The Colorado Department of Public Health and Environment (CDPHE) recently announced at least $10.5 million in penalty and facility improvement payments against Suncor Energy Inc. accusing it of breaching air pollution control rules.
The demand, the biggest enforcement package for air pollution on a single facility, targets the Canadian integrated energy company’s oil refinery in Commerce City, the agency said in a news release.
“Many of Suncor’s violations were associated with power disruptions”, the CDPHE said. “The enforcement package addresses air pollution violations between July 2019 and June 2021.
“The violations included exceeding sulfur dioxide, carbon monoxide, and nitrogen oxides emissions limits; exceeding hydrogen sulfide concentration limits; exceeding opacity and visible emissions standards; failing to meet certain operating parameters; violations due to causes other than power disruptions”.
Calgary, Alberta-based Suncor has not replied to a Rigzone request for comment emailed Thursday.
The refinery processes about 98,000 barrels a day of petroleum sourced from the Denver-Julesburg basin, according to Suncor. Ninety-five percent of the output is sold to the state, whose economy reaps $2.5 billion per year from the plant, Suncor says on its website.
“Suncor must pay at least $10.5 million toward penalties and projects as a result of air pollution violations from July 2019 through June 2021”, the CDPHE said. “This action holds Suncor accountable for past violations and requires the refinery to take steps to prevent future violations”.
Penalties accounted for $2.5 million. “Of this amount, about $1.3 million will fund projects to benefit disproportionately impacted communities through the state’s environmental justice grant program, and about 40 percent will go toward the state’s general fund”, it added referring to a grant created by the state’s 2021 Environmental Justice Act. “A small portion will go to the U.S. Environmental Protection Agency as required by a previous joint U.S. EPA/Colorado enforcement action”.
The rest of the enforcement package is for improvements to the facility “to minimize excess air pollution from recurring due to power-related causes”, the CDPHE said.
It also ordered Suncor to double the number of air pollution monitoring devices around the refinery under Colorado’s so-called fenceline monitoring program, which is contained in the state’s 2021 Air Toxics Act. Suncor’s Commerce refinery is one of four facilities covered by the fenceline monitoring program, which involves running air measurement equipment covering the facilities’ perimeter.
“The final fenceline monitoring plan includes double the number of air monitors compared to what Suncor submitted”, the CDPHE said. “The final plan ensures the monitoring will meet the state law’s requirement for continuous air monitoring and data sharing in near real-time.
“Colorado has also required Suncor to monitor and report on more air toxics than required by state law. State statute requires monitoring for hydrogen cyanide, hydrogen sulfide, and benzene. Suncor must also monitor and report for toluene, ethylbenzene, and xylenes when it implements the new fenceline monitoring plan”.
CDPHE Executive Director Jill Hunsaker Ryan highlighted in a statement, “This historic enforcement package, which includes both a penalty and required facility improvement projects, is the largest our agency has ever reached for a single facility for air pollution”.
CDPHE Air Pollution Control Division Director Michael Ogletree commented, “There are real consequences for air pollution violations – whether they be from Suncor or any other air pollution source in Colorado”.
“Today’s actions demonstrate that compliance with clean air laws is not optional”, Ogletree added.
Last year the federal Environmental Protection Agency (EPA) also imposed against Suncor a nearly $800,000 package under the national Clean Air Act involving the Commerce refinery. The package was a result of a settlement with Suncor over noncompliant fuel produced at the refinery.
“Suncor will pay a $160,660 civil penalty and has agreed to implement a supplemental environmental project which requires the company to spend at least $600,000 purchasing or subsidizing the purchase of electric lawn and garden equipment that will be provided to residents, schools, and local governments in the Commerce City/Denver area”, the EPA said in a statement September 6, 2023.
“The settlement resolves claims relating to the benzene content and Reid vapor pressure (RVP) of gasoline that Suncor produced”, the EPA explained. “In 2021, Suncor produced over 32 million gallons of gasoline at its Commerce City East Refinery with an average benzene concentration of 1.77 volume percent, which was above the maximum 1.30 volume percent standard. In June 2022, Suncor produced over 1 million gallons of summer gasoline at its Commerce City West Refinery with an RVP of 7.9 pounds per square inch (psi), which was above the 7.8 psi standard”.
Suncor had notified the EPA about both violations, the agency said.
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