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Unocal Agrees to Multi-Million Dollar Settlement
Release Date: 4/2/1998
Contact Information: Ray Nye
[email protected]
(206) 553-4226
March 31, 1998 - - - - - - - 98-14
FOR IMMEDIATE RELEASE
Unocal, the California-based petroleum and chemical manufacturer, today agreed to an environmental settlement valued at more than $7 million to resolve allegations that its Kenai, Alaska, industrial ammonia and urea fertilizer production plant violated the federal Clean Air Act by emitting illegal levels of air pollutants, including particulates, carbon dioxide and other combustibles.
Under the terms of the settlement, Unocal will pay a $550,00 civil penalty and spend more than $6.6 million on Supplemental Environmental Projects.
Chuck Clarke, EPA's Northwest regional administrator in Seattle, said the Supplemental Environmental Projects are designed to bring clean-air benefits that go beyond what is otherwise required by the Clean Air Act or by Alaska regulations.
Clarke said that Unocal has agreed to undertake measures that will increase the plant's ability to control air emissions and monitor the combustion efficiency of its equipment, and to install a flare and scrubber system that will significantly decrease ammonia emissions.
"Unocal will also reduce the likelihood of sudden, catastrophic releases of ammonia into the air over the Kenai Peninsula," Clarke said.
In October 1977 the Justice Department filed a lawsuit in U.S. District Court in Anchorage on behalf of the U.S. Environmental Protection Agency. In the lawsuit, the Department alleged Unocal violated Alaska's federally-approved State Implementation Plan by releasing air pollutants in concentrations above what is allowed by the plant's Clean Air Act permits.
The State Implementation Plan, developed by Alaska and approved by EPA, is designed to ensure the State can meet federal air quality standards. The government's lawsuit also alleged that Unocal violated the Clean Air Act's Prevention of Significant Deterioration program, modifying its urea production facility without first obtaining proper permits or installing the best available pollution controls.
"This settlement should go a long way toward helping make sure Alaskans are breathing air that's safe and clean," said Lois Schiffer, Assistant Attorney General in charge of the Justice Department's Environment and Natural Resources Division. "The Justice Department is committed to ensuring that no company has an unfair advantage by failing to make the investments necessary to control pollution as required by law."
The settlement awaits court approval. Once approved, the Government's lawsuit will be resolved.
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