PHILADELPHIA — A tentative settlement amounting to $4.2 million has been reached between the U.S. Environmental Protection Agency (EPA) and Philadelphia Energy Solutions, a company that managed a significant East Coast refinery that was closed following a catastrophic explosion and fire in 2019.
The agreement was revealed in a statement released on Tuesday, and it will be open for public commentary for 30 days before it can move forward for final approval in court. Notably, the company involved does not acknowledge any responsibility in the context of this settlement. The EPA highlighted that this settlement marks the largest figure ever pursued for a refinery violation related to the Clean Air Act, a regulation that mandates the safe management of hazardous substances by refinery operators.
Investigations by the EPA indicated that the company did not adequately identify or evaluate the risks associated with a pipe elbow in a hydrofluoric acid alkylation unit at the Philadelphia refinery. The failure was attributed to the pipe elbow rupturing due to severe corrosion, which had significantly thinned the pipe wall since its installation back in 1973, reducing its thickness to that of a credit card.
The catastrophic incident, which took place on June 21, 2019, led to the closure of the refinery, which had operated for 150 years prior to the event. At its peak, this facility was the largest oil refining complex on the East Coast, capable of processing approximately 335,000 barrels of crude oil each day.
The EPA’s claim was lodged in U.S. Bankruptcy Court in Delaware, as Philadelphia Energy Solutions declared bankruptcy shortly after the explosion. The site of the 1,300-acre refinery was sold in 2020 and is currently undergoing redevelopment into industrial facilities and life sciences laboratories. The area remains under an intricate cleanup plan governed by both the EPA and the Pennsylvania Department of Environmental Protection, ensuring that the site is managed safely and effectively.
