Industrial Polluters Will Have to Cleanup and Pay Hefty Fees for EPA Violations

Protesters against Massey Energy Co. Photo Courtesy of Ohio Valley Environmental Coalition.

WASHINGTON, D.C. — Regulated power and fuel companies found in violation of the Environmental Protection Agency’s enforcement and compliance program in 2008 will have to clean up and pay out record amounts, according to David Ryan, EPA Washington press officer.

A total of approximately $11.8 billion will be paid out for pollution controls, cleanups, and environmental projects as penalties resulting from the conclusions of civil and criminal enforcement actions taken by the EPA this year. Beyond power and fuel companies, other violators included in this payout total were: home builders, manufactures, operators of hazardous waste sites, and chemical companies.

Three of the power and fuel companies included in EPA’s enforcement actions were:

• Massey Energy Co. Inc., a Richmond, Va.- based coal producer covering the Central Appalachia region which covers counties in the states of Kentucky, Ohio, Tennessee, Virginia, and West Virginia.
• American Electric Power , a Columbus, Ohio-based coal-fired electric utility company, serving the states of: Arkansas, Indiana, Kentucky, Louisiana, Michigan, Ohio, Oklahoma, Tennessee, Texas, Virginia, and West Virginia.
• British Petroleum Exploration (Alaska), Inc., headquartered in London, is the third largest global energy company, and a multinational oil company.

In further detailing the actions against these companies, Massey has agreed to pay a $20 million civil penalty in a corporate-wide settlement to resolve Clean Water Act violations, the largest of its kind, for discharging pollutants into Central Appalachia waterways, according an announcement by the U.S. Justice Department and the EPA.

In a complaint filed against Massey with the U.S. District Court for the Southern District of West Virginia , the company was accused of discharging excess amounts of metals, sediment, and acid mine drainage into hundreds of rivers and streams in West Virginia and Kentucky.

Many of the pollutants were discharged in amounts 40 percent or more than allowed, and some pollutants were discharged at levels more than 10 times over the permit limits, according to the EPA.

Massey is expected to invest approximately $10 million to develop and implement a set of procedures to prevent future violations, said the EPA. The company is also expected to implement an electronic tracking system that allows the company to “quickly” address compliance problems and correct any violations of permit limits.

These measure fits within an environmental compliance program that Massey has agreed to implement, which includes in-depth internal and third-party audits, employee training, and a plan to prevent future spills.
Massey is also expected to set aside 200 acres of riverfront land in West Virginia for conservation purposes and protection from future mining. The company is also required to perform 20 projects downstream from mining operations.

On its front, American Electric has agreed to install pollution controls and take other measures that are expected to reduce approximately 1.6 billion pounds of air pollution.

Within these measures, American Electric is expected to install pollution control equipment to reduce and cap sulfur dioxide and nitrogen oxide emissions by more than 813,000 tons per year when fully implemented, according to the EPA.

By installing these pollution control measures, the plants is expected to emit approximately 79 percent less sulfur dioxide and 69 percent less nitrogen oxides, as compared to 2006 emissions, according to the EPA. The company has also agreed to pay a $15 million penalty, the largest ever paid by an electric utility for New Source Review violations of the Clean Air Act.

American Electric is expected to spend an additional $60 million to finance and conduct projects to mitigate the impact of past emissions. Of the total, $24 million for these projects is expected to be allocated among the states that joined the settlement. The remaining $36 million is expected to be spent on mitigation projects identified in the settlement. The American Electric settlement was lodged with the U.S. District for the Southern of Ohio.

For its part, British Petroleum has plead guilty to a violation of the Clean Water Act to resolve criminal liability relating to leaks of crude oil onto the tundra as well as a frozen lake in Alaska, according to the U.S. Department of Justice. The company will serve three years of probation.

In addition, as part of the guilty plea, the company is expected to pay $12 million in criminal fines for spilling 200,000 gallons of crude oil onto the Alaskan tundra and onto the frozen lake in March 2006, resulting in the largest spill that ever occurred on the North Slope. British Petroleum will also be required to replace 16 miles of pipeline at an estimated cost of $150 million, according to the EPA.

Furthermore, the company is expected to make $4 million in payments to the National Fish and Wildlife Foundation to support research and activities on the North Slope.