PCS Nitrogen Fertilizer, L.P. Settlement Information Sheet

(Washington, DC – July 14, 2022) - The U.S. Environmental Protection Agency (EPA), the U.S. Department of Justice (DOJ), and the Louisiana Department of Environmental Quality (LDEQ) announce a settlement with PCS Nitrogen Fertilizer, L.P. (PCS Nitrogen), involving PCS Nitrogen’s former phosphoric acid fertilizer production facility located in Geismar, Louisiana (Geismar Facility or Facility). The settlement resolves a series of alleged violations of the Resource Conservation and Recovery Act (RCRA), which provides universal guidelines for how hazardous waste must be stored, managed, and disposed. The RCRA settlement will ensure that PCS Nitrogen treats over 1 billion pounds of hazardous waste and takes steps to ensure that the short and long-term closure of its Facility is protective of the environment.

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Overview

PCS Nitrogen’s Geismar Facility consists of a main plant, including the former sulfuric acid, phosphoric acid, and fertilizer manufacturing plants, and phosphogypsum stacks (Gypsum Stacks) and associated surface impoundments. The Gypsum Stacks and associated surface impoundments together are referred to as the Gypsum Stack System. The Facility, originally built by Allied Signal Corp., has operated since 1967 and encompasses approximately 1,050 acres. Gypsum stacking began in the early 1970s. PCS Nitrogen continued disposal of wastes from the main plant in the Gypsum Stacks, which are located two miles north of the main plant between Highway 30 & Highway 3115. The phosphoric acid and sulfuric acid plants ceased operations in 2018 and as such, the Gypsum Stacks also ceased receiving phosphogypsum generated from phosphoric acid production at that time. Closure wastes from decommissioning the phosphoric acid plant were also disposed in the Gypsum Stacks, in accordance with LDEQ permits and approvals.

From at least February 2004 until December 2012, a neighboring third-party generator (Innophos, Inc.) routinely piped and/or shipped its hazardous waste streams (Raffinate and Dearsenate) to the Geismar Facility, where PCS Nitrogen stored approximately 20,000 gallons of Dearsenate per day and disposed of both hazardous waste streams, either directly or indirectly, into its Gypsum Stacks.

In 2012, and pursuant to a Consent Decree entered on October 3, 2017 (Civil Action No. 17-26-SDD-RLB), Innophos, Inc. ceased sending these hazardous wastes to the PCS Nitrogen Facility for disposal.

From 2018 to present, PCS Nitrogen decommissioned and dismantled the phosphoric acid manufacturing plant, initiated closure of the Gypsum Stack System, repaired certain Gypsum Stack System liners, and installed a water treatment system. Work completed to date at the Geismar Facility has been done pursuant to the approved solid waste closure plans under Solid Waste Permit Nos. P-0201, P-0201R1, and P-0201R2.

Violations

In February 2004, EPA and LDEQ conducted an on-site RCRA inspection of the Geismar Facility which included a comprehensive review of the Facility’s processes and operations and corresponding waste generation, discussions with Facility personnel, sampling of waste streams, and analysis of the waste samples. EPA performed subsequent re-inspections of the Facility, including in April 2005 and December 2017.

In the complaint lodged with the court, Plaintiffs allege the following RCRA violations:

• Failure to make hazardous waste determinations (LAC 33:V.1103);
• Failure to perform land disposal restriction determinations (LAC 33:V.2245);
• Storage of hazardous waste (Dearsenate) without a permit or interim status (LAC 33:V.303.B, 305 and 501);
• Treatment, storage, and disposal of hazardous waste in the Gypsum Stack System, surface impoundments, and tanks, and leaking/disposal of hazardous wastes outside the Gypsum Stack System, without a permit or interim status (LAC 33:V.303.B, 305, and 501);
• Failure to submit required hazardous waste generation annual reports to the LDEQ (LAC 33:V.1529.D);
• Failure to establish an adequate cost estimate for closure of all units that received hazardous waste (LAC 33:V.3705.A);
• Failure to establish adequate financial assurance for closure of all units that received hazardous waste (LAC 33:V.3707);
• Failure to prepare an adequate cost estimate for post-closure of all units that received hazardous waste (LAC 33:V.3709.A);
• Failure to establish adequate financial assurance for post-closure of all units that received hazardous waste (LAC 33:V.3711); and
• Failure to establish adequate financial assurance for third party liability at the Geismar Facility (LAC 33:V.3715.A).

Injunctive Relief

The injunctive relief required by the consent decree includes:

Hazardous waste determination: PCS Nitrogen is required to make RCRA hazardous waste determinations and properly manage all solid wastes generated at the main plant, including any solid wastes generated during cleaning of equipment or Gypsum Stack closure.

