2023 Coffeyville Resources Refining & Marketing, LLC Clean Air Act Settlement Information Sheet

(Washington, DC - November 20, 2023) The U.S. Environmental Protection Agency (EPA), the U.S. Department of Justice (DOJ), and the State of Kansas announced a settlement with Coffeyville Resources Refining & Marketing, LLC for alleged violations of requirements of a 2012 consent decree and provisions of the Clean Air Act. The company agreed to pay a $13.25 million penalty, spend at least $1 million on a state-approved project to protect human health and the environment, and comply with the new consent decree requirements to limit air pollution from its oil refinery in Coffeyville, Kansas.

On this page:

• Overview
• Violations
• Injunctive Relief
• Pollutant Reductions and Environmental Benefits
• Health and Environmental Effects
• Civil Penalty
• Comment Period
• Contact

Overview of Coffeyville Resources Refining and Marketing, LLC

Coffeyville Resources Refining & Marketing, LLC (CRRM) is the operator of an oil refinery in Coffeyville, Kansas. Other affiliated entities own the refinery. The refinery has the capacity to refine approximately 132,000 barrels per calendar day and predominantly produces transportation products such as gasoline, diesel fuels, and propane.

Violations

EPA, DOJ, and the state of Kansas allege that CRRM violated several requirements of a 2012 consent decree and provisions of the Clean Air Act. The alleged violations of the 2012 consent decree include, but are not limited to, failures to monitor the concentration of hydrogen sulfide (H₂S) in gases being burned in flares, and other monitoring violations. The alleged CAA violations include but are not limited to

• Exceedances of hydrogen sulfide concentration limit for flares under the New Source Performance Standards (NSPS), 40 C.F.R. Subpart Ja (NSPS for Petroleum Refineries for Which Construction, Reconstruction, or Modification Commenced After May 14, 2007);
• Failures to comply with requirements for flare efficiency under the National Emission Standards for Hazardous Air Pollutants (NESHAP) Subpart CC (NESHAPs from Petroleum Refineries); and
• Excess nitrogen oxide (NO_x) emissions from a refinery heater.

These violations resulted in alleged excess emissions of various pollutants including over 2,300 excess tons of sulfur dioxide (SO₂) from the refinery’s flares from 2015 to 2017, and approximately 9.5 tons of excess NO_x emissions from 2017 to 2022.

Actions Required Under the Settlement Agreement Injunctive Relief

The settlement requires CRRM and other affiliated entities to comply with NSPS Subpart Ja, NESHAP Subpart CC, and all other CAA regulations alleged to have been violated. During the course of the government’s investigation, CRRM took several steps to reduce the hydrogen sulfide concentration exceedances, including waste gas audits, waste gas mapping, acoustic monitoring, replacement and tightening of valves and seals, rerouting high sulfur gas streams, and the installation of a Sulfix (H₂S scavenger) system. The consent decree also requires enhanced reporting related to the refinery’s flaring activities, an inventory and painting of potential open-ended lines, and nitrogen oxides (NO_x) reductions from a heater.

The settlement includes two mitigation projects. First, CRRM must install a flare gas recovery system (FGRS) at the refinery’s Cold Water Pond flare, at an estimated cost of $9 million, to reduce the refinery’s flaring. Second, CRRM must install low nitrogen oxide burners on one of the refinery heaters to mitigate the excess emissions caused by the violations.

Pollutant Reductions and Environmental Benefits

The measures undertaken by CRRM to address the NSPS Subpart Ja violations have reduced sulfur dioxide (SO₂) emissions from its flares by as much as 2,388 tons from 2015 to 2017, representing a more than 99% reduction in emissions from the two flares since 2015. From 2016 to 2022, CRRM’s actions further reduced carbon dioxide emissions by 35,653 tons per year and methane emissions by 148 tons per year for a total of 39,348 tons per year carbon dioxide equivalents, which is the equivalent of removing approximately 8,000 cars from the road.

When fully implemented, the new controls and requirements under the consent decree are estimated to achieve the following emissions reductions. The Flare Gas Recovery System (FGRS) will reduce approximately 1.7 tons per year of sulfur dioxide, which is approximately an 80% reduction from the emissions for the Cold Water Pond (CWP) flare in 2022 and will prevent future flaring from occurring approximately 90% of the time. The FGRS will also reduce approximately 11,446 tons per year of carbon dioxide and 58 tons per year of methane for a total of 12,888 tons per year of carbon dioxide equivalents, and an additional 7.3 tons per year of nitrous oxide. The installation of the low nitrous oxide burners is anticipated to reduce emissions by 9.57 tons per year.

Health and Environmental Effects

• Sulfur Dioxide (SO₂) – High concentrations of sulfur dioxide affects breathing and may aggravate existing respiratory and cardiovascular disease. Sensitive populations include asthmatics, individuals with bronchitis or emphysema, children, and the elderly. Sulfur dioxide is also a primary contributor to acid deposition, commonly referred to as acid rain.
• Nitrogen Oxides (NO_x) – Nitrogen oxide can cause ground-level ozone, acid rain, particulate matter, global warming, water quality deterioration, and visual impairment. It plays a major role, with volatile organic chemicals, in the atmospheric reactions that produce ground level ozone. Children, people with lung diseases such as asthma, and people who work or exercise outside are more susceptible to adverse effects such as damage to lung tissue and reduction in lung function.
• Greenhouse Gases (GHG) – The release of GHGs into the atmosphere traps heat and affects the earth’s temperature. The continued release of GHGs at or above the current rate will increase average temperatures around the globe. Increases in global temperatures will most likely change our planet’s climate in ways that will have significant long-term effects on people and the environment.

Civil Penalty

CRRM will pay $7,000,000, plus interest, in stipulated penalties for violations of the 2012 consent decree and a civil penalty of $6,250,000, plus interest. The consent decree also requires CRRM to spend $1 million on a state supplemental environmental project to benefit the citizens and the environment of Kansas.

Comment Period

The proposed Consent Decree was lodged in the U.S. District Court for the District of Texas and is subject to a 30-day public comment period and final court approval. Information on submitting comment is available at the Department of Justice website.

For more information, contact:

Patrick W. Foley
Senior Environmental Engineer
U.S. Environmental Protection Agency (2242A)
1200 Pennsylvania Ave., N.W.
Washington, DC 20460-0001
(202) 564-7978
[email protected]