Equilon Enterprises LLC Settlement

On March 21, 2001, EPA and the Department of Justice announced a settlement that commits nine refineries owned by Motiva, Equilon, and the Deer Park Refining Limited Partnership (Shell Deer Park) to an ambitious program to assure compliance with major provisions of the Clean Air Act. The companies expect to spend a total of $400 million over eight years to reduce emissions of nitrogen oxides (NO_x) by an estimated 8,000 tons per year, sulfur dioxide (SO₂) by more than 49,550 tons per year, and particulate matter (PM) by 1,300 tons per year.

On this page:

Overview
Refineries Compliance Strategy
State Partnerships
Companies/Affected Refineries
Settlement Terms

Overview

The settlement announced commits nine refineries owned by Motiva, Equilon, and the Deer Park Refining Limited Partnership (Shell Deer Park) to an ambitious program to assure compliance with major provisions of the Clean Air Act. The companies expect to spend a total of $400 million over eight years to reduce emissions of nitrogen oxides (NOx) by an estimated 8,000 tons per year, sulfur dioxide (SO2) by more than 49,550 tons per year, and particulate matter (PM) by 1,300 tons per year.

The consent decree provides for a limited pool of emission reductions that can be used to expedite production of clean fuels to meet “Tier II” and low sulfur diesel standards that begin to take effect in 2004. These provisions, which will help eliminate clean fuel production bottlenecks that could shrink supply and raise prices, are subject to review by state and local permit authorities.

Refineries Compliance Strategy

This is the third settlement in a federal strategy for achieving cooperative across-the-board compliance with U.S. refining companies. Last year the federal government reached similar and record settlements with BP and Koch Petroleum Group, two of the nation’s largest oil refiners. When combined with BP and Koch, the three agreements cover nearly 25 percent of total U.S. refining capacity.

EPA also is engaged in settlement negotiations with several other companies comprising an additional 25 percent of total U.S. refining capacity.

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State Partnerships

The states of Delaware and Louisiana, and the Northwest Air Pollution Authority (NWAPA) have joined in this settlement. NWAPA is the Washington State’s regional regulatory agency charged with enforcing air pollution laws in Island, Skagit, and Whatcom counties. The states of Delaware and Louisiana will share in the civil penalty and all plaintiffs will benefit from additional environmental projects in communities where the refineries are located.

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Companies/Affected Refineries

Motiva Enterprises LLC is a joint venture of Shell, Texaco, and Saudi Refining, Inc. Deer Park Refining Limited Partnership is a joint venture of Shell and a subsidiary of Petroleos Mexicanos. Equilon Enterprises LLC is a joint venture between Shell Oil Company and Texaco Inc. The nine refineries, located in five states, together process about 1.6 million barrels of oil a day, and represent approximately 10 percent of total refining capacity. The following refineries are subject to the consent decree: