Compli ance Assurance and Enforcement Division U.S. EPA, Region 6 1445 Ross Avenue Dallas, Texas 75202 For Respondent: ~( Date Printed Name: Fo rresl If La._u. ~er Title: Address: CERTIFICATE OF SERVICE Administrative Complian ce Order on Consent In th e Matter of Western Refining Co mpany, L.P. Page 11 of12 I certify that the forego ing "Administrative Compliance Order on Consen t" in the Matter of Western Refin ing, Inc., Order CAA-06-20 15-3327, was fil ed and copies of the same were mai led to the parties as indicated below. CERTIFIED MAIL, RETURN RECEIPT REQUESTED: # 70/t/-fJ!!fi't'tJttci'if/f.fJ' Forrest LauJ1er Vice Pres ident Refin ing Western Refining Company, L. P. 2 12 N. C lark Street El Paso, TX 79905 C T Corporation System 350 N. St. Paul St. Ste. 2900 Da ll as, TX, USA 7520 1-4234 Date Administrative Compliance Order on Co nsent In the Ma tter of Western Refining Company, L.P. Page 12 of12