News Summary
Citgo Petroleum Corp. has proposed a $160,000 settlement to resolve over 200 alleged environmental violations at its Westlake refinery, addressing significant air emissions concerns. The history of these violations stretches from 2017 to 2021, including harmful incidents like a benzene leak. Despite the refinery’s economic importance, critics argue the settlement is insufficient for the severity of the alleged breaches. The public has 45 days to comment on the proposal before it can be finalized by the Louisiana Attorney General’s Office.
Lake Charles Faces Citgo’s $160,000 Environmental Settlement
LAKE CHARLES, Louisiana – In a surprising turn of events, Citgo Petroleum Corp. has proposed a settlement of $160,000 with state regulators to resolve over 200 alleged environmental violations at its oil refinery located in Westlake, Louisiana. This settlement, which has recently come to light, aims to address serious concerns surrounding air emissions and other environmental issues that have surfaced over the last few years.
Violation History: A Troubling Timeline
The alleged violations date back to 2017 and extend all the way to 2021. Among the claims, there are some notable incidents worth mentioning. One of the most alarming was a leak of 662 pounds of benzene, a chemical known to be harmful to human health and a recognized carcinogen, which occurred in August 2018. Not long after, another incident in September 2018 saw a significant crude oil leak because of corrosion in a floating roof of a storage tank. While the oil spill was contained, it still resulted in the emission of hundreds of thousands of pounds of toxic volatile organic compounds into the air.
Regulatory Scrutiny and Past Fines
This settlement is part of ongoing scrutiny from both state and federal regulators regarding Citgo’s environmental practices. The company has previously faced fines totaling millions for various breaches related to air and water quality. Notably, in a settlement with the U.S. Department of Justice in 2021, Citgo agreed to pay a hefty $19.7 million related to a significant spill of waste oil and industrial wastewater in the Calcasieu River back in 2006.
A Look Ahead
The proposed settlement was made public in late January 2024, and it is currently under a 45-day public comment period. This requires the stamp of approval from the Louisiana Attorney General’s Office to become final. Should it be approved, it’s important to note that Citgo will not be admitting to the reported violations issued by the Louisiana Department of Environmental Quality (DEQ).
Economic Impact
Despite the environmental concerns, the Citgo refinery remains a significant employer in the region. It boasts over 1,000 direct employees and has an impressive capacity of 463,000 barrels per day. Ranking as the nation’s seventh-largest oil refinery, the facility produces a variety of products, including gasoline, jet fuel, and butane. On a sprawling 2,000 acres along the Calcasieu River, Citgo benefits from integration into a vast pipeline network with direct access to the Gulf of Mexico.
What Comes Next?
Citgo, a subsidiary of the Venezuelan state oil company, is currently facing additional challenges. A potential sale in a debt auction being overseen by a federal judge in Delaware is expected to take place this year. DEQ officials have mentioned that the settlement was designed to avoid the high costs associated with litigation, following their standardization for determining fines.
Critics Weigh In
Despite the settlement offer, environmental critics aren’t holding back. Many argue that a fine of $160,000 is merely a slap on the wrist given the severity of the violations. They point out that the alleged breakdowns included failures in operational protocols, timely reporting practices, and the maintenance of emissions-monitoring equipment. The emissions from the Citgo facility have included pollutants such as nitrogen oxide, sulfur dioxide, and various volatile organic compounds that are known to be detrimental to public health.
Community Concerns
Residents in the area have also voiced their worries. In July 2017, there were reports of a strong odor emanating from the refinery, which was attributed to a release that included hydrogen sulfide and sulfur dioxide. Citgo’s explanation for this incident was equipment failure, further raising eyebrows among local communities. The benzene leak from August 2018, which was not reported for two weeks, added fuel to the fire, generating concerns regarding adherence to state and federal reporting laws.
As Lake Charles braces for the outcome of this settlement, the situation continues to highlight the balancing act between industry operations and environmental stewardship. The community hopes for a resolution that not only addresses past violations but also enhances the protection of their environment for the future.
Deeper Dive: News & Info About This Topic
- The Advocate: Citgo Louisiana Refinery Oil Pollution
- NOLA: Citgo Agrees to Pay $19.7 Million
- KPLC: Explosion at Citgo
- Google Search: Citgo oil refinery
- American Press: Auction Could Change Ownership of Citgo Delayed
- Encyclopedia Britannica: Oil Refinery
