Chalmette Refining seen paying millions for pollution
Date: 12-Nov-04
Country: USA
A settlement of the state's air and water pollution complaints against the refinery east of New Orleans could be unveiled in the first quarter of 2005, said Bruce Hammatt, an administrator of the Louisiana Department of Environmental Quality.
"I fully expect the company will have to spend millions to come into compliance," Hammatt said.
Most of the money will be spent on improving pollution-reduction systems at the refinery, a 50-50 joint venture between Exxon Mobil Corp. (XOM.N: Quote, Profile, Research) and Venezuela's state oil company Petroleos de Venezuela S.A. (PDVSA).
The improvements likely won't be completed for several years as the pollution-reduction projects are fit into annual refinery maintenance schedules.
The Chalmette refinery is also the subject of a lawsuit by two enviromental groups in federal court alleging repeated, multiple violations of the U.S. Clean Air Act.
A refinery spokeswoman confirmed talks were underway.
"Chalmette Refining is having on-going talks with the Department of Environmental Quality," said spokeswoman Nora Scheller. "The talks do involve the issues being raised by the plaintiffs in the lawsuit."
Both Scheller and Hammatt declined to provide details about the specific proposals being negotiated.
After a settlement between the state and the refinery is agreed upon, it must be submitted for 45 days of public comment and a 90-day review by the state attorney general before it can take effect.
The settlement, however, may not resolve the environmental groups' lawsuit, which seeks fines up $27,500 per day for each alleged violation.
