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News Releases from Region 09

U.S. EPA cites two Guam bulk fuel companies for chemical safety violations

Contact Information: 
Dean Higuchi (higuchi.dean@epa.gov)

HONOLULU - The U.S. Environmental Protection Agency has reached separate agreements with South Pacific Petroleum Corporation and Tristar Terminals Guam Inc. for a total of $406,000 in penalties to resolve federal chemical safety violations at their facilities in Guam.

The actions were taken under the Clean Air Act's Section 112(r) Risk Management Plan requirements. South Pacific Petroleum Corp. (SPPC) will pay a fine of $206,000 for propane storage violations at its Cabras Distribution Terminal, and Tristar will pay $200,000 for propane storage violations at its Agat facility. Both facilities are liquid petroleum storage and distribution terminals.

"The safety of the residents on Guam depends on companies preparing for possible emergencies at their facilities," said Jared Blumenfeld, EPA's Regional Administrator for the Pacific Southwest. "EPA will work with both facilities to ensure they comply with EPA requirements and operate in a safe manner."

EPA inspections found that neither Tristar nor SPPC had reviewed or updated its hazard assessment since 2005 or 2006, respectively. Also, both Tristar and SPPC had also miscategorized their facilities in terms of the level of Risk Management Plan requirements required for compliance. As a result, neither company had implemented the robust accidental release prevention program requirements that applied. In August 2013, EPA issued a compliance order to each facility requiring correction of the identified violations. Both facilities have corrected the violations and have certified that they are currently in compliance.

The Risk Management Plan requirements include developing a hazard assessment detailing the potential effects of an accidental release; an accidental release prevention program that includes safety precautions, safe operating procedures, maintenance and employee training measures; and emergency response program that spells out emergency health care, employee training measures and procedures for informing the public and local response agencies should an accident occur.

For more information on the Risk Management Program, please visit: http://www2.epa.gov/rmp

For more information on the Clean Air Act's General Duty Clause, please visit: http://www2.epa.gov/rmp/general-duty-clause-fact-sheet