Philadelphia Energy Solutions has reached a tentative $4.2 settlement with the U.S. Environmental Protection Agency following an explosion and fire at a major East Coast refinery in 2019. The settlement, which is subject to a 30-day public comment period before final court approval, does not admit any liability on the part of the company. It is the largest amount ever sought for a refinery under a Clean Air Act rule that requires owners and operators to ensure the safe management of hazardous substances. The EPA found that the company failed to identify and assess hazards posed by a pipe elbow in a hydrofluoric acid unit at the Philadelphia refinery, which led to the explosion.
The explosion and subsequent fire in June 2019 forced the refinery to close after 150 years of operation. The facility, which was the largest oil refining complex on the East Coast, processed 335,000 barrels of crude oil daily. Following the incident, the company entered bankruptcy, leading to the EPA filing a claim in U.S. Bankruptcy Court in Delaware. The 1,300-acre site where the refinery once stood was sold in 2020 and is currently being redeveloped 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 with Philadelphia Energy Solutions highlights the importance of ensuring the safe management of hazardous substances in industrial facilities. The EPA’s findings of the company’s failure to assess and address potential hazards at the refinery serve as a reminder of the need for stringent regulations and oversight in such operations. The $4.2 million settlement reflects the severity of the incident and the impact it had on the surrounding community and environment. By holding the company accountable for its negligence, the EPA aims to prevent similar incidents from occurring in the future.
The closure of the Philadelphia refinery marