The U.S. Environmental Protection Agency has reached a tentative $4.2 million settlement with a company that owned and operated a major East Coast refinery, which was forced to close after an explosion and fire in 2019. The deal with Philadelphia Energy Solutions was announced on Tuesday, with a 30-day public comment period before final court approval. The settlement, in which the company does not admit liability, is the largest ever sought for a refinery under a Clean Air Act rule.
The EPA investigation found that Philadelphia Energy Solutions failed to identify and assess hazards posed by a corroded pipe elbow in a hydrofluoric acid alkylation unit at the refinery in Philadelphia. The pipe ruptured due to extensive corrosion, with the pipe wall deteriorated to the thickness of a credit card since its installation in 1973. The explosion and fire in June 2019 led to the closure of the refinery, which had been operational for 150 years and was the largest oil refining complex on the East Coast, processing 335,000 barrels of crude oil daily.
Following the company’s bankruptcy after the incident, the EPA filed the claim in U.S. Bankruptcy Court in Delaware. The 1,300-acre site of the refinery was sold in 2020 and is now undergoing redevelopment into industrial space and life sciences labs. The site remains under a comprehensive cleanup agreement overseen by the EPA and the Pennsylvania Department of Environmental Protection.
The settlement underscores the importance of maintaining safety standards and proper hazard assessments in industrial facilities, especially those handling hazardous substances. This case serves as a reminder of the potential consequences of neglecting maintenance and safety protocols, leading to environmental and economic impacts.