Coffeyville Resources Refining & Marketing (NYSE: CVI) will pay a civil penalty of more than $970,000 and invest more than $4.25 million on new pollution controls and $6.5 million in operating costs to end violations of air, superfund and community right-to-know laws at its Coffeyville, Kansas refinery. CRRM’s refinery has the capacity to refine more than 115,000 barrels of crude oil per day, producing gasoline, diesel fuels and propane.
The pollution controls required by the settlement will reduce an estimated 200 tons of NOx emissions and more than 110 tons of SO2 emissions annually. The settlement will also reduce emissions of volatile organic compounds, particulate matter, carbon monoxide and other pollutants that affect air quality.
CRRM has also agreed to perform a voluntary environmental project at the refinery valued at more than $1.2 million. According to the U.S. Environmental Protection Agency, this will benefit surrounding communities by reducing emissions of volatile organic compounds and hydrogen sulfide, reducing the frequency of future acid gas flaring incidents, and conserve 15 million gallons of water each year that would previously have come from the Verdigris River.
“This settlement puts CRRM on a level playing field with the more than 100 petroleum refineries that have agreed to implement aggressive pollution control measures, thereby reducing the threats posed by harmful emissions to area residents,” said Ignacia S. Moreno, assistant attorney general for the Environment and Natural Resources Division of the Department of Justice.
The first of EPA’s settlements was reached in 2000, and with today’s settlement, 107 refineries operating in 32 states and territories – more than 90% of the total refining capacity in the United States – are under judicially enforceable agreements to reduce emissions of pollutants. Because of the settlement agreements, refiners have agreed to invest more than $6 billion in new pollution controls designed to reduce emissions of sulfur dioxide, nitrogen dioxide and other pollutants by more than 360,000 tons per year, according to EPA.
Headquartered in Sugar Land, Texas, with main operations in Coffeyville, Kansas, CVR Energy and CVR Partners combined employ more than 950 employees and generated more than $5 billion in net sales revenue in 2011.