Lake Charles Refinery Charged with Violating Clean Air Act

Posted: Sep 7, 2011 1:42 PM by Tonya LaCoste/Press Release
Updated: Sep 7, 2011 2:55 PM

A Texas Oil company, operating a refinery in Lake Charles is charged with criminal violations of the Clean Air Act. Pelican Refining Company, LLC, is accused of knowingly violating its permit and obstructing justice by filing a false report with the Louisiana Department of Environmental Quality. According to U.S. Attorney Stephanie Finley's office, the company operated without following various permit requirements for properly preventing the escape of pollutants, including Hydrogen Sulfide (H2S) into the environment.

The alleged violations include operating the refinery in Lake Charles, LA, without assuring that a crude oil storage tank that had a failed floating roof had properly been placed into service and then used; without the use of a non-regenerable carbon bed designed to collect and reduce emissions at the barge loading dock; without the use of caustic to treat and remove non-condensable toxic pollutants, including H2S; without the use a continuous emissions monitoring system to continuously monitor H2S concentrations; without a properly-functioning process flare at all times when emissions, including H2S, could be discharged into the atmosphere.

On July 6, 2011, Byron Hamilton, a Pelican Vice President, pleaded guilty of negligent endangerment charges under the Clean Air Act before U.S. District Judge Richard T. Haik in Lafayette.[http://www.justice.gov/opa/pr/2011/July/11enrd-885.html]. The federal investigation was initiated after a March 2006 inspection by the Louisiana Department of Environmental Quality and EPA found violations of the facility's operating conditions, including unpermitted releases of H2S, storage of crude oil in an unrepaired storage tanks, failure to repair emissions monitoring and control equipment, and the use of plastic children's swimming pools to contain petroleum leaks. If convicted, the maximum penalty that the company faces for these knowing violations is the higher of $500,000 per count or up to twice the gross gain or loss to persons from the offense.