Site assessment, corrective action, and groundwater monitoring: PCS Nitrogen has already completed certain site assessment activities (see discussion on RCRA §3013 Order below) at the Geismar Facility. LDEQ and PCS Nitrogen have committed, per the consent decree, to continue monitoring groundwater and evaluate corrective action at the Facility. If warranted, PCS Nitrogen must implement appropriate corrective action to address the contamination identified through the RCRA §3013 Order and any additional investigative work required at the Facility, which will be governed by an administrative agreement, permit, and/or order issued by LDEQ under its authorized state program, and subject to EPA’s residual authorities under RCRA or any other applicable law.

Gypsum Stacks: PCS Nitrogen is required to adhere to all the requirements set forth in an LDEQ-approved groundwater monitoring plan, as well as operational and closure standards relating to the Gypsum Stack Systems. Additionally, the consent decree requires PCS Nitrogen to address any noted critical conditions in the Gypsum Stack System and implement temporary measures as necessary, as well as repair of the Active Clearwell at the Facility and subsequently convert the Active Clearwell into two different cells, an east cell to manage stormwater and leachate from the Gypsum Stack System and a west cell to be used as a second stage lime sludge settling impoundment.

Closure: As of the date of lodging of the consent decree, PCS Nitrogen has an approved permanent closure plan for the Gypsum Stack System, which includes treatment of all accumulated process wastewater and other waters coming into contact with process wastewater, appropriate capping and covering of the Gypsum Stack System, and 50 years of post-closure care.

Financial assurance: PCS Nitrogen is required to secure and maintain financial assurance to fund Gypsum Stack System closure, post-closure care, and third-party liability. The financial assurance obligation will be $84 million, which PCS Nitrogen must obtain within 30 days of the effective date of the settlement.

In addition to the above injunctive relief, PCS Nitrogen has completed the following activities at the Facility:

• RCRA 3013 Order: PCS Nitrogen has completed investigative work under the 3013 Order to characterize the source(s) of contamination, potential pathways, and the extent of contamination on-site and has submitted reports to EPA describing PCS Nitrogen’s investigative activities and the results that identified contamination at the Facility due to releases from the Gypsum Stack System. EPA concluded that PCS Nitrogen met all the requirements of the 3013 Order and closed the 3013 Order on April 20, 2020.
• Gypsum Stack Closure:
  • PCS Nitrogen completed construction of a wastewater treatment plant and has begun treating process wastewater.
  • PCS Nitrogen completed closure of former Pond 2D as reflected in a March 7, 2016, letter from LDEQ.
  • Gypsum Stack closure is now complete for Gypsum Stacks 3 through 6 as reflected in a December 29, 2020, letter from LDEQ.
  • Final cover has been placed on the side slopes of Gypsum Stack 7 as reflected in a February 1, 2022, letter from LDEQ.
  • Gypsum Stack closure is complete for Gypsum Stack 10 as reflected in a February 23, 2022, letter from LDEQ.
  • Gypsum Stack closure is now complete for Gypsum Stacks 1 and 2 as reflected in an April 18, 2022, letter from LDEQ.

Pollutant Impacts

The settlement requires PCS Nitrogen to treat over 1 billion pounds of acidic hazardous process wastewater over the next several years. The acidic hazardous process wastewaters will be contained in the Gypsum Stack System and then treated in the newly constructed water treatment plant.

Environmental Benefits

In a national enforcement effort, EPA has focused on compliance in the phosphoric acid industry because of the high risk of releases of acidic wastewaters at these facilities,  where these facilities are located in areas such as Geismar, that are prone to significant rain events and strong storms, increasing the risk of destabilizing the Gypsum Stack System or wastewater overtopping and subsequent release of hazardous constituents to the environment.

Through construction of a wastewater treatment system for the appropriate treatment of hazardous wastewaters and capping and closing of the Gypsum Stack System, PCS will reduce the potential for groundwater and surface water impacts. In addition, repair of the Active Clearwell, and previously completed repairs to the Inactive Clearwell, should further decrease the risk of potential releases of hazardous waste to the environment at the Facility.

Civil Penalty

PCS Nitrogen will pay a $1,510,023 civil penalty to be divided evenly between the United States and the State of Louisiana, who joined EPA and the U.S. Department of Justice as plaintiffs in this case and who will assist EPA in implementing the terms of the settlement.

Comment Period

The proposed settlement, lodged in the U.S. District Court for the Middle District of Louisiana, is subject to a 45-day comment period. Information on submitting comments is available by following the link to the Department of Justice website.

For more information, contact:

Van Housman
Attorney-Advisor
U.S. Environmental Protection Agency (MC2249A)
1200 Pennsylvania Avenue, NW
Washington, D.C. 20460
(202) 564-0143
[email protected]