OIL

US refiners pay millions for safety and environment breaches

A US federal judge has sentenced oil refiner and retailer Motiva Enterprises LLC to pay a fine of $10m and to serve a three-year term of probation for serious breaches of safety and environmental laws.

The company pleaded guilty to negligently endangering workers at its former refinery in Delaware City, discharging pollutants into the Delaware River, and negligently releasing sulphuric acid into the air, according to the US Justice Department.

Motiva, an oil refining and retail business owned by Shell Oil Company and Saudi Refining, Inc, refines and markets gasoline to about 9,400 Shell and Texaco-branded service stations.

On 17 July 2001, Tank 393, a 1.5 million litre capacity tank at Motiva's Delaware City Refinery, exploded. The tank contained spent sulphuric acid, a mixture of sulphuric acid, water and hydrocarbons.

The explosion killed one worker, Jeffrey Davis, and injured numerous others. Spent sulphuric acid from the tank farm spilled into the Delaware River, killing thousands of fish and crabs.

Environmental Protection Agency criminal investigators said that Tank 393 had a long history of problems, and that Motiva employees had warned the company on several occasions about problems with the tank.

Meanwhile, BP will pay $US81 million in settlement for lawsuits alleging air quality violations at its Carson refinery in California.

A $US414 million lawsuit was filed by the South Coast Air Quality Air Management District (AQMD) in March 2003 and another $US183.1 million suit in January 2005, the settlement deal covering both complaints. In both cases, the District alleged the Carson refinery had been negligent in releasing pollutants into the local environment, the pollution caused in part by BP’s West Coast Products division allegedly not adequately maintaining, inspecting and repairing equipment at the plant.

“This historic settlement resolves the significant and numerous violations found at the Carson refinery,” said AQMD board chairman William Burke.

BP will pay a $US25 million fine, implement $US20 million in improvements and emissions reductions, $US6 million in past emission fees, and contribute $US30 million over the next decade in funding for community programs aimed at asthma diagnosis and treatment.

“We are pleased to have resolved this dispute and look forward to forging a strong partnership with the AQMD for the future. This settlement allows the parties to put past disputes behind them and work towards a common goal of making BP’s Carson refinery a model citizen in the community,” said president of BP America, Ross Pillari.

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