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"Settlement Agreement, Motiva Enterprises LLC + Equilon

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u.s. ENVIRONMENTAL PROTECTION AGENCY WASHINGTON, D.C. ) In the Matter of: ) AED/MSEB No. 7166 ) ) Motiva Enterprises LLC and ) SETTLEMENT AGREEMENT Equilon Enterprises LLC, ) d/b/a Shell Oil Products US; ) ) Respondents. ) THIS AGREEMENT is made and entered into by and between the United States Environmental Protection Agency (hereinafter "EPA") and Motiva Enterprises LLC and Equilon Enterprises LLC, d/b/a Shell Oil Products US (hereinafter collectively referred to as "Respondents"). PRELIMINARY STATEMENT 1. EPA alleges that Respondents, on numerous occasions, violated Section 211 of the Clean Air Act ("CAA"), 42 U.S.C. § 7545 and regulations promulgated thereunder at 40 C.F.R. Part 80. By entering into this Settlement Agreement, the Respondents neither admit nor deny that they are in any way responsible for the alleged violations or that any violations have occurred. 2. The parties, desiring to settle and resolve this matter, in consideration of the mutual covenants and agreements contained herein, which consideration is acknowledged by the parties to be adequate, agree as set forth herein. 3. The parties agree that the settlement of this matter is in the public interest and that this Settlement Agreement is the most appropriate means of resolving the matter. Page 1 -- n- DEFINITIONS 4. Unless specifically defined in this paragraph or elsewhere in this Settlement Agreement, terms used herein shall have the meanings currently set forth in Sections 211, 216, and 302 ofthe CAA, 42 U.S.C. §§ 7545, 7550 and 7602 and in 40 C.F.R. § 80.2. a. "Act" or "CAA" means the Clean Air Act, as amended, 42 U.S.C. §§ 7401 et seq. b. "Branded retail outlet" means a retail outlet where the corporate, trade, or brand name of Respondents or any of their marketing subsidiaries appears on the pump stand or is displayed at the retail outlet. c. "Control period" means June 1 through September 15 for retail outlets and wholesale purchaser-consumers and May 1 through September 15for all other facilities as defined in 40 C.F.R. §§ 80.27(a)(l) and 80.78(a)(I)(v). d. "Conventional gasoline" means conventional gasoline as defined in 40 C.F.R. § 80.2(ff). e. "Covered area" means covered area as defined in 40 C.F.R. § 80.2(hh). f. "Day" means a calendar day. In computing any period of time under this Settlement Agreement, where the last day would fall on a Saturday, Sunday, or Federal Holiday, the period shall run until the close of business of the next working day. g. "Effective date of the Settlement Agreement" is the date of its execution by EPA. h. "EPA" means the United States Environmental Protection Agency. 1. "Equilon" means Equilon Enterprises LLC, d/b/a Shell Oil Products US, a Delaware limited liability company. J. "Interest" means interest at the rate specified for debts owed to departments or agencies of the United States pursuant to 31 U.S.C. § 3717. k. "Motiva" means Motiva Enterprises LLC, a Delaware limited liability company. 1. "Paragraph" means a portion of this Settlement Agreement identified by a numeral ("subparagraph" by a letter or a numeral in parenthesis). Page 2 m. "Person" means person as defined by Section 302(e) of the CAA, 42 V.S.C. § 7602(e). n. "Refiner" means refiner as defined in 40 C.F.R. § 80.2(i). o. "Refinery" means refinery as defined in 40 C.F.R. § 80.2(h). p. "Reformulated gasoline" means reformulated gasoline as defined in 40 C.F.R. § 80.2(ee). q. "Retail outlet" means retail outlet as defined in 40 C.F.R. § 80.20). r. "Settlement Agreement" means this Settlement Agreement, induding the Attachments identified herein. s. The "subject matter of this Settlement Agreement" or the "scope of this Settlement Agreement" means the alleged violations of Section 211 ofthe CAA, 42 V.S.C. § 7545 and of 40 C.F.R. Part 80 as is set forth in this Settlement Agreement. t. An Equilon or Motiva "wholesaler" means a person or entity marketing Shell-branded gasoline pursuant to a wholesale marketer agreement with Equilon or Motiva. STIPVLAnONS 5. The parties stipulate and agree to the following matters. It is further agreed that these stipulations are applicable to this Settlement Agreement and any proceeding arising out of this Settlement Agreement or the subject matter of this Settlement Agreement. a. Respondents are each a person as defined by Section 302(e) of the CAA, 42 V.S.C. § 7602(e). b. Respondents are each a "refiner" as defined in 40 C.F.R. § 80.2(i). c. Respondents are each a "distributor" as defmed in 40 C.F.R. § 80.2(1). d. Alleged Violations of VOC Requirements Found at Branded Retail Outlets. EPA alleges that on the nineteen occasions set forth in Attachment A, Violations of VOC Requirements Found at Branded Retail Outlets, constituting nineteen separate alleged violations of 40 C.F.R. § 80.78(a)(1)(v)(C) and Section 211(k) ofthe CAA, 42 U.S.C. § 7545(k), with respect to gasoline contained in a storage tank at a branded retail outlet (which retail outlet was owned, leased, operated, controlled or supervised by a refiner, importer, oxygenate blender, Page 3 carrier, distributor, reseller, retailer, or wholesale purchaser-consumer), Respondents manufactured and sold or distributed, offered for sale or distribution, dispensed, supplied, offered for supply, stored, transported, or caused the transportation of gasoline subject to complex model standards, represented as reformulated and intended for use in a covered area, which had a VOC emissions reduction percentage which was not greater than or equal to the applicable minimum percentage specified in 40 C.F.R. § 80041. e. EPA alleges that Respondents, as refiners whose corporate, trade, or brand name, or whose marketing subsidiary's corporate, trade, or brand name, appeared at the facility where each of the nineteen alleged violations was found, are liable for each ofthe nineteen separate alleged violations of 40 C.F.R. § 80.78(a)(I)(v)(C) set forth in Subparagraph 5(d), pursuant to 40 C.F.R. § 80.79(a)(2). f. Alleged Violations of Reid Vapor Pressure ("RVP") Requirements at Branded Outlets. EPA alleges that on the three occasions set forth in Attachment B, Violations ofRVP Requirements, constituting three separate alleged violations of 40 C.F.R. § 80.27(a)(2) and Section 211(c) ofthe CAA, 42 V.S.C. § 7545(c), with respect to gasoline at a branded retail outlet, Equilon sold, offered for sale, dispensed, supplied, offered for supply, transported or introduced into commerce gasoline whose RVP exceeded the applicable standard of9.0 psi. g. EPA alleges that Equilon, as a refiner whose corporate, trade, or brand name, or whose marketing subsidiary's corporate, trade, or brand name, appeared at each of the three retail outlets where the alleged violations were found, is liable for each of the three separate alleged violations of 40 C.F.R. § 80.27(a)(2) set forth in Subparagraph 5(t), pursuant to 40 C.F.R. § 80.28(e)(4). h. Alleged Violation ofVOC Requirements Found at Bridgeport. Connecticut Motiva Terminal. EPA alleges that on or about September 15, 1999, in violation of 40 C.F.R. § 80.78(a)(I)(v)(C) and Section 211(k) of the CAA, 42 V.S.C. § 7545(k), with respect to gasoline contained in a storage tank, Tank 14, at the Motiva Bridgeport terminal located in Bridgeport, Connecticut (which terminal was owned, leased, operated, controlled or supervised by a refiner, importer, oxygenate blender, carrier, distributor, reseller, retailer, or wholesale purchaser- consumer), Motiva manufactured and sold or distributed, offered for sale or distribution, Page 4 dispensed, supplied, offered for supply, stored, transported, or caused the transportation of premium gasoline subject to complex model standards, represented as reformulated and intended for use in a covered area, which had a VOC emissions reduction percentage which was not greater than or equal to the applicable minimum percentage specified in 40 C.F.R. § 80.41. 1. EPA alleges that Motiva, as a refiner who owned, leased, operated, controlled or supervised the facility where the alleged violation was found, is liable for the alleged violation of 40 C.F.R. § 80.78(a)(1)(v)(C) set forth in Subparagraph 5(h), pursuant to 40 C.F.R. § 80.79(a)(1). J. Alleged Violations Resulting from Contamination of Product at Motiva's Former Delaware City Refmery and Terminal. EPA alleges that on or about March 7, 2000, in violation of 40 C.F.R. § 80.78(a) and Section 2ll(k) ofthe CAA, 42 V.S.C. § 7545(k), at Motiva's former Delaware City Refinery and Terminal (which terminal was owned, leased, operated, controlled or supervised by a refiner, importer, oxygenate blender, carrier, distributor, reseller, retailer, or wholesale purchaser-consumer), Motiva manufactured and sold or distributed, offered for sale or distribution, dispensed, supplied, offered for supply, stored, transported, or caused the transportation of premium gasoline subject to complex model standards, represented as reformulated and intended for use in a covered area, which failed to comply with the requirements of 40 C.F.R. § 80.41. k. EPA alleges that Motiva, as a refiner who owned, leased, operated, controlled or supervised the facility where the alleged violation was found, is liable for the alleged violation of 40 C.F.R. § 80.78(a) set forth in Subparagraph 50), pursuant to 40 C.F.R. § 80.79(a)(1). 1. Alleged Violations Resulting from Contamination of Product at St. Louis. Missouri. Equilon Terminal. EPA alleges that on or about February 7, 2000, in violation of 40 C.F.R.
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