Holly Refining and Marketing Company Settlement

(Washington, D.C. -- April 21, 2008) Holly Refining & Marketing has agreed to spend more than $17 million in new and upgraded pollution controls at its refinery in Woods Cross, Utah, and pay a $120,000 civil penalty, the Justice Department and U.S. Environmental Protection Agency announced today. The settlement, which resolves alleged violations of the Clean Air Act by Holly, is expected to reduce air pollution by more than 420 tons of harmful emissions annually.

On this page:

• Geography
• Industry Capacity
• Emission reductions
• Injunctive Relief
• Environmental Benefits
• Penalty
• Supplemental Environmental Projects
• State Partners

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Geography: One refinery:

Woods Cross, Utah

Industry Capacity:

Approximately 24,700 thousand barrels of oil/day
Less than 1% percent of U.S. domestic refining capacity

Emissions reductions:

Nitrogen oxide (NO_x) reduced by more than 106 tons per year
Sulfur dioxide (SO₂) reduced by more than 315 tons per year
Additional reductions of volatile organic compounds (VOCs), particulate matter (PM) and other pollutants

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Injunctive Relief:

More than $17.25 million will be spent on injunctive relief through 2013

FCCUs and Heaters and Boilers (NSR/PSD):

• FCCU NO_x limits of not more than 40 ppm (365-day) and 80 ppm (7-day).
• FCCU SO₂ limits of 25 ppm (365-day) and 50 ppm (7-day).
• Installation of NO_x and SO₂ continuous emission monitors.
• Installation of Ultra Low NO_x Burners (or equivalent technology) that are designed to achieve an emission rate of 0.020 to 0.040 lb NO_x/mmBTU for heaters and boilers greater than 40 MMBtu/hr.
• Particulate emissions limits of 0.5 pound per 1,000 pounds coke burned at the FCCU.

NSPS and Flaring:

• All flares, heaters and boilers subject to NSPS Subpart J.
• All sulfur recovery plants subject to NSPS Subpart J.
• No fuel oil burning except in limited circumstances.
• A "root cause" analysis for all future flaring events.
• Stipulated penalties for repeated causes of acid gas and tail gas flaring.

Benzene Waste Operations NESHAP:

• Total annual benzene (TAB) of less than 10 Mg/yr.
• Modified management of change procedures to ensure that new benzene streams are included in the TAB calculation.
• Conduct laboratory audits.
• Quarterly sampling and TAB calculation.
• Training for those who sample benzene.

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Leak Detection and Repair Program:

• Refinery-wide compliance with LDAR requirements.
• Training, including refresher courses, for refinery personnel with LDAR responsibility.
• Required LDAR compliance audits.
• Strict internal leak definitions (500 ppm for valves and 2000 ppm for pumps).
• Internal first attempt at repair at 200 ppm for valves.
• More frequent monitoring than required by regulation.

Environmental Benefits:

When all controls are installed, the settlement will result in substantial reductions of the following pollutants:

• NO_x , which can cause or contribute to a variety of health problems and adverse environmental impacts, such as ground-level ozone, acid rain, global warming, water quality deterioration, and
  visual impairment. Affected populations include children, people with lung diseases such as asthma, and exposure to these conditions can cause damage to lung tissue for people who work or exercise outside.

• SO₂ , which in high concentrations can affect breathing and may aggravate existing respiratory and cardiovascular disease. Sensitive populations include asthmatics, individuals with bronchitis or emphysema, children, and the elderly. SO₂ is also a primary contributor to acid deposition, or acid rain.

• VOCs, which -- along with NO_x -- plays a major role in the atmospheric reactions that produce ozone, which is the primary constituent of smog. People with lung disease, children, older adults, and people who are active can be affected when ozone levels are unhealthy. Ground-level ozone exposure is linked to a variety of short-term health problems, including lung irritation and difficulty breathing, as well as long-term problems, such as permanent lung damage from repeated exposure, aggravated asthma, reduced lung capacity, and increased susceptibility to respiratory illnesses such as pneumonia and bronchitis.

• PM, especially fine particles, contain microscopic solids or liquid droplets that are so small that they can get deep into the lungs and cause serious health problems. PM is linked to a variety of problems, including increased respiratory symptoms such as irritation of the airways, coughing, or difficulty breathing, decreased lung function, aggravated asthma, and premature death in people with heart or lung disease.

Penalty: $120,000

Supplemental Environmental Projects:

• $130,000 to purchase an emergency Mobile Command Post (MCP) for the use and benefit of the South Davis Metro Fire Agency, which provides emergency services to five cities in south Davis County, Utah.

State Partner: Utah