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Environmental News

Dianna Whitaker
(913) 551-7003
whitaker.dianna@epa.gov

FOR IMMEDIATE RELEASE

March 4, 2004

EPA SETTLEMENT REDUCES AIR POLLUTION AT REFINERY AND ENSURES CLEANUP OF HAZARDOUS WASTES

EPA Region 7 announced a settlement with Coffeyville Resources Refining & Marketing, LLC, and Coffeyville Resources Terminal, LLC, which will result in significant reductions in air pollution and ensure cleanup of hazardous waste at two facilities in Coffeyville and Phillipsburg, Kansas.

The U.S. Department of Justice and the Kansas Department of Health and Environment joined EPA in reaching this agreement with the two facilities, which were formerly owned by Farmland Industries. The settlement addresses the Farmland refinery and fertilizer plant in Coffeyville and the Farmland terminal in Phillipsburg.

Region 7 Administrator Jim Gulliford said, “This settlement brings the company into compliance by requiring use of state of the art emission controls resulting in significant reductions in the refinery’s air pollution and also ensures hazardous waste cleanup. The local community will gain cleaner air and a safer environment.”

By entering the Consent Decree which was filed in the United States District Court in Kansas City, Kansas, Coffeyville Resources has agreed to install the best available control technology (BACT) and meet stringent limits on its emissions of nitrogen oxides (NOx) and sulfur dioxide (SOx) from the Coffeyville refinery by 2010. In the meantime, Coffeyville is required to implement an aggressive catalyst additive program which will significantly reduce NOx and SOx emissions until the best technology is installed. EPA estimates that the refinery improvements will reduce emissions of NOx by approximately 580 tons per year, and SOx emissions by 1,200 tons per year.

In addition, other air pollution controls and work practices will also be implemented to further reduce harmful emissions and ensure compliance with the benzene waste requirements under the Clean Air Act’s National Emissions Standards for Hazardous Air Pollutants.

Coffeyville Resources also assumes Farmland’s hazardous waste responsibilities under the Resource Conservation and Recovery Act (RCRA) and has established a trust to finance existing and future cleanup of hazardous wastes at the two facilities.

Assistant Attorney General Thomas L. Sansonetti at the U.S. Department of Justice said, “The combined effort of the federal and state environmental agencies in this case is a laudable example of how the federal/state partnership can effectively address difficult environmental challenges.”

Farmland completed the sale of its refinery and fertilizer plant to Coffeyville Resources on March 3. These facilities were the last major assets to be sold by Farmland related to its reorganization plan under the largest bankruptcy in area history. Coffeyville Resources is an affiliate of Pegasus Capital Advisors of Greenwich, Connecticut.

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