Document rBEBYMG2zxZ9aN1xvegGxBnoa

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1445 ROSS AVENUE, SUITE 1200 DALLAS, TX 75202-2733 february 4, 2013 CERTIFIED MAIL- RETURN RECEIPT REQUESTED: 7007 3020 0002 5102 833 I Ms. Lauren Bird Vice President and General Manager Valero Refining - Meraux LLC Post Offiee Box 696000 San Antonio, Texas 78269~6000 Re: Consent Agreement and Final Order, EPA Docket No. CAA-06-2012-3313 In the Marter of Valero Re.flning .... Meraux LLC Dear Ms. Bird: Enclosed is a copy of the Consent Agreement and Final Order (CAFO) filed with the Regional Hearing Clerk in the matter referenced above. As provided in the CAFO, Valero Refining- Meraux LLC is required to pay the civil penalty of$75,000.00 within thirty (30) days from the effective date of the CAFO. lfyou have any questions regarding this CAFO, please contact Jeffrey Clay, Assistant Regional Counsel, at (214) 665-7297. Encloswe Director Compliance Assurance and EnfOrcement Division R(lcycl(ld/Rooyclable Piin1<>d wllh Vegelablo on Based lnks on 100% Hecyded Paper (40% Postconsumor) lJN!TED STATES F/L Ct:; ENVIRONMENTAL PROTECTION AGEN't!lhl fcJJ -) : . c. , ., REG!ON6 , ,. ' " c:: ': J BEFORE THE ADMINISTRATOR'"' c'''! ',,;' " " Hl_" C,'J VI- .!'.r'. In the Matter of: Valero Refining - Meraux LLC, Respondent EPA Docket No. CAA-06-20 13- 3313 ~--~~--~~~~- CONSENT AGREEMENT AND FINAL ORDER The Director of the Compliance Assurance and Enforcement Division of the United States En.vironmental Protection Agency ("EPA"), Region 6 ("Complainant") and Valero Refining-- Meraux LLC ("Respondent") in the ahove~referenced proceeding, hereby agree to resolve this matter through the issuance of this Consent Agreement and Final Order ("CAFO"). I. PRELIMINARY STATEMENT 1. This proceeding fOr the assessment of civil penalties is brought by EPA pursuant to sections ll3(a)(3) and !13(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.F.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-06-2013-3313 3. Respondent explicitly waives any right to contest the allegations and its right to appeal the proposed Final Order set fotih 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 arc 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. ALU;GATJONS 6. Respondent is a corporation authorized to do business in the State of Louisiana. 7. Respondent owns and operates a petroleum refinery located at 2500 East Saint Bernard Highway in Meraux, Louisiana ("Facility"). 8. The Respondent's facility includes a Crude/Vacuum Unit ("CVU"). The CVU stores, handles, treats or otherwise processes a mixture of flammable substances, including methane, ethane, isopentane, propane, butane, isobutene and pentane. 9. The CVU had an 8 inch piping elbow that failed, leading to the release of hot Vacuum Tower bottoms. 10. The piping elbow used in rhe CVU was constructed of carbon steel, in a service that required chrome alloy construction. The use of carbon steel resulted in material failure leading to the release and fire. Page 2ofll Docket No. CAA-06-20 13-3313 II. An additional factor leading to the release and fire \vas a thinned wall due to high- temperature suliidafion corrosion. Measurements taken after the fire revealed thickness readings ncar the failure point as low as 0.07, well below allowable levels. 12. Valero's post fire investigation concluded that poor quality practices and procedures were utilized when the elbow was installed in 1990 by the previous owner. 13. Another carbon steel elbow was identified in the same piping circuit following the incident. 14. Pursuant to section 112(r)(1) ofthc CAA, 42 U.S.C. 7412(r)(1), an owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to section ll2(r)(3) of the CAA, 42U.S.C. 7412(r)(3), or any other extremely hazardous substance, has a general duty to: (1) identify hazards which may result from accidental relea._.;;es 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. 15. Respondent is a "person" as that term is defined by section 302(c) of the CAA, 42 U.S.C. 7602(e). 16. The Facility is a "stationary source" as that term is deiined by section 112(r)(2)(C) of the CAA, 42\J.S.C. 7412(r)(2)(C). 17. Respondent is the "owner or operator" as those terms are defined by section 112(a)(9) of the CAA, 42 U.S.C. 7412(a)(9), of a stationary source. Page- 3 of 11 Docket No. CAA-06-2013-3313 18. At the Facility, Respondent produces, processes, handles, or stores substances listed in, or pursuant to, CAA 112(r)(3) or other extremely hazardous substances identified as such due to toxicity, reactivity, flammability, volatility, or corrosivity. 19. The release of Vacuum Tower bottoms at the Facility on July 22,2012, constituted an "accidental release" as that term is defined by section 112(r)(2)(A) of the CAA, 42 U.S.C. 7412(r)(2)(A). 20. Respondent failed to design and maintain a safe facility and did not take such necessary steps to prevent accidental releases by not fully utilizing commonly available and accepted practices to ensure safety. 