Par Pacific Holdings, Inc. has announced that its wholly-owned subsidiary, Par Hawaii Refining, LLC, entered into a consent decree with subsidiaries of Tesoro Corporation, the United States Environmental Protection Agency, the United States Department of Justice and other state governmental agencies (the ‘Consent Decree’). The Consent Decree concerns alleged violations of the federal Clean Air Act by a subsidiary of Tesoro that occurred prior to the acquisition of that entity by Par in September 2013 (the ‘Acquisition Date’).
Tesoro will reimburse Par for all reasonable third party capital expenditures incurred for the Consent Decree to the extent related to acts or omissions prior to the Acquisition Date. Tesoro is obligated to pay all applicable fines and penalties related to the Consent Decree. Par Pacific estimates the cost of compliance with the Consent Decree to be approximately US$30 million.
As previously announced, the company is currently completing a refinery turnaround to execute routine maintenance. As a result of the Consent Decree, the company has expanded the turnaround to undertake additional capital improvements to reduce emissions of air pollutants, to provide for certain nitrogen oxide and sulfur dioxide emission controls and monitoring, and to install certain leak detection and repair equipment required by the Consent Decree.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/19072016/par-pacific-to-install-pollution-control-equipment-3734/