As we reported last year, when inflation rises so do the penalty rates for environmental violations (Clean Air Act, Clean Water Act, Resource Conservation and Recovery Act, etc…). These adjustments are regulated by the Federal Civil Penalties and Inflation Reduction Act.
Future penalties aside, here is our occasional look at some recent environmental enforcement actions.
Release Not Reported Immediately – $229,707
The United States Environmental Protection Agency (EPA) and Leprino Foods Company entered into a Consent Agreement (CA) addressing alleged violations of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Emergency Planning and Community Right to Know Act (EPCRA), and the Clean Air Act – 112r (CAA).
According to a blog by Mitchell Williams, the EPA determined that Leprino notified the National Response Center, but it was 59 minutes after the start of a release of 109 pounds of ammonia. This was a violation of section 103 of CERCLA. There were a total of 13 counts listed in the Corrective Action.
Among the listed counts were the following: Failure to Immediately Report Ammonia Release to the National Response Center, Failure to Immediately Report the Ammonia Release to the California Office of Emergency Services, Failure to Document the Alternative Release Scenario, and Failure to Maintain Records that Ammonia Refrigeration System Operators Understood Trainings on Standard Operating Procedures.
A civil penalty of $229,707 was assessed.
This is yet another reminder that environmental compliance issues can be technical and administrative in nature.
Record-Setting Fine in Colorado – $13 Million
An enforcement action in Colorado for violations of air quality regulations was said to be a record for the state of Colorado.
The Colorado Department of Public Health and Environment stated,
“The Colorado Department of Public Health and Environment is announcing the following actions involving Suncor refinery in Commerce City:
- Suncor must pay at least $10.5 million toward penalties and projects as a result of air pollution violations from July 2019 through June 2021. This action holds Suncor accountable for past violations and requires the refinery to take steps to prevent future violations.
- In a separate action, the department today ensured more data and transparency in Suncor’s air pollution monitoring around the facility’s fenceline. Suncor must double the number of air pollution monitors compared to the refinery’s original fenceline monitoring plan.”
They also state that the enforcement is the largest that Colorado has ever reached against a single facility for air pollution violations.
Part of the settlement includes approximately $1.3 million that will fund projects to benefit “disproportionately impacted communities through the state’s environmental justice grant program…”
On a federal level, there has been a concerted effort under the Biden Administration to focus on environmental justice.
Energy Companies Fined – $7.4 Million
Two energy companies have agreed to pay $7.4 million to settle claims from a pipeline spill that occurred in 2022. A social media post on X by the EPA states that the spill was approximately 300,000 gallons of crude oil. The spill affected a creek in the state of Oklahoma.
In addition to the civil penalties, the companies, Holly Energy Partners and Osage Pipe Line Company, agreed to complete the cleanup of the area affected by the spill and take additional steps to prevent future spills.
According to The United States Department of Justice (DOJ) EPA, “Holly Energy Partners-Operating L.P. and Osage Pipe Line Company LLC have agreed to pay $7.4 million in Clean Water Act civil penalties and implement corrective measures to settle claims stemming from a pipeline rupture and crude oil spill from the Osage pipeline onto land owned by members of the Sac and Fox Nation in Oklahoma. In addition to payment of the civil penalties, the settlement requires that the two companies complete the cleanup and remediation of the impacted area and take additional steps to prepare for and prevent future spills.”
Continued inflation means the cost of environmental penalties have increased again (Image by Franz Bachinger from Pixabay).
Oil and Gas Company Reaches Settlement – $9.5 Million
Federal and State Agencies settled with oil and natural gas company, Apache a subsidiary of APA Corporation, for violations related to the Clean Air Act (CAA) at several operations.
The civil suit was filed by the EPA and the New Mexico Environment Department (NMED). The suit alleges that Apache failed to comply with federal and state requirements to capture and control air emissions from 23 of its oil and gas production operations in New Mexico and Texas.
According to the DOJ, “Apache Corporation (Apache) has agreed to pay $4 million in civil penalties and undertake projects expected to cost at least $5.5 million to ensure 422 of its oil and gas well pads in New Mexico and Texas comply with state and federal clean air regulations and offset past illegal emissions.”
The DOJ states, “This settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change.”
Along with environmental justice, the Biden Administration has continued to focus regulations and enforcement on climate-related issues.
Details regarding the inflation-adjusted fines for 2024, mentioned in the opening paragraph, are provided in the Federal Register notice, “Civil Monetary Penalty Inflation Adjustment.”
If you need assistance with an environmental issue, contact us at info@dragun.com or 248-932-0228.
Dragun Corporation does not use artificial intelligence in drafting our blogs or any other material.
Alan Hahn drafted this blog. Alan has an undergraduate degree in Environmental Studies and completed a graduate program in Environmental Management. He has worked in environmental management for 45 years. He has written hundreds of blogs and articles. His published work includes Michigan Lawyers Weekly, Detroiter, Michigan Forward, GreenStone Partners, Manure Manager Magazine, Progressive Dairy, and HazMat Magazine.
Jeffrey Bolin, M.S., reviewed the blog. Jeff is a partner and senior scientist at Dragun Corporation. He is a published author, frequent speaker, and expert witness. His expertise in environmental due diligence, PFAS, vapor intrusion, and site assessments has led to projects in the US, Canada, and overseas. See Jeff’s Bio.
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