Suit against Chalmette Refining gets OK
Violations ruling lets it go forward
Thursday, February 10, 2005

By Sandra Barbier
Times-Picayune
St. Bernard/Plaquemines bureau

A federal judge has ruled that Chalmette Refining LLC violated the federal Clean Air Act on 34 occasions, discharging more pollution into the air than its state permits allow.

In the decision issued Friday, U.S. District Judge Sarah S. Vance also ruled that two environmental groups, St. Bernard Citizens for Environmental Quality and the Louisiana Bucket Brigade, have the right to sue the refinery to enforce federal environmental laws. Although the decision on the groups' year-old lawsuit stopped short of fining the refinery, jointly owned by ExxonMobil Corp. and Petroleos de Venezuela, the company could eventually be ordered to pay as much as $27,500 per day for each violation; the money would go to the U.S. Treasury.

"I'm very well-satisfied" with the ruling, said Kenneth Ford, a Chalmette resident who lives near the refinery and is president of Citizens for Environmental Quality.

After years of complaints to state and federal agencies about odors and other emissions, Ford said, the ruling is "like first step on the moon. The first step is a big one."

Chalmette Refining spokeswoman Nora Scheller said the violations were "self-reported" by the refinery to the state, as required by law.

The suit said they have occurred since March 1999. Scheller said the incidents happened between March 12, 2001, and Oct. 24, 2003.

Scheller also said the refinery has spent more than $100 million to improve the refinery's environmental performance over the past two to three years.

She said the improvements have reduced emissions "quite a bit," but couldn't comment further on the ruling or provide more detailed information, citing the litigation.

Vance's ruling said the company failed to provide evidence that it made changes that would put it in compliance with the Clean Air Act, indicating "a real threat that (the refinery) will continue" to violate the law.

Bruce Hammatt, an administrator for the state Department of Environmental Quality, said the state has been negotiating a settlement with the refinery for two years for improvements that will cost millions of dollars. He said the negotiations are taking longer than hoped.

Hammatt also said Vance's ruling that the refinery violated the law came as no surprise.

"They were reported as violations" by the company, he said. "I'm not sure where that leaves us . . . We all agree they were violations."

But Adam Babich, director of the Tulane Environmental Law Clinic, which represents the environmental groups, said Vance's ruling is crucial. The judge found the refinery liable for the violations, and can now determine what penalties should be applied, he said.

"On a scale from one to 10, it's a nine," Babich said of the ruling. "Holding someone responsible for the pollution is big," as well as upholding the residents' "right to do something about it."

Vance also ruled the residents do not have to prove that their health was harmed by the emissions, or that the refinery is the only source of the pollution, to file suit.

She said the foul odors and soot the groups complained about are sufficient reasons for them to sue under the Clean Air Act.

Ford and another Chalmette resident, Lawrence Novo, complained that odors from the refinery prevented them from doing activities out of doors, and that soot covers their property.

Babich said there are other complaints the ruling did not address, including charges by the residents that there have been benzene leaks from tanks, that the company inadequately monitors the flares it uses to burn some emissions, and that it failed to report information required by the federal Emergency Planning and Community Right to Know Act.

Scheller has said in the past that the company complies with all state and federal regulations.

She said the company had hoped to win the part of the case that Vance ruled on, but added, "we're going to continue to present our case. There are still many issues that have to be addressed."

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Residents' group gets legal victory over Chalmette Refinery

Wednesday, February 9, 2005
Associated Press

CHALMETTE, La. -- Residents here have won a legal victory in a drive to get a nearby refinery to clean up its operations or face being closed down.

U.S. District Judge Sarah Vance in New Orleans ruled that the plaintiffs have the legal right to bring the suit against Chalmette Refining LLC. and that the plant was liable for 34 alleged violations of the Clean Air Act. The refinery is owned by ExxonMobil and Petroleos de Venezuela.

Vance's Friday ruling was significant also because the Chalmette suit is considered a test case of a provision of the Clean Air Act called "a citizens enforcement suit." Under that provision, people can bypass government agencies and sue to get alleged polluters to clean up their operations.

The suit was filed a year ago by the St. Bernard Citizens for Environmental Quality and the Louisiana Bucket Brigade, an environmental group that encourages people to independently monitor emissions from refineries in Louisiana.

The suit alleges that the plant's frequent equipment breakdowns have led to violations of its permitted hourly emissions limits and that its storage tanks release too much benzene. The suit also charges that the refinery has failed to document discharges and operate and monitor the plant's flares properly.

The suit notes that within three miles of the refinery there are 20 schools, two hospitals and six retirement communities. The suit, filed in federal court in New Orleans, asks the court to issue injunctions forcing the refinery to fix its problems and get into compliance or close down.

The refinery insists that it is in compliance with state and federal laws and standards.

Vance ruled that the plaintiffs showed that they were affected by the refinery's operations and that they suffered from foul odors and soot coming from the refinery. The judge shot down Chalmette Refining's argument that the residents failed to show that the refinery was the source of problems.

The other part of the ruling dealt with 34 alleged violations of the Clean Air Act. These incidents of "unauthorized discharges" from the refinery were reported by the company itself to state regulators between March 2001 and October 2003. Chalmette Refining did not challenge the plaintiffs request for a ruling on this matter without a trial.

Nora Scheller, a spokeswoman for Chalmette Refining, would not discuss the refinery's legal strategy other than to say "We will continue to present our case as this litigation proceeds."

The plaintiffs said Vance's ruling showed that the judge thought the refinery would likely continue polluting.

"The Court's emphasis on the potential for ongoing violations corroborates community members' experiences, as foul chemical odors continue to dominate their neighborhood," a statement from the Louisiana Bucket Brigade said.

The plaintiffs, who are represented by the Tulane Environmental Law Clinic, also said that the refinery continues to spew pollution. According to the groups, the refinery reported a "preventable flaring incident" as recently as December.

The groups want the refinery to install air monitors to ensure that it does not pollute anymore.

Refinery officials said there are plans to install over $100 million in "environmentally driven projects."

A trial date of Feb. 13, 2006 has been set.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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Judge slaps Chalmette Refining in pollution ruling

CityBusiness staff report

NEW ORLEANS — On Thursday, U.S. District Court Judge Sarah Vance granted a plaintiff’s motion for summary judgment in a case brought against Chalmette Refining by a coalition of environmental groups.

"The documented violations indicate that Chalmette Refining repeatedly violates the Clean Air Act and that, unless some action is taken to prevent the illegal conduct, there is a real threat that such violations will continue to occur," Vance said.

Chalmette Refining claimed residents could not prove the refinery was the sole source of foul neighborhood odors surrounding the refinery or that it was the source of soot on their homes. The judge rejected Chalmette Refining’s argument as without merit.

The ruling allows the group to file suit and affirms Chalmette Refining is liable for damages.

Chalmette Refining is a 50-50 joint venture between ExxonMobil and Venezuelan state-owned oil company Petroleos de Venezuela, S. A. The motion detailed 34 instances in which the refinery reported flaring toxic chemicals which Chalmette Refining admitted it could have prevented, according to court documents.

A Chalmette Refining report to the state Department of Environmental Quality detailed a preventable flaring incident as recently as Dec. 16. Repeated preventable flaring incidents violate the Clean Air Act.

The community groups want air monitors surrounding the refinery.

"It is time for ExxonMobil to stop making excuses," said Anne Rolfes, director of the environmental group Louisiana Bucket Brigade. "Refinery officials need to sit down with us and make a plan to install the real-time air monitors that we have been advocating for over a year."

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