US oil giant forks out on pollution fines and new controls

US oil giant Sinclair Oil Corp has been fined $3.8 million in air pollution penalties, and has forked out a further $10.5 million (£6.7 million) for pollution-control equipment as a consequence.

Tight regulations in the US has led to several high-profile companies being hit with fines over their air pollution controls. Sinclair Oil Corp is the latest scalp, and is unlikely to be the last, as the Obama administration looks to crack down on high pollution-emitting companies.

The oil giant is set to pay out close to $15 million (£9.5 million) for air pollution emitted at its Wyoming refineries to settle allegations it exceeded air pollution limits, US Environmental Protection Agency recently announced, with the settlement being agreed after the company failed to meet the terms of a 2008 consent decree reached with the EPA and the US Justice Department.

Nitrogen oxide emission limits in Sinclair and Evansville where breached. The Sinclair refinery produces 74,000-barrels-per-day (bpd), and Evansville is capable of 24,500-bpd.

According to the EPA announcement, the company also failed to comply with requirements to operate and maintain a flare gas recovery system at the Sinclair refinery, Reuters reported. As part of the settlement, the company has agreed to install a new selective catalytic reduction system to control nitrogen oxide emissions and upgrade the flare gas recovery system to meet sulfur dioxide emissions limits.

A company spokesman recently said that Sinclair "has worked in good faith with the government to reach agreement on the consent decree and the company has resolved, or is in the process of resolving, items of concern."

Sinclair has been under significant pressure to invest in pollution controls, agreeing to pay a $2.45 million penalty and spend more than $72 million on refineries in the 2008 consent decree. The latest settlement is subject to a 30-day period for public comments and final court approval.

Posted by Claire Manning