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STATE OF
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BEFORE THE
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COUNTY OF
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ENVIRONMENTAL
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COMMISSIONER
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Complainant, |
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Case Nos. 2021-27909-A,
2021-28079-A, 2021-28330-A, and 2022-28529-A |
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BP PRODUCTS
NORTH AMERICA INC., |
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Respondent. |
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AGREED ORDER
Complainant and Respondent desire to
settle and compromise this action without hearing or adjudication of any issue
of fact or law, and consent to the entry of the following Findings of Fact and
Order. Pursuant to Indiana Code (“IC”) 13-30-3-3, entry into the terms of this
Agreed Order does not constitute an admission of any violation contained
herein. Respondent’s entry into this Agreed Order shall not constitute a waiver
of any defense, legal or equitable, which Respondent may have in any future
administrative or judicial proceeding, except a proceeding to enforce this
order.
I. FINDINGS OF
FACT
1.
Complainant
is the Commissioner (“Complainant”) of the Indiana Department of Environmental
Management (“IDEM”), a department of the State of Indiana created by IC
13-13-1-1.
2.
Respondent
is BP Products North America Inc. – Whiting Business Unit, (“Respondent”),
which owns and operates the stationary refinery with Plant ID No. 089-00453,
located at 2815 Indianapolis Blvd., in Whiting, Lake County, Indiana (“Site”).
3.
IDEM has jurisdiction over the parties and the
subject matter of this action.
4.
Pursuant to IC 13-30-3-3, IDEM issued a Notice
of Violation (“NOV”) via Electronic Mail to:
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BP Products North America Inc. Attn: Donnie Brown, VP of Refining |
CT Corporation System, Registered
Agent 334 North Senate Avenue |
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2815 Indianapolis Blvd. |
Indianapolis, IN 46204 |
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Whiting, IN 60563 |
wkuslawdept@wolterskluwer.com |
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Donnie.Brown@BP.com |
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5.
During
an investigation conducted by a representative of IDEM, the following violations
were found:
Based on the
Enforcement Action Letter issued to Respondent on June 9, 2021, case number
2021-27909-A contains the following violations:
a.
Pursuant
to Part 70 Permit 089-40517-00453 condition C.5.i, opacity of particulate
emissions from dust handling equipment shall not exceed ten percent (10%).
On January 4, 2021, Respondent exceeded 10% opacity during the removal of
catalyst fines from the electrostatic precipitator (“ESP”) collection bins at
Fluidized Catalytic Cracking Unit (“FCU”) 600, in violation of Part 70 Permit
089-40517-00453 condition C.5.i.
b.
Pursuant
to Part 70 Permit 089-42328-00453 condition H.2.5.5 and 40 CFR 63.1066(b)(1),
Respondent shall notify the Administrator at least 30 days before an inspection
required by §§ 63.1063(d)(1) or (d)(3).
Respondent failed to notify IDEM of Tank TK-3532 being taken out of service on
October 25, 2020 and returned to service on November 14, 2020, in violation of
Part 70 Permit 089-42328-00453 condition H.2.5.5 and 40 CFR 63.1066(b)(1).
c.
Pursuant
to Part 70 Permit 089-42328-00453 condition H.3.2.15 and 40 CFR 63.1574(a)(3),
Respondent must submit a notice of compliance status (“NOCS”) according to §63.9(h)(2)(ii).
The 11 C Pipe Still (11CPS), Vapor Recovery Unit 100 (VRU 100) and the Vapor
Recovery Unit 200 (VRU 200), and 18 other Atmospheric Pressure Relief Devices
(APRDs) were not included in a NOCS since January 30, 2019, in violation of
Part 70 Permit 089-42328-00453 condition H.3.2.15 and 40 CFR 63.1574(a)(3).
d.
Pursuant
to Part 70 Permit 089-40242-00453 conditions D.31.6(a), Respondent shall take
weekly measurements of the total dissolved solids (TDS) of the water in Cooling
Towers Nos. 2 through 8.
Respondent failed to take weekly measurements of the TDS for Cooling Tower No 5
between March 4, 2021 and March 11, 2021, in violation
of Part 70 Permit 089-40242-00453 conditions D.31.6(a).
e.
Pursuant
to Part 70 Permit 089-42328-00453 condition F.3.2.3 and 40 CFR
60.102a(g)(1)(ii), the owner or operator shall not burn in any fuel gas
combustion device any fuel gas that contains H2S in excess of 162 ppmv determined hourly on a 3-hour rolling average basis.
On February 8, 2021, Respondent exceeded 162 ppmv of
H2S at the glycol dehydration unit (“GDU”) fuel gas drum, in
violation of Part 70 Permit 089-42328-00453 condition F.3.2.3 and 40 CFR
60.102a(g)(1)(ii).
f.
Pursuant
to Part 70 Permit 089-42328-00453 condition D.33.1(a), the maximum amount of
steam BP shall accept from Whiting Clean Energy (“WCE”) is 13,200 tons per day.
On February 8, 2021, Respondent imported in excess of
13,200 tons of steam from WCE, in violation of Part 70 Permit 089-42328-00453
condition D.33.1(a).
Based on the
Enforcement Action Letter issued to Respondent on August 26, 2021, case number
2021-28079-A contains the following violations:
g.
Pursuant
to Part 70 Permit 089-40242-00453 conditions D.31.6(a), Respondent shall take
weekly measurements of the total dissolved solids (TDS) of the water in Cooling
Towers Nos. 2 through 8.
Respondent failed to take weekly measurements of the TDS for Cooling Tower No 2
on June 14, 2021, in violation of Part 70 Permit 089-40242-00453 conditions
D.31.6(a).
Based on the
Enforcement Action Letter issued to Respondent on December 13, 2021, case
number 2021-28330-A contains the following violations:
h.
Pursuant
to Part 70 Permit 089-42998-00453 condition G.3.2.4 and subsequent permits with
similar condition and 40 CFR 61.343(d), except as provided in § 61.350 of this
subpart, when a broken seal or gasket or other problem is identified, or when
detectable emissions are measured, first efforts at repair shall be made as
soon as practicable, but not later than 45 calendar days after identification.
On July 28, 2021 Respondent observed accumulated liquid on the roof of Tank
306. This accumulation had been failed
to be addressed since August 8, 2018, in violation of Part 70 Permit 089-42998-00453 condition
G.3.2.4 and subsequent permits with similar condition and 40 CFR 61.343(d).
i.
Pursuant
to Part 70 Permit 089-42998-00453 condition G.3.2.16 and subsequent permits
with similar condition and 40 CFR 61.357(d)(8), the owner or operator shall
submit annually to the Administrator a report that summarizes all inspections
required by §§ 61.342 through 61.354 during which detectable emissions are
measured or a problem (such as a broken seal, gap or other problem) that could
result in benzene emissions is identified, including information about the
repairs or corrective action taken.
Respondent failed to submit annual reports which addressed liquid accumulated
on the roof of Tank 306, in violation of Part 70 Permit 089-42998-00453
condition G.3.2.16 and subsequent permits with similar condition and 40 CFR
61.357(d)(8).
j.
Pursuant
to Part 70 Permit 089-43173-00453 condition D.27.11(c)(1), within sixty (60)
days of performing the seal gap measurements required by section 5(c)(1) of 326
IAC 8-9, the Permittee shall furnish the department with a report that
contains, the date of measurement, the raw data obtained in the measurement,
and the calculations described in section 5(c)(2) and 5(c)(3) of 326 IAC 8-9.
Respondent failed to submit annual seal gap measurement reports within sixty
(60) days of measurements conducted on January 15, 2020 and January 19, 2021,
in violation of Part 70 Permit 089-43173-00453 condition D.27.11(c)(1).
Based on the
Enforcement Action Letter issued to Respondent on March 11, 2022, case number
2021-28529-A contains the following violation:
k.
Pursuant
to Part 70 Permit 089-42998-00453 condition C.19(a), when the results of a
stack test performed in conformance with Section C – Performance Testing, of
this permit exceeded the level specified in any condition of this permit, the
Permittee shall submit a description of its response actions to IDEM, OAQ no
later than seventy-five (75) days after the date of the test.
On November 19, 2021, Respondent submitted the Response Action Plan
seventy-seven days after the failed 4UF F-2 PM10 stack test conducted on
September 3, 2021, in violation of Part 70 Permit 089-42998-00453 condition
C.19(a).
l.
Pursuant
to Part 70 Permit 089-42998-00453 conditions D.31.6(a), Respondent shall take
weekly measurements of the total dissolved solids (TDS) of the water in Cooling
Towers Nos. 2 through 8.
Respondent failed to take weekly measurements of the TDS for Cooling Tower Nos
3 and 4 until November 10, 2021, one day late, in violation of Part 70 Permit
089-42998-00453 conditions D.31.6(a).
m.
Pursuant
to 40 CFR 63.1066(b)(1), to provide the Administrator the opportunity to have
an observer present, the owner or operator of the source shall notify the
Administrator at least 30 days before an inspection required by §§
63.1063(d)(1) or (d)(3).
Respondent failed to notify IDEM in writing 30-days prior to the tank seal
inspection of Tank 3904, in violation of 40 CFR 63.1066(b)(1).
n.
Pursuant
to 40 CFR 63.655(f), each owner or operator of a source subject to this subpart
shall submit a Notification of Compliance Status (“NOCS”) report within 150
days after the compliance dates specified in §63.640(h) with the exception of
Notification of Compliance Status reports submitted to comply with
§63.640(l)(3) and for storage vessels subject to the compliance schedule
specified in §63.640(h)(2).
Respondent failed to submit NOCS reports for tanks TK-3917 after it was
installed in 2015, and tanks TK-402, TK-202, TK-2, and TK-6, in violation of 40
CFR 63.655(f).
o.
Pursuant
to 40 CFR 63.7540(a)(11) and 40 CFR 63.7540(a)(12), boilers or process heaters
are required to have biennial or 5-year tune-ups as dictated by the rule.
Respondent failed to meet the 5-year tune up deadline for the F100 heater and
Coker 2 feed tank heaters and the 2-year deadline for the F300 Heater and F-400
Heater, in violation of 40 CFR 63.7540(a)(11) and 40 CFR 63.7540(a)(12).
p.
Pursuant
to 40 CFR 63.2382(d)(1), if you are required to conduct a performance test,
design evaluation, or other initial compliance demonstration as specified in Table
5, 6, or 7 to this subpart, you must submit a NOCS.
Respondent failed to submit a NOCS for tanks TK-201 and TK-205 after the tanks
were installed as part of the WRMP, in violation of 40 CFR63.2382(d)(1).
6.
Respondent
has purchased and installed modified lids for the FCU 600 ESP dust bins.
7.
Respondent
has hired several subject matter experts to handle specific aspects of the
environmental rules to avoid missing reporting.
Respondent also conducted additional training and mentoring for the new
hires.
8.
Respondent
has put heaters on a 1-year tune up schedule to avoid missing 2- or 5-year
cycles.
9.
Orders
of the Commissioner are subject to administrative review by the Office of
Environmental Adjudication under IC 4-21.5; however, in recognition of the settlement
reached, Respondent acknowledges notice
of this right and waives any right to administrative and judicial review of
this Agreed Order.
II. ORDER
1.
This Agreed Order shall be effective
(“Effective Date”) when it is approved by Complainant or Complainant’s delegate, and has been received by Respondent. This Agreed
Order shall have no force or effect until the Effective Date.
2.
Respondent shall comply with the rules and
conditions listed in the findings of fact above.
3.
All submittals required by this Agreed Order,
unless IDEM notifies the Respondent otherwise in writing, shall be sent to:
Matthew
Chaifetz, Senior Enforcement Case Manager
Office of Air Quality
Indiana
Department of Environmental Management
100 North
Senate Avenue
Indianapolis,
IN 46204-2251
mchaifet@idem.IN.gov
4.
Pursuant to IC 13-30-4-1, Respondent is
assessed and agrees to pay a civil penalty of Fifty-Eight Thousand Five Hundred
Dollars ($58,500.00). Said penalty
amount shall be due and payable to the Environmental Management Special Fund
within thirty (30) days of the Effective Date; the thirtieth day being the “Due
Date.”
5.
Civil penalties are payable by check to the
“Environmental Management Special Fund.” Checks shall include the Case Number
of this action and shall be mailed to:
Indiana
Department of Environmental Management
Accounts
Receivable
IGCN, Room
1340
100 North
Senate Avenue
Indianapolis,
IN 46204
6.
In the event that the monies
due to IDEM pursuant to this Agreed Order are not paid on or before their Due
Date, Respondent shall pay interest on the unpaid balance at the rate
established by IC 24-4.6-1. The interest shall be computed as having accrued
from the Due Date until the date that Respondent pays any unpaid balance. Such
interest shall be payable to the Environmental Management Special Fund, and shall be payable to IDEM in the manner specified
in Paragraph 5, above.
7.
Signatories to this Agreed Order certify that
they are fully authorized to execute this Agreed Order and legally bind the
party they represent.
8.
This Agreed Order shall apply to and be binding
upon Respondent and all successors and assigns. Respondent shall provide a copy
of this Agreed Order, if in force, to any subsequent owners, successors, or
assigns before ownership rights are transferred.
9.
No change in ownership, corporate, or
partnership status of Respondent shall in any way alter the Respondent’s status
or responsibilities under this Agreed Order.
10.
Respondent shall ensure that all contractors,
firms, and other persons performing work under this Agreed Order comply with
the terms of this Agreed Order.
11.
In the event that any terms of
this Agreed Order are found to be invalid, the remaining terms shall remain in
full force and effect and shall be construed and enforced as if this Agreed
Order did not contain the invalid terms.
12.
This Agreed Order is not and shall not be interpreted
to be a permit or a modification of an existing permit. This Agreed Order, and
IDEM’s review or approval of any submittal made by Respondent pursuant to this
Agreed Order, shall not in any way relieve Respondent of the obligation to
comply with the requirements of any applicable permits or any applicable
Federal or State laws or regulations.
13.
Complainant does not, by its approval of this
Agreed Order, warrant or aver in any manner that Respondent’s compliance with
any aspect of this Agreed Order will result in compliance with the provisions
of any permit, order, or any applicable Federal or State law or regulation.
Additionally, IDEM or anyone acting on its behalf shall not be held liable for
any costs or penalties Respondent may incur as a result of
Respondent’s efforts to comply with this Agreed Order.
14.
Nothing in this Agreed Order shall prevent or
limit IDEM’s rights to obtain penalties or injunctive relief under any
applicable Federal or State law or regulation, except that IDEM may not, and hereby
waives its right to, seek additional civil penalties for the violations
specified in the Findings of Fact.
15.
Nothing in this Agreed Order shall prevent IDEM
or anyone acting on its behalf from communicating with the U.S. Environmental
Protection Agency (“U.S. EPA”) or any other agency or entity about any matters
relating to this enforcement action. IDEM or anyone acting on its behalf shall
not be held liable for any costs or penalties Respondent may incur as a result of such communications with the U.S. EPA or any
other agency or entity.
16.
This Agreed Order shall remain in effect until
Respondent has complied with all terms and conditions of this Agreed Order and
IDEM has issued a Resolution of Case letter to Respondent.
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TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
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BP Products North America Inc. |
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David
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Enforcement
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Office
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COUNSEL
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COUNSEL
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For
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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For
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Signed
on April 27, 2023 |
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Matthew
Stuckey |
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Assistant
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Office
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Department of Environmental Management |
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