EPA files $4.2-million settlement for fire, explosion at former US refinery
The EPA found that Philadelphia Energy Solutions failed to identify hazards posed by a corroded pipe.
The U.S. government has reached a $4.2 million settlement with Philadelphia Energy Solutions Refining and Marketing LLC (PES) to resolve penalties under the Clean Air Act (CAA) related to the fire and explosion that occurred on June 21, 2019, at the company’s former refinery in South Philadelphia.
The incident, which took place at the 335,000 barrels-per-day refining complex, resulted in a temporary shelter-in-place order for nearby residents and left five refinery workers injured (OGJ Online, June 21, 2019). A month after the event, PES and its related entities sought Chapter 11 bankruptcy protection (OGJ Online, July 22, 2019).
According to the Environmental Protection Agency (EPA), this settlement—filed in U.S. Bankruptcy Court—represents the largest penalty ever imposed under Section 112(r) of the Clean Air Act for a single event. This section mandates that owners and operators of regulated facilities handle “extremely hazardous substances” in a safe manner, as noted in an EPA press release.
The agency accuses PES of violating regulations that require facilities to assess and identify hazards associated with regulated substances, implement an accident-prevention plan to minimize the risk of accidental releases, and establish an emergency response strategy.
EPA specifically claims that PES failed to ensure that its refinery operations, especially those involving the hydrofluoric acid unit, were designed, constructed, and run in accordance with widely recognized and accepted engineering practices. The settlement represents the final agreement between EPA and PES, according to the agency.
While PES has not admitted liability, the proposed settlement includes a 30-day public comment period before final approval by the court. If granted approval, the payment will be part of a court-endorsed bankruptcy reorganization plan.
The refinery no longer exists or operates at the South Philadelphia site, as the current owners plan to develop the property into a warehouse distribution center.
This settlement follows three prior agreements between EPA and PES in 2020. These included issues related to the CAA’s Renewable Fuel Standards, compliance with a previous CAA consent decree, and the recovery of EPA’s costs related to the explosion and fire at the refinery.
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