21. Respondent's failure constitutes a violation of the general duty clause in section 112(r)(l) of the CAA, 42 U.S.C. 7412(r)(l). 22. Respondent is therefore subject to the assessment of penalties pursuant to sections 113(a)(3) and 113(d)(l)(H) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)( I)(B), for at least two days of violation of the general duty clause of section 112(r)(l) of the CAA, 42 l:.S.C. 7412(r)(l). III. TERMS OF SETTLEMENT A. CIVIL PENALTY 23. Pursuant to the authority granted in sections 113(a)(3) and 113(d)( I)(B) of the CAA, 42 U.S.C. 7413(a)(3) and 7413(d)(! )(ll), 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 Page 4 of 11 Docket No. Ci\A-06-2013-3313 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 $75,000 fOr two days of violations (the day of the fire and the day before) associated with the violations alleged in this document. 24. Respondent shall pay the assessed penalty within thirty (30) days of the e1fective date of this CAFO. Respondent shall pay the assessed civil penalty by 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 cetiified 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, :110 63197-9000 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 I005 Convention Plaza SL-MO-C2-GL St. Louis, MO 63 I 0 I 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 SWfFT address ~ FRNYUS33 33 Liberty Slreel New York, NY 10045 Field Tag 4200 of the Fedwirc message should read "D 68010727 Environmental Protection Agency" Page 5 of II Docket No. CAA-06-2013-3313 PLEASE NOTE: Docket number CAA-06-2013-3313 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: Chief, Surveillance Section (6EN-AS) Compliance Assurance and Enforcement Division U.S. EPA Region 6 1445 Ross Avenue, Suite 1200 Dallas, "JX 75202-2733 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. 25. 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. 26. Pursuant to 31 U.S.C. 9 3717 and 40 C.F.R. 13.11, unless otherwise prohibited by law, EPA will assess inh::rcst 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 Page 6 of .11 Docket No. CAA-06-2013-3313 begin to accrue thirty (30) days after the effective date of the CAPO 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 L'nited States Treasury tax and loan rate in accordance with 40 C.F.R. 13.11(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. 13.11 (b). 27. EPA will also assess a $15.00 administrative h<mdling 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 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 portion of the debt which remains delinquent more than ninety (90) days. See 40 C.F.R. 13.ll(c). Should a penalty charge on !he debt be required, it shall accrue from the first day payment is delinquent. See 3! C.F.R. 901.9(d). Other penalties for failure to make a payment may also apply. B. PARTIES BOUND 28. The provisions of this CAFO shall apply to and be binding upon the parties 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 parly whom he or she represents to enter into the terms and conditions ofthis CAFO and to execute and to legally bind that party to it. C. RETENTION m El\"FORCEMENT RIGHTS 29. 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 Page 7 ofll Docket No. CAA-06-20 13-3313 conditions. 30. 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. 31. 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. Fm1hennore, 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 departments to obtain penalties or injunctive relief under other Federal, State, or local laws or regulations. 32. In any subsequent administrative or judicial proceeding initiated by the Complainant or the United States for injunctive relief, civil penalties, or other appropriate 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 33. Each party shnll bear its own costs and attorney's fees. Fm1hennore, 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. Page 8 of.lJ Docket No. CAA-06-20 13-3313 E. EFFECTIVE DATE 34. 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: J /3 ol Z-ol) Date ,.... 1 . , f? A o't d_~ { r~ La&en Bird Vice President and General Manager Valero Refining- Meraux LLC FOR THE COMPLAINANT: Date uector Compliance Assurance and Enforcement Division Page 9 ofll Docket No. CAA-06-2013-3313 FINAL ORDER Pursuant to section ll3(d) of the CAA, 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 otherwise affect Respondent's (or its oflicers, 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. 22.3l(b), this Final Order shall become effective upon filing with the Regional Hearing Clerk. Date: .2_ - ') I j cPatr~ick R..ank...i.n.....~~cl3===-------' Regional Judicial Officer Page 10 of 11 Docket No. CAA-06-2013-3313 CERTTrTCATE OF SERVICE I hereby ce11ify 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: CERTTFIED MAIL - RETURN RECEIPT REQUESTED: # 7(!!) 7 Jj,;J (J/'.?5/!!JX} J/ ?cl /~71 ;, ' ' ' .-; i ~ ~.:),. d/ cUt(! U.S. EPA, Region 6 Dallas, Texas Pngc 11 of 11