WASHINGTON — Today, Sept. 27, the U.S. Environmental Protection Agency and the Department of Justice announced a settlement with the Lima Refining Company (LRC), a wholly-owned subsidiary of Canadian-based Cenovus Energy, to address violations of the Clean Air Act at its refinery in Lima, Ohio.

Under the settlement, LRC must pay a civil penalty of $19 million and implement an estimated $150 million in capital investments, including control technology expected to reduce emissions of benzene by an estimated 4.34 tons per year, other hazardous air pollutants (HAP) by 16.26 tons per year and other volatile organic compound emissions (VOC) by 219 tons per year. The Lima Refinery is surrounded by a community with environmental justice concerns.

“Lima Refining unlawfully exposed the surrounding community to toxic benzene emissions and other hazardous pollutants,” said Assistant Administrator David Uhlmann of the EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates how fenceline monitoring can help protect overburdened communities from harmful emissions from the oil and gas sector, including refineries. Lima will pay a substantial penalty for its violations and install $150 million in emissions controls that will provide cleaner air and healthier water to a community that deserves nothing less.” ¹

“This settlement is part of an ongoing initiative to curtail illegal benzene and VOC emissions at refineries that have failed to allocate the necessary personnel and capital investments to ensure compliance with rules they have long been subject to,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Under the settlement, the refinery will implement controls that will greatly improve air quality and reduce health impacts on the overburdened community that surrounds the refinery.”

“Environmental justice is a core priority of our Office and of the Department. Through its illegal emissions of benzene, VOCs, and other pollutants from its facility, the LRC impermissibly violated the Clean Air Act and jeopardized the health Ohio’s residents,” said U.S Attorney Rebecca C. Lutzko for the Northern District of Ohio. “We will continue to be vigilant and strictly enforce environmental laws and regulations to protect our district’s residents from toxic pollutants. Ohioans should not have to worry about living and working in an area where air pollution from local industry could make them sick.” 

As part of the settlement, LRC will install one or more flash columns to reduce benzene in wastewater streams leading to its wastewater treatment plant and will cease operating, replace or upgrade other units at the refinery. LRC will also install six air pollutant monitoring stations to monitor air quality outside of the refinery fence line and make the results publicly available.

The United States’ complaint, filed simultaneously with the settlement, alleges that LRC violated federal regulations limiting benzene in refinery wastewater streams, and HAP and VOC emissions at its Lima Refinery, as well as the general requirement to use good air pollution control practices.

Benzene is known to cause cancer in humans. Short-term inhalation exposure to benzene also may cause drowsiness, dizziness, headaches, as well as eye, skin and respiratory tract irritation, and, at high levels, unconsciousness. Long-term inhalation exposure can cause various disorders in the blood, including reduced numbers of red blood cells and anemia in occupational settings. Reproductive effects have been reported for women exposed by inhalation to high levels, and adverse effects on the developing fetus have been observed in animal tests.

VOCs, along with nitrous oxide, play a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. Ground-level ozone exposure is linked to a variety of short- and long-term health problems, including difficulty breathing, aggravated asthma, reduced lung capacity and increased susceptibility to respiratory illnesses like pneumonia and bronchitis.

This settlement is part of EPA’s and the Justice Department’s ongoing focus on assisting communities that have been historically marginalized and disproportionately exposed to pollution.

The proposed consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a public comment period and final court approval. Information on submitting comment and access to the settlement agreement is available on the Department of Justice Proposed Consent Decree webpage.

For more information about the settlement, please visit the Lima Refinery Settlement Case Summary webpage.

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