EPA Reaches USD 4.2 Million Settlement Following 2019 Explosion at Philadelphia Refinery

The US Environmental Protection Agency (EPA) has reached a preliminary agreement with Philadelphia Energy Solutions, the former operator of a significant East Coast refinery. This settlement, valued at USD 4.2 million, follows an explosion and fire in 2019 that led to the refinery's closure. The agreement was made public on Tuesday, and a 30-day period for public comments will precede any final court approval.

The EPA's claim was filed in the US Bankruptcy Court in Delaware after the company declared bankruptcy post-explosion. The site, spanning 1,300 acres or 526 hectares, was sold in 2020. It is currently being transformed into industrial space and life sciences laboratories under a detailed cleanup plan overseen by the EPA and Pennsylvania Department of Environmental Protection.

Settlement Details and Public Involvement

The company has not admitted liability as part of this settlement. The EPA stated that this is the largest penalty ever pursued for a refinery under the Clean Air Act. This regulation mandates that owners and operators manage hazardous substances safely. The public will have a chance to comment on the settlement before it is potentially approved by the court.

The EPA discovered that Philadelphia Energy Solutions failed to identify and evaluate risks associated with a pipe elbow in a hydrofluoric acid alkylation unit at the Philadelphia refinery. This pipe elbow ruptured due to severe corrosion, reducing its wall thickness to that of a credit card since its installation in 1973.

Impact of the Explosion

The explosion and subsequent fire on June 21, 2019, resulted in the permanent closure of the refinery. At its peak, it was the largest oil refining facility on the East Coast, processing 335,000 barrels of crude oil each day. The incident marked the end of its 150-year operational history.

Philadelphia Energy Solutions' bankruptcy filing followed shortly after the explosion. The site where the refinery once stood is undergoing redevelopment into industrial space and life sciences labs. This transformation is part of a complex cleanup agreement managed by both federal and state environmental agencies.

This tentative settlement underscores the importance of adhering to safety regulations in managing hazardous substances within industrial operations. The EPA's actions highlight their commitment to enforcing these standards to prevent similar incidents in the future.