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Consent Decree, Countrymark Refining and Logistics; Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 1 of 110 PageID #: 59 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF INDIANA EVANSVILLE DIVISION ____________________________________ ) UNITED STATES OF AMERICA ) ) and ) ) STATE OF INDIANA, ) ) Plaintiffs, ) Civil Action No. 3:13-CV-30-RLY-WGH ) v. ) ) COUNTRYMARK REFINING AND ) LOGISTICS, LLC, ) ) Defendant. ) ____________________________________) CONSENT DECREE Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 2 of 110 PageID #: 60 TABLE OF CONTENTS I. JURISDICTION AND VENUE . 5 II. APPLICABILITY AND BINDING EFFECT . 5 III. OBJECTIVES . 7 IV. DEFINITIONS . 8 V. AFFIRMATIVE RELIEF . 13 A. NOx Emissions Reductions from the FCCU . 13 B. SO2 Emissions Reductions from the FCCU . 14 C. NSPS Applicability of the FCCU Catalyst Regenerator . 16 D. NOx Emissions Reductions from Combustion Units . 20 E. SO2 Emissions Reductions from and NSPS Applicability to Heaters and Boilers . 25 F. NSPS Applicability to the Sulfur Recovery Plant . 26 G. Emission Reductions from Flares and Control of Flaring Events . 28 H. Benzene Waste Operations NESHAP Program Enhancements . 29 I. Leak Detection and Repair Program Enhancements . 41 J. Incorporation of Consent Decree Requirements into Federally Enforceable Permits . 52 VI. EMISSION CREDIT GENERATION . 54 VII. SUPPLEMENTAL ENVIRONMENTAL PROJECTS . 56 VIII. REPORTING AND RECORDKEEPING . 59 IX. CIVIL PENALTY . 62 X. STIPULATED PENALTIES . 63 XI. NOTICE . 77 i Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 3 of 110 PageID #: 61 XII. INFORMATION COLLECTION AND RETENTION . 80 XIII. FORCE MAJEURE . 81 XIV. RETENTION OF JURISDICTION/DISPUTE RESOLUTION . 84 XV. EFFECT OF SETTLEMENT . 86 XVI. GENERAL PROVISIONS . 96 XVII. TERMINATION . 100 XVIII. SIGNATORIES . 101 XIX. FINAL JUDGMENT . 101 ii Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 4 of 110 PageID #: 62 TABLE OF APPENDICES A. List of Combustion Units Greater than 40 mmBTU/hr B. Emission Reductions from Flares and Control of Flaring Events Appendices to Appendix B: NUMBER DESCRIPTION Drawings Illustrating Lower, Center, and Upper Steam 1.1 Injection in Various Types of Flare Tips 1.2 General Equations 1.3 Calculating NHVcz-limit and NHVcz for Steam-Assisted Flares EPA’s Policy on Excess Emissions during Malfunctions, 1.4 Startup, and Shutdown 1.5 Intentionally Left Blank Calculating the Unobstructed Cross Sectional Area of Various 1.6 Types of Flare Tips 1.7 Depiction of Gases Associated with Steam-Assisted Flares Outline of Requirements for the Flare Data and Initial 1.8 Monitoring Systems Report List of Compounds a Gas Chromatograph must be Capable of 1.9 Speciating Equipment and Instrumentation Technical Specifications and 1.10 Quality Assurance/Quality Control Requirements Waste Gas Mapping: Level of Detail Needed to Show Main 1.11 Headers and Process Unit Headers 1.12 Representations of Discontinuous Wake Dominated Flow Calculating the Amount of Stipulated Penalties Due for 1.13 Violating Limitations on Flaring when the Stipulated Penalties are Based on Excess VOCs and SO2 Emitted Determining Refinery-Specific and Industry-Average 1.14 Complexity through use of the Nelson Complexity Index Calculating Sulfur Dioxide Emissions from Reportable 1.15 Flaring Incidents 2.1 CountryMark’s Form EIA-820 for Report Year 2013 C. United States Supplemental Environmental Project iii Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 5 of 110 PageID #: 63 CONSENT DECREE WHEREAS Plaintiff the United States of America (“United States”), by the authority of the Attorney General of the United States and through its undersigned counsel, acting at the request and on behalf of the United States Environmental Protection Agency (“EPA”), and Co-Plaintiff the State of Indiana (“Indiana” or “Co-Plaintiff”), on behalf of the Indiana Department of Environmental Management (“IDEM”), have contemporaneously filed a Complaint and lodged this Consent Decree against defendant Countrymark Refining and Logistics, LLC (“CountryMark” or “Defendant”) for alleged environmental violations at CountryMark’s petroleum refinery located in Mount Vernon, Indiana (“Refinery” or “Mt. Vernon Refinery”); WHEREAS the United States alleges, upon information and belief, that CountryMark has violated and/or continues to violate the following statutory and regulatory provisions: a. Prevention of Significant Deterioration (“PSD”) requirements found at Part C of Subchapter I of the Clean Air Act (the “Act” or “CAA”), 42 U.S.C. §§ 7475, and the regulations promulgated thereunder at 40 C.F.R. § 52.21 (the “PSD Rules”) for heaters and boilers and fluid catalytic cracking units for nitrogen oxide (“NOx”) and sulfur dioxide (“SO2”); b. New Source Performance Standards (“NSPS”) found at 40 C.F.R. Part 60, Subparts A and J, under Section 111 of the Act, 42 U.S.C. § 7411 (“Refinery NSPS Regulations”), for fuel gas combustion devices and fluid catalytic cracking unit catalyst regenerators; and c. Leak Detection and Repair (“LDAR”) requirements promulgated pursuant to Sections 111 and 112 of the Act, and found at 40 C.F.R. Part 60 Subparts VV and GGG; 40 C.F.R. Part 61, Subparts J and V; and 40 C.F.R. Part 63, Subparts F, H, and CC (“LDAR Regulations”). WHEREAS the United States also specifically alleges with respect to the Refinery that, upon information and belief, CountryMark has been and/or continues to be in violation of the state implementation plan (“SIP”) and other state rules and regulations adopted by the State of Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 6 of 110 PageID #: 64 Indiana to the extent that such plans, rules, or regulations implement, adopt or incorporate the above-described federal requirements; WHEREAS the United States alleges, upon information and belief, that CountryMark has violated and/or continues to violate at the Refinery’s Main Flare, the following statutory and regulatory provisions: a. The Prevention of Significant Deterioration (“PSD”) requirements found in 42 U.S.C. § 7475 and 40 C.F.R. §§ 52.21(a)(2)(iii) and 52.21(j)– 52.21(r)(5); b. The federally enforceable Minor New Source Review (“Minor NSR”) requirements adopted and implemented by Indiana in its SIP pursuant to 42 U.S.C. § 7410(a)(2)(C) and 40 C.F.R. §§ 51.160–51.164; c. The New Source Performance Standards (“NSPS”) promulgated at 40 C.F.R. Part 60, Subparts A, J, VV, VVa, GGG, and GGGa, pursuant to Section 111 of the CAA, 42 U.S.C. § 7411; d. The National Emission Standards for Hazardous Air Pollutants (“NESHAPs”) promulgated at 40 C.F.R. Part 63, Subparts A, CC, and UUU, pursuant to Section 112 of the CAA, 42 U.S.C. § 7412; e. The requirements of Title V of the CAA found at 42 U.S.C. §§ 7661a(a), 7661b(c), 7661c(a); and 40 C.F.R. §§ 70.1(b), 70.5(a) and (b), 70.6(a) and (c), and 70.7(b); f. The portions of the Title V permits for the Covered Refineries that adopt, incorporate, or implement the provisions cited in a–d and g; g. The federally enforceable SIP for Indiana that incorporates, adopts, and/or implements the federal requirements listed in a and c–d; WHEREAS the State of Indiana has joined in this matter alleging violations of its respective applicable SIP provisions and/or other state rules and regulations incorporating and/or implementing the foregoing federal requirements; WHEREAS CountryMark denies that it has violated the foregoing statutory, regulatory, and SIP provisions and the state and/or local rules and regulations incorporating and 2 Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 7 of 110 PageID #: 65 implementing the foregoing federal requirements, and maintains that it has been and remains in compliance with all applicable statutes, regulations and permits and is not liable for civil penalties and injunctive relief as alleged in the Complaint; WHEREAS the United States is engaged in a federal strategy for achieving cooperative agreements with petroleum refineries in the United States to achieve across-the-board reductions in emissions; WHEREAS CountryMark is a cooperative refinery that processes approximately 27,100 barrels of crude oil per day, is owned by over 100,000 farmers, and serves primarily production agriculture in the states of Indiana, Illinois and Ohio; WHEREAS, prior to the Lodging of this Consent Decree, CountryMark undertook a number of measures intended to reduce air pollution emissions, including but not limited to: (i) developing a written enhanced LDAR program and implementing it; (ii) introducing SO2 reducing catalyst additives into the FCCU; (iii) introducing Low NOx Combustion Promoter into the FCCU; (iv) designing and routing the sulfur tank vent to the Sulfur Recovery Plant’s Tail Gas incinerator; (v) reducing fuel gas H2S content in its fuel gas; (vi) installing a Continuous Opacity Monitoring System (“COMS”) to monitor opacity from the FCCU; (vii) terminating fuel oil combustion in heaters and boilers; and (viii) shutting down a boiler; WHEREAS CountryMark has indicated that it remains committed to proactively addressing environmental issues relating to its operations; WHEREAS CountryMark estimates that, including expenditures it already has made, it will spend a total of approximately $18 million to comply with the requirements of this Consent Decree. 3 Case 3:13-cv-00030-RLY-WGH Document 2-1 Filed 02/28/13 Page 8 of 110 PageID #: 66 WHEREAS, the United States anticipates that the affirmative relief in Section V of this Consent Decree will reduce emissions of the following pollutants by the following amounts, in tons per year (“tpy”): Nitrogen Oxides (“NOx”) 208 Sulfur Dioxide (“SO2”) 777 Volatile Organic Compounds (“VOCs”) 51 Particulate Matter (“PM”) 29 Hazardous Air Pollutants (“HAPs”) 5 The United States also anticipates reductions of carbon monoxide and greenhouse gases.
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