BAYTOWN, Texas-The $81.25m ( 60.94m) lawsuit filed against ExxonMobil for alleged pollution violations at its Baytown complex in Texas could have major ramifications for the US refining and chemical industries, a director involved with the case said on Tuesday.
"I think it has potential to send shockwaves through the industry," said Luke Metzger, executive director with Environment Texas. "This is the largest [refinery] in the US.
"If we can get Exxon to clean up and dramatically reduce their upset emissions, I think that definitely sets a precedent for the whole industry to reduce their own emissions, as well as encourage federal regulators to take additional steps," he added at a press conference announcing the lawsuit.
Environment Texas and the Sierra Club are among the groups suing ExxonMobil, claiming that the Baytown complex has emitted more than 8m lb (3,600 tonnes) of pollutants into the air over the past five years.
Neil Carman, clean air programme director of the Sierra Club's Texas chapter, said the lawsuit, filed in federal court, accuses ExxonMobil of 2,500 clean air violations.
ExxonMobil's Baytown refinery, located about 25 miles east of Houston, leads the US with 560,640 bbl/day of capacity, according to the US Energy Information Administration (EIA).
Its downstream plants produce chemicals including benzene, butadiene (BD), butyl rubber, ethylene, orthoxylene (OX), paraxylene (PX), polypropylene (PP), propylene and toluene.
ExxonMobil officials said they intended to defend themselves against the lawsuit, saying that since 2001, the company had reduced upset/maintenance emissions by 89%, total emissions by 58%, and reportable air incidents by 62%.
"Over the last five years, the Baytown refinery and chemical plant, one of the nation s largest and most complex petrochemical facilities, has produced total annual emissions that are nearly 40% below the federal permit limits set by EPA [Environmental Protection Agency]," the company said.
ExxonMobil added that it had spent nearly $1.3bn in Baytown to improve environmental performance since 2001.
Carman, however, predicted a"landmark settlement case", adding that the groups were prepared to take the case to trial should ExxonMobil not quickly move to settle.
The groups said they twice notified ExxonMobil and regulatory environmental agencies of their intent to sue, once in November 2009 and a second time in July.
Carman blasted the flexible permit programme allowed by the Texas Commission on Environmental Quality (TCEQ), saying that ExxonMobil s pollution in Baytown would likely be far lower under a standard federal permit.
The EPA has said that such permits were illegal, adding that it continued to work with Texas regulators to bring the state's emissions laws in line with federal standards.
"I believe [ExxonMobil] got a sweetheart deal from the TCEQ, and that's why they're fighting tooth and nail to hang into them," Carman said.
The lawsuit is the third filed by the two groups. In April 2009, Shell reached a $5.8m settlement and agreed to reduce upset emissions by 80% within three years
More recently, Chevron Phillips Chemical in November announced a settlement in which it would give $2m to a local college and cap upset emissions by 85%.
($1 = 0.75)
"I think it has potential to send shockwaves through the industry," said Luke Metzger, executive director with Environment Texas. "This is the largest [refinery] in the US.
"If we can get Exxon to clean up and dramatically reduce their upset emissions, I think that definitely sets a precedent for the whole industry to reduce their own emissions, as well as encourage federal regulators to take additional steps," he added at a press conference announcing the lawsuit.
Environment Texas and the Sierra Club are among the groups suing ExxonMobil, claiming that the Baytown complex has emitted more than 8m lb (3,600 tonnes) of pollutants into the air over the past five years.
Neil Carman, clean air programme director of the Sierra Club's Texas chapter, said the lawsuit, filed in federal court, accuses ExxonMobil of 2,500 clean air violations.
ExxonMobil's Baytown refinery, located about 25 miles east of Houston, leads the US with 560,640 bbl/day of capacity, according to the US Energy Information Administration (EIA).
Its downstream plants produce chemicals including benzene, butadiene (BD), butyl rubber, ethylene, orthoxylene (OX), paraxylene (PX), polypropylene (PP), propylene and toluene.
ExxonMobil officials said they intended to defend themselves against the lawsuit, saying that since 2001, the company had reduced upset/maintenance emissions by 89%, total emissions by 58%, and reportable air incidents by 62%.
"Over the last five years, the Baytown refinery and chemical plant, one of the nation s largest and most complex petrochemical facilities, has produced total annual emissions that are nearly 40% below the federal permit limits set by EPA [Environmental Protection Agency]," the company said.
ExxonMobil added that it had spent nearly $1.3bn in Baytown to improve environmental performance since 2001.
Carman, however, predicted a"landmark settlement case", adding that the groups were prepared to take the case to trial should ExxonMobil not quickly move to settle.
The groups said they twice notified ExxonMobil and regulatory environmental agencies of their intent to sue, once in November 2009 and a second time in July.
Carman blasted the flexible permit programme allowed by the Texas Commission on Environmental Quality (TCEQ), saying that ExxonMobil s pollution in Baytown would likely be far lower under a standard federal permit.
The EPA has said that such permits were illegal, adding that it continued to work with Texas regulators to bring the state's emissions laws in line with federal standards.
"I believe [ExxonMobil] got a sweetheart deal from the TCEQ, and that's why they're fighting tooth and nail to hang into them," Carman said.
The lawsuit is the third filed by the two groups. In April 2009, Shell reached a $5.8m settlement and agreed to reduce upset emissions by 80% within three years
More recently, Chevron Phillips Chemical in November announced a settlement in which it would give $2m to a local college and cap upset emissions by 85%.
($1 = 0.75)
