PHILADELPHIA — The U.S. Environmental Protection Agency (EPA) has come to a preliminary agreement involving a $4.2 million settlement with Philadelphia Energy Solutions, the owner of a significant East Coast refinery that was closed following a catastrophic explosion and fire in 2019.
The announcement regarding this settlement was made on Tuesday, and it will now enter a 30-day public comment period before the proposal is submitted for final court approval. Importantly, the company does not admit to any wrongdoing in this settlement, which is noted to be the highest amount ever requested for a refinery under a Clean Air Act provision that mandates the safe management of regulated and other potentially hazardous substances.
The EPA’s investigation revealed that Philadelphia Energy Solutions failed to recognize and analyze the risks associated with a pipe elbow in a hydrofluoric acid alkylation unit at their Philadelphia refinery. This pipe elbow ruptured as a result of “extensive” corrosion, significantly thinning the pipe wall to the point where it was as thin as a credit card since the installation took place back in 1973.
The incident on June 21, 2019, led to an explosion and fire that ultimately caused the refinery to close after operating for 150 years. At the time of its closure, it was the largest oil refining facility on the East Coast, with the capability to process 335,000 barrels of crude oil each day.
The EPA’s claim was filed in the U.S. Bankruptcy Court in Delaware, as the company declared bankruptcy shortly after the incident. The 1,300-acre site of the former refinery was sold in 2020 and is currently undergoing redevelopment into industrial and life sciences spaces. This area continues to operate under an intricate cleanup agreement overseen by the EPA alongside the Pennsylvania Department of Environmental Protection.
