BP Fined $40 Million By Regulators in Clean Air Settlement

By Dean Seal

Federal regulators have fined BP $40 million as part of a settlement over alleged violations of the Clean Air Act at an oil refinery in Indiana.

The U.S. Department of Justice and Environmental Protection Agency alleged in a civil complaint that BP's North American subsidiary violated federal regulations that limit the amount of benzene in refinery wastewater streams as well as air pollutants and emissions at a refinery it operates in Whiting, Ind.

BP has agreed to settle the action by installing at least one permanent benzene stripper to reduce benzene in streams that lead to its lakefront wastewater treatment plant. It will also install 10 air pollutant monitoring stations to keep an eye on air quality outside of the refinery fence line.

The investments BP that will make to allay the regulators' concerns are estimated to cost more than $197 million.

The oil and gas giant has also agreed to pay a fine of $40 million, marking the largest civil penalty ever secured in a Clean Air Act stationary source settlement.

Separately, BP has agreed to undertake a $5 million supplemental environmental project aimed at cutting diesel emissions in the communities that surround the Whiting refinery.

"Under the settlement, the refinery will implement controls that will greatly improve air quality and reduce health impacts on the overburdened communities that surround the facility," said Todd Kim, assistant attorney general for the Justice Department's environment and natural resources division.

A representative for BP didn't immediately respond to a request for comment.

Write to Dean Seal at [e-mail]

(END) Dow Jones Newswires

May 17, 2023 11:31 ET (15:31 GMT)

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