Chevron Phillips to give $2m, cap emissions in Texas settlement

19 November 2010 00:04  [Source: ICIS news]

HOUSTON (ICIS)--Chevron Phillips Chemical will give $2m (€1.5m) to a local college and cap emissions from “upset events” at its Cedar Bayou petrochemical complex in Texas as part of a legal settlement with environmental groups, the parties said on Thursday.

The agreement stems from a lawsuit filed in 2009 by Environment Texas and the Sierra Club against Chevron Phillips over allegations that the producer violated the US Clean Air Act.

The environmental groups alleged that air emissions at the Cedar Bayou complex since 2003 resulted in the release of more than 1m lb (454 tonnes) of air pollutants, including benzene and 1,3-butadiene. The group cited “upset events” caused by equipment breakdowns, malfunctions and other non-routine occurrences.

Chevron Phillips said it would provide $2m to the Baylor College of Medicine to support education programmes for health care professionals and clinical services to local communities.

The Sierra Club said the agreement calls for Chevron Phillips to reduce emissions from “upset events” to no more than 35,000 lb/year - an 85% reduction from the 500,000 lb of pollutants released during upset events in 2008. Failure to comply with the cap would subject the company to monetary penalties for each pound of pollutants above the cap, the Sierra Club said.

The proposed settlement must be approved by a US district judge.

The Sierra Club said that in 2009, the environmental groups settled a similar Clean Air Act lawsuit against Shell Oil for alleged violations at its Deer Park refinery and chemical plant complex. Shell agreed to reduce upset emissions and paid a $5.8m penalty, the Sierra Club said.

($1 = €0.74)

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By: Brian Ford
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