More Money Than God

ExxonMobil and the Oil Barons of Houston, Texas
The Human toll of their pollution binge

This report is one in a series focusing on the human toll of the oil industry's "collateral damage" caused by failure to comply with the Federal Clean Air Act and violations of the New Source Review program. The Bush Administration has proposed as part of its multi-component National Energy Plan a review of a key section of the Clean Air Act New Source Review (NSR) program.

This review is to be completed by August 17th. Residents of refinery communities and public interest organizations are concerned that the review and accompanying talk of "streamlining" the enforcement process is just the first step in an attack on both existing and future clean air enforcement efforts. The NSR program is important to protecting public health because it requires that all major new stationary sources of pollution, including existing plants that expand their operations, comply with strict emission standards. However, the program only works if it is enforced.

For years, refineries and power plants violated New Source Review, making major modifications and increasing their emissions without following the law. Recent EPA studies showed that more than fifty percent of the nation's refineries were violating the Clean Air Act. In June of this year, the Reuters News agency quoted an EPA official as saying that more than 80% of the nation's refineries have violated New Source Review.

Because of the high rate of New Source Review violations, the EPA has, in the last two years, initiated enforcement actions against some of these facilities. These actions have begun to bear fruit - forcing refiners to invest in long-needed pollution controls and giving back to communities with investments in local environmental projects.

The personal accounts told in this report, and others in the series, document the importance of strengthening enforcement of the law at our nation's refineries, not weakening it. The Bush Administration's effort to rollback New Source Review creates a direct threat to the health of millions of people who live near refineries, our nation's biggest source of toxic pollution. The millions of people who live near refineries in the United States risk becoming part of President George W. Bush's Toxic Legacy unless enforcement is strengthened, not weakened.

Texas SEED Coalition
611 South Congress, Suite 200, Austin, Texas, 78704
512-479-7744
www.seedcoalition.org
www.refineryreform.org

This report made possible by contributions from Clear the Air and the League of Conservation Voters Education Fund. Thanks to groundWork of South Africa for their back cover poster. Thanks to Dr. Neil Carman, Lone Star Sierra Club of Texas for his technical analysis of Texas and Louisiana refineries.

For citations, please see the Houston area report, "More Money Than God" or visit the Texas SEED Coalition on the web at: www.refineryreform.org.

More Money Than God

"We have more money than God and we'll win. They can't talk to us about regulations. They don't like what we are doing-let them sue us."
(Overheard statement by a corporate lawyer for one of Houston's oil companies, 1998)

LaNell Anderson

Why is My Family So Sick?
Why are We Dying Prematurely?

We have never had cancer in our family. Paternal and maternal grandparents lived long productive lives and had large families. All that has changed.

In 1985, my husband's daughter had a baby girl, Alyssa, who was born with a rare liver disease.

She died when she was six months old. We were devastated.

In 1986, my Mother became seriously ill, and, after seeking medical help for almost a year, she was finally diagnosed with bone cancer. She died May 26, 1987, after a long, horrific suffering. Her home was less than half a mile from the largest producer of styrene in the world. Styrene is a known cause of bone cancer.

In 1988, I was diagnosed with rheumatoid arthritis and spent the next year in bed unable to live a normal life.

My older sister was diagnosed with Crohn's disease. My younger sister was diagnosed with a rare form of rheumatoid arthritis that affects the cellular structure of her eyes.

In 1991, my Father died from emphysema. He was not a daily smoker.

In 1992, my husband's youngest granddaughter, Sarah, was diagnosed with juvenile rheumatoid arthritis.

His daughter was expecting her second child and gave birth to a son, Troy, who was diagnosed immediately with severe asthma and. as a baby. was constantly on a breathing machine.

When I cannot sleep some nights, I wonder in those wee hours what I could have done and exactly how I failed to adequately protect my family. We are good upstanding citizens. and we love our families. We just can't love them too long.

When I was young. we began to smell the odors from Pasadena, so laughingly referred to as "Stinkadena." When we asked questions. some replied "Ah, that is the smell of money." No one ever thought of or discussed health hazards from the chemical air emissions. In 1901. the Spindletop oil strike made history and was heralded as the largest oil strike in the U.S. Humble Oil decided to come to Texas to drill for some of that oil.

Of course they discovered an even larger oil field. Where else, but Humble, Texas, a Houston suburb? Then lo and behold, Humble Oil also discovered oil in Goose Creek, better known today as Baytown, where they now have a refinery and two chemical plants that occupy approximately 3,000 acres.

In the 1940's, the petrochemical business appeared overnight, it seemed, to take advantage of producing down stream products from the oil refiners' left-over wastes. In 1970, some 200 oil-related industries relocated to the Houston region.

After my father decided to move our family to Houston in 1957, we settled in a suburb called Home Owned Estates. We lived in a nice middle-class neighborhood of brick homes and attended schools ranked by the state as number one in academics. You see, the taxes paid to school districts by the huge profit-making oil industries allowed them to hire the best teachers and pay the highest salaries. There was never any mention by anyone that we were moving into a "dangerous" neighborhood. We graduated and went off to live our lives and create families of our own.

Around 1970, we all began to notice a marked change in the air in the old neighborhood. First it was mostly bad odors at night, so we just wouldn't sit outside any longer. We made sure we went inside in our air-conditioned homes so we couldn't smell the bad odors. The problem turned into bad chemical odors all the time and chemical deposits on our cars and on our homes.

In the mid-1970's, a group of citizens concerned about the quality of the water in the Houston Ship Channel declared that body of water dead and ceremoniously threw funeral wreaths into the water during one demonstration. The group was led by teachers from one of the local colleges who discovered that nothing could live in that water.

Because I had the misfortune of growing up in Houston, with no disclosure of the health-related hazards of living in the area, I will probably die in my mid-60's.

Yes, I had cancer in 1998.

Recently, a man was sentenced to three years in jail for throwing a dog into oncoming traffic, killing the dog. Where is the justice for my family and the thousands of families like mine that have suffered from being thrown to a toxic stew of industries' second-hand smoke?

How many must suffer, and how many must die before we change the cost of doing business in Houston, Texas for the oil industry?

Citizen Speaks Out for Her Family and Community

In 1986, my Mother became seriously ill with bone cancer. In 1988, I was diagnosed with rheumatoid arthritis and spent the next year in bed unable to live a normal life..

Gulf Coast Gasoline Alley
Refinery Survey Finds Expansions
Without Environmental Protections

The review reveals that eleven refineries (84%) had carried out major expansions in at least one key refinery area while the other two refineries are conducting expansions, which means that all thirteen- 100%-will have expanded in the last decade.

A brief review was conducted of a key refinery rating factor - atmospheric crude distillation capacity in barrels per day - at thirteen Texas-Louisiana refineries between 1993-2001 (comparing January 1, 1993 National Petroleum Refiners Association data to January 1, 2001 Department of Energy data; 1, 2), since an upgrade in this area has the potential to trigger New Source Review (NSR) requirements by significantly increasing criteria and toxic air emissions. The review reveals that eleven (84%) had carried out major expansions in at least one key refinery area while the other two refineries are conducting expansions, which means that all thirteen -100% -will have expanded in the last decade. Certainly, other refinery production areas may have been expanded at the same time as the atmospheric crude distillation units, but the other areas were not evaluated here. Major refinery NSR modifications have probably occurred prior to 1993 which needs to be evaluated further, since U.S. refinery capacity has increased by 27% since the 1970's without any new grassroots refineries being built in the last 20 years.

Seven of nine Houston-Beaumont-Port Arthur, Texas refineries made significant atmospheric crude distillation expansions in the 1990's and increased capacity by an average of 16% for a combined total of 320,000 barrels per day (bpd) of crude oil, and all four Lake Charles-Norco, Louisiana refineries expanded the same crude units by an average of 15% for a 103,500 bpd total. As part of a petroleum sector enforcement effort launched several years ago by the EPA, four of the refineries have been cited for NSR violations and it's possible that similar violations may have occurred at the other plants. Another Houston refinery was cited in the 1980's by Texas officials for violating NSR requirements and paid a fine in 1991.

The reason that oil refineries are under intense scrutiny, more than the chemical industry, for violations of NSR is that refineries have not had to seek permits to significantly retool in recent decades in order to make new products as much as the chemical industry has done. In Texas, for example, the chemical industry was heavily permitted at more than 80% while many refineries tended to be more heavily grandfathered than permitted. Confirmed refinery NSR violators are identified next and potential refinery NSR violators are listed based on significant refinery expansions since 1993. Based on the obvious potential for NSR violations resulting from significant refinery expansions at many Texas and Louisiana refineries during the 1990's alone, EPA needs to continue its refinery enforcement efforts in Texas, Louisiana and other states.

ExxonMobil Baytown: "The EPA violation notice alleges that a major plant unit had been upgraded in 1988 and a second refinery unit upgraded in 1980 without the proper NSR permits".

I. Houston, Texas
Refineries Expand While Communities Suffer

Four of five Houston-area refineries performed major expansions in the 1990's by an average of 14% or a combined 170,300 bpd from 1,047,900 bpd to 1,218,200 bpd and a fifth refinery is under-going a major expansion. Five major oil refineries are located the Houston Ship Channel and ranked by their crude capacity: 1) ExxonMobil's Baytown refinery complex, 2) Deer Park Refining's Deer Park refinery complex, 3) Lyondell-Citgo's Houston refinery, 4) Valero's Houston refinery, and 5) Crown Central Petroleum's Pasadena refinery. All five plants were listed in a 1997 Texas Emission Inventory as operating major grandfathered units. ExxonMobil's and Lyondell-Citgo's refineries possessed the largest criteria pollutant volumes that had avoided permit reviews and therefore may have avoided New Source Review at the grandfathered or even the permitted units.

ExxonMobil's Baytown refinery complex expanded 28% to 507,800 barrels/day. EPA-confirmed NSR violator ExxonMobil operates its Baytown flagship refinery rated at 507,800 barrels/ day capacity and is the largest in the nation. ExxonMobil greatly expanded the Baytown refinery by nearly 28% (111,800 barrels/day) from 396,000 bpd to 507,800 bpd (January 1, 2001 DOE report, 1, 2) and this is one of the largest modern U.S. refining expansions in the last decade. Exxon-Mobil is under pending EPA enforcement action for violating NSR requirements in the late 1980's and, more recently, a company official testified to Congress that ExxonMobil was basically seeking to have the violations and enforcement action essentially dropped. ExxonMobil may be released from a multimillion-dollar pollution fine at its Baytown refining complex if the EPA and the new Bush administration listen to the company's plea to halt a major federal anti-pollution initiative at the nation's oil refineries.

EPA issued a formal "notice of violation" (NOV) January 19, 2001 to ExxonMobil's Baytown refinery. The NOV letter, a second step in the enforcement process after the initial investigation and which could lead to possible legal action and fines, covers the last 12-13 years of alleged illegal changes. The EPA violation notice alleges that a major plant unit had been upgraded in 1988 and a second refinery unit upgraded in 1989 without the proper NSR permits and associated air pollution- control equipment required under the Clean Air Act. A "significant" increase in emissions occurred at the unit as a result for nitrogen oxides above the NSR 40-ton per year threshold limit in a severe ozone nonattainment region, the EPA's NOV letter indicated. Nitrogen oxide is the chief pollutant targeted in Houston's new smog-reduction plan to reach attainment by 2007.

From the EPA's and the DOJ's March 22, 2001 information: "Under today's settlements, the refiners will cut nitrogen oxide, sulfur dioxide and particulate emissions from the nine refineries by more than 60,000 tons a year, which will also benefit workers and local communities by including improved safety measures to reduce the risk of accidental release of pollutants."

When the two ExxonMobil major refinery projects that triggered the allegations were initiated, the Texas Air Control Board (a predecessor of TNRCC) performed a permit review of the projects. Now, TNRCC officials are studying the EPA violation notice issued in January and have not concluded if they will launch a separate enforcement action involving the same alleged violations, which more typically happens in criminal environmental cases. The alleged violations at ExxonMobil Baytown, like many of those at other refineries targeted in the federal enforcement initiative, involve the EPA's NSR rules' intent to prevent deterioration of an area's air quality as a result of economic expansion.

Shell's Deer Park refinery expanded 28% to 274,900 barrels/day. EPA-confirmed NSR violator Deer Park Refining (formerly Shell Oil) operates its Deer Park refinery currently rated at 274,900 barrels/day capacity. The Deer Park refinery expanded by 28% (59,000 barrels/day) from 215,900 bpd (1993) to 274,900 bpd (2001). Shell was heavily grandfathered until 1998, when it applied for and received a ten-year flexible air permit to upgrade the whole refinery and bring older units under permits for the first time. But in a March 2001 EPA settlement for Clean Air Act violations including the Deer Park plant and eight other refineries in five states, Shell and other companies involved in joint endeavors agreed to spend $400 million to cut air pollution and pay $9.5 million in fines and $5.5 million for community environmental projects. Many of the violations involve NSR allegations although a public concern is that the EPA may not have discovered all possible CAA violations at the refineries due in part to interest in settling the cases and expediting pollution control measures. From the EPA's and the DOJ's March 22, 2001 information: "Under today's settlements, the refiners will cut nitrogen oxide, sulfur dioxide and particulate emissions from the nine refineries by more than 60,000 tons a year by using innovative technologies. Improved leak detection and repair practices and other pollution-control upgrades will significantly reduce emissions of smog-causing volatile organic compounds and benzene, a known carcinogen. The agreements will also benefit workers and local communities by including improved safety measures to reduce the risk of accidental release of pollutants."

Lyondell-Citgo's East Houston refinery operates at 265,000 barrels/day. Potential NSR violator Lyondell-Citgo Refining operates an East Houston refinery. Due to a state-permitted major expansion under a ten-year flexible air permit received in 1999 from the Texas Natural Resource Conservation Commission (TNRCC), Lyondell-Citgo has temporarily slowed operations by about 5% (15,000 barrels/day) from 265,000 (1993) to 260,350 (2001). refinery emissions are authorized to decrease from around 10,000 tons per year in 1997 to 7,000 tons by 2009, or a 30% decrease of plant-wide criteria emissions from the upgrading of the plant and.replacing older units with newer ones. Lyondell-Citgo's criteria emissions of nitrogen oxide, sulfur dioxide and particulate matter need to be evaluated to determine if NSR violations occurred during the refinery expansions in the 1980's and 1990's.

Valero's East Houston refinery expanded 2% to 72,500 barrels/day. Potential NSR violator Valero operates a refinery in East Houston. The refinery has expanded by 2% (1,500 barrels/day) from 71,000 bpd (1993) to 72,500 bpd (2001).

Grandfathered units are being permitted under a ten-year flexible state permit and a few reductions may occur. refinery emissions were authorized to decrease slightly from around 7,000 tons per year in 1997 to a lower level by 2009. Valero's criteria emissions of nitrogen oxide, sulfur dioxide and particulate matter should be reviewed to deter-mine if NSR violations transpired during the refinery expansions.

Crown Central Petroleum's Pasadena refinery expanded 3% to 103,000 barrels/day. Confirmed NSR violator Crown operates its Pasadena refinery currently rated at 103,000 barrels/day capacity. Crown modestly expanded the refinery by 3% from 100,000,000 bpd (1993) to 103,000 bpd (2001). Crown Central Petroleum was cited for NSR violations in 1988 by the Texas Air Control Board and fined $455,825 on August 30, 1991. Crown had made major illegal modifications to its fluid catalytic cracking unit back around 1981. The refinery upgrade increased crude oil handling capacity while increasing air emissions. Crown failed to apply for or obtain an NSR permit prior to making the modifications. Several grandfathered process units (more than 30% in 1997) currently continue to be operated at the plant while the fluid catalytic cracking unit and sulfur recovery unit are permitted.

Source Cites: The 1993 refinery capacity data is from Table 3.4, pages 14-18, which shows January 1, 1993 National Petroleum Refiners Association data listed in a November 1995 Environmental Defense Fund Report "Ranking Refineries: What Do We Know About Oil Refinery Pollution From Right-to-Know Data?" ED's website is: http://www.edf.org January 1, 2001 refinery atmospheric crude distillation capacity in barrels per day is listed on a Department of Energy website: http://www.eia.doe.gov/oil_gas/ petroleum/info_glance/refineryops.html and go to US refinery capacity for 2001 at: ftp://ftp.eia.doe.gov/pub/oil_gas/petroleum/data_publications/ refinery_capacity_data/data/refcap01.dbf Department of Justice Consent Decrees for alleged violations of the Clean Air Act at various Motiva's, Deer Park's and Equilon's refineries including Texas and Louisiana facilities can be found at: March 22, 2001 - http://www.usdoj.gov/enrd/pressroom.htm March 22, 2001 - http://www.usdoj.gov/enrd/motivacd.htm Motiva's Consent Decree: "WHEREAS, the United States' Complaint alleges that Motiva has been and is in violation of certain provisions of the Clean Air Act (the "CAA"), 42 U.S.C. §7401 et seq., and its implement-ing regulations, at the four refineries identified in Paragraph 5." EPA Region 6 sent a notice of violation letter dated January 19, 2001, citing section 113 (a)(1) of the federal Clean Air Act, to ExxonMobil Corporation's M.W. Scoggins, executive vice president in Houston, Texas, for two alleged NSR violations at the Baytown refinery, pages 1-10. Bill Dawson, Houston Chronicle, June 18, 2001, article - ExxonMobil seeks to get out of penalty: EPA asked to drop fine in millions, ease crackdown on Baytown facility. Houston Chronicle's website: http://www.chron.com TNRCC press releases at the following website: http://www.tnrcc.state.tx.us/exec media/press/05-01mobiloil.html Texas Natural Resource Conservation Commission 1997 summary table of industry emissions inventory. TNRCC's website: http://www.tnrcc.state.tx.us Westlake, Louisiana refinery expansion data: http://www.hydrocarbons-technology.com/ projects/westlake/index.html Lakes Charles, Louisiana refinery information on American International Petroleum Corporation's plant: http://www.hydrocarbons-technology.com/ projects/lakecharles/index.html

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