The US Environmental Protection Agency (EPA) and the Department of Justice (DOJ) announced a settlement agreement with the Lima Refining Company (LRC) resolving alleged Clean Air Act violations for excess emissions from wastewater of benzene and other volatile organic compounds from its refinery in Lima, Ohio.

Under the settlement, LRC will pay a civil penalty of $19 million and is required to reduce benzene and volatile organic compound (VOC) emissions by addressing its previous noncompliance and implementing compliance monitoring and training at Lima Refinery. The company will implement capital projects with an estimated value of $150 million to ensure it complies with the settlement requirements.

The Lima Refinery in Lima, Ohio processes about 165,000 barrels per day of crude, as well as low-sulfur gasoline, gasoline blend stocks, ultra-low sulfur diesel, jet fuel, petrochemical feedstock and other byproducts. Refined products are transported via pipelines and rail cars to primary markets in Ohio, Illinois, Indiana, Pennsylvania, and southern Michigan.

LRC is a wholly-owned subsidiary of Canadian-based Cenovus Energy Inc., which currently owns and operates two other petroleum refineries in Ohio and Wisconsin, and has a stake in two additional refineries in Illinois and Texas.

Capital projects to reduce benzene, VOC, and other HAP emissions include:

• Install a flash column and either an oil/solids removal unit or a second flash column to reduce benzene in wastewater.

• Cease operation or replace the two induced nitrogen gas floatation units (IGFUs).

• Upgrade the collection lift station.

• Cease operation or implement required design changes to its existing E-Tank.

• Upgrade the flare gas recovery system by installing and operating new blowers and a new vapor header.

• Perform a flare gas recovery system capacity evaluation and increase capacity, if necessary.

• Replace emergency vents to reduce emissions on two units and replace pressure-vacuum vents to reduce emissions on other units.