Shell Oil to Spend More Than $115 Million to Cut Air Pollution at Texas Refinery
Let’s talk about Shell Oil notice to spend more than $115 Million to clean air. That’s because industrial air pollution can have a major impact on communities living near refineries and chemical plants. In Deer Park, Texas, federal regulators reached a major Clean Air Act settlement designed to tackle that problem.
In July 2013, the U.S. Environmental Protection Agency and Department of Justice announced an agreement with Shell Oil and affiliated partnerships. Under the settlement, Shell agreed to spend at least $115 million on pollution-control measures at its large refinery and chemical complex in Deer Park, about 15 miles southeast of Houston.
In addition, Shell agreed to spend $2.6 million in a civil penalty to resolve alleged Clean Air Act violations.
The case focused heavily on industrial flares. These systems burn waste gases generated during refinery and chemical operations. However, when facilities send too much waste gas to flares or operate them inefficiently, harmful pollutants can escape into the atmosphere.
Shell Oil to Spend $100 Million for Cleaner Flaring
First, Shell agreed to spend approximately $100 million on technology designed to reduce pollution from industrial flares.
The company also agreed to recover and recycle more waste gas instead of simply burning it. Consequently, some recovered gases could return to the facility as fuel or become useful products.
Furthermore, the settlement placed limits on the amount of waste gas Shell could send to its flares.
Shell also agreed to spend more to install additional instruments and monitoring equipment. These systems would help ensure that gases entering the flares burned efficiently.
In fact, the agreement called for 98% combustion efficiency under applicable operating requirements.
According to the EPA, Shell’s commitment to install flare-gas recovery at the chemical plant represented a first-of-its-kind requirement at the time.
Pollution Reductions Could Be Significant
The environmental benefits were expected to be substantial.
Once fully implemented, EPA estimated that the controls would eliminate more than 4,500 tons of harmful air pollutants every year.
That included approximately:
2,412 tons of sulfur dioxide per year
1,838 tons of volatile organic compounds per year
264 tons of hazardous air pollutants within those VOC reductions
The controls were also expected to cut greenhouse gas emissions by approximately 261,000 tons of carbon dioxide equivalent annually.
Therefore, the settlement addressed both local air-quality concerns and greenhouse gas emissions.
Monitoring Benzene Near the Community
The agreement went beyond refinery equipment.
Shell also agreed to spend approximately $1 million on a state-of-the-art air-monitoring station along the facility’s fence line.
That location mattered because residential neighborhoods and a school were located nearby.
The monitoring system would track benzene concentrations around the facility. Moreover, Shell agreed to make monitoring information available to the public.
Benzene deserves particular attention. The EPA classifies benzene as a known human carcinogen. Long-term exposure can increase the risk of serious health problems, including leukemia.
Therefore, better monitoring offered residents another way to understand what was happening in the air surrounding the industrial complex.
Shell Also Had to Address Tanks and Wastewater
Meanwhile, federal regulators targeted several additional pollution sources.
Shell agreed to significantly modify its wastewater treatment operations to reduce volatile organic compound emissions.
The company also agreed to replace two older tanks and repair another tank. Furthermore, workers would use infrared cameras every two weeks to inspect 15 additional tanks for potential leaks and other problems.
Shell also committed to enhanced monitoring and repair practices at its benzene production unit.
Together, EPA valued these mitigation projects at approximately $15 million to $60 million.
Cutting Diesel Pollution Around Deer Park
The settlement also included a smaller community-focused project.
Shell agreed to spend $200,000 on retrofit technology for older government-owned diesel vehicles operating near the Deer Park complex.
Although smaller than the refinery investments, the project targeted another important source of local air pollution.
Diesel exhaust contributes particulate pollution and other contaminants to communities. Therefore, reducing those emissions could provide additional local air-quality benefits.
Why Industrial Flares Matter
Flares are an important safety and pollution-control tool at refineries. However, their effectiveness depends heavily on how facilities operate them.
A properly operated flare can achieve very high destruction efficiency for volatile organic compounds. Nevertheless, poor combustion conditions can allow more pollutants to escape.
That is why the Shell settlement focused not only on installing equipment but also on controlling how much gas reached the flares, recovering usable waste gases, continuously monitoring operating conditions, and improving combustion performance.
In other words, preventing unnecessary flaring became just as important as improving the flare itself.
A Major Clean Air Act Settlement
The Deer Park refinery was a massive operation. At the time of the settlement, it processed approximately 330,000 barrels of crude oil every day.
Meanwhile, the neighboring chemical plant produced roughly 8,000 tons of petrochemical and chemical products per day, including ethylene, benzene, toluene, xylene, phenol, and acetone.
Both facilities operated around the clock.
Consequently, even relatively small improvements in emissions performance could translate into substantial pollution reductions over an entire year.
The settlement also demonstrated how environmental enforcement can push industrial facilities toward better monitoring, greater efficiency, waste-gas recovery, and stronger pollution controls.
Most importantly, the agreement focused attention on the people living near the refinery fence line. Cleaner industrial operations aren’t simply about meeting regulatory numbers. They are also about reducing the pollution that surrounding communities breathe every day.
Sources
The U.S. Environmental Protection Agency’s Shell Deer Park settlement page provides the detailed pollution-reduction estimates, mitigation requirements, flare controls, and civil penalty.
The EPA’s original July 2013 announcement explains the $115 million pollution-control commitment, $100 million flare investment, benzene monitoring program, and expected emissions reductions.
The U.S. Department of Justice announcement provides additional information about the Clean Air Act allegations and federal settlement.
The consent decree, lodged in the Southern District Court of Texas, is subject to a 30-day public comment period and court approval. The consent decree will be available for viewing at http://www.justice.gov/enrd/Consent_Decrees.html. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
More information about the settlement: www.epa.gov/enforcement/air/cases/sdp.html
More information about EPA’s Air Toxics National Enforcement Initiative:
http://www.epa.gov/compliance/data/planning/initiatives/2011airtoxics.html
Prior enforcement settlements related to industrial flaring:
BP North America:
http://www.epa.gov/compliance/resources/cases/civil/caa/bp-whiting.html
Marathon Petroleum Company:
http://yosemite.epa.gov/opa/admpress.nsf/2467feca60368729852573590040443d/e841a5bbc6dd1082852579d7005b6347!OpenDocument&Highlight=2,Marathon
CountryMark Refining and Logistics:
http://yosemite.epa.gov/opa/admpress.nsf/2467feca60368729852573590040443d/b511e565ba2af7f985257b20005cb737!OpenDocument&Highlight=2,CountryMark
Enforcement Alert: EPA Enforcement Targets Flaring Efficiency Violations (August 2012): http://www.epa.gov/enforcement/air/documents/newsletters/flaringviolations.pdf
FOR IMMEDIATE RELEASE
July 10, 2013
WASHINGTON
