2 Shell refineries reach settlement with feds, agree to install $6M in equipment, pay $3M fine

Shell refineries agree to install $6M of equipment

ST. ROSE, La. — Two Shell chemical companies have agreed to install $6 million in pollution reduction equipment at two petroleum refineries in Louisiana and Alabama as part of a Clean Air Act settlement with the federal government.

Shell Chemical LP and Shell Chemical Yabucoa, units of Royal Dutch Shell PLC, also will pay a combined $3.3 million fine to the federal government and the two states and $193,370 to Louisiana organizations for environmental education, teacher workshops and emergency operations, the Justice Department and the Environmental Protection Agency said Wednesday.

The new pollution control equipment will be installed at Shell Chemical refineries in St. Rose, La., and Saraland, Ala.

The settlement also affects a refinery in Yabucoa, Puerto Rico, which was closed for business reasons in July 2008. Shell Chemical Yabucoa’s existing terminal operation in Puerto Rico will upgrade its operations, the Justice Department said.

“These two settlements are excellent examples of businesses working with government to achieve compliance at their facilities across the country, which will benefit the health of local communities and the environment,” Assistant U.S. Attorney General Ignacia Moreno said.

In a statement, Shell said Alabama will get $622,000 and Louisiana will receive $184,630.

Since late 2000, the EPA has reached clean air compliance agreements with 99 U.S. refineries.

“Shell shares the goal of environmental groups and agencies where it operates, and strives to comply with all permits and regulations,” the company said.

Federal officials said the new equipment would reduce sulfur dioxide, nitrogen oxides and other pollutants by about 1,450 tons annually. The three refineries had a combined production capacity of about 235,000 barrels of oil per day.

Shell said it intended to return its air permits for the Puerto Rico refinery.

The settlements have been filed in federal court in Houston and Puerto Rico. The public has 30 days to comment before a judge considers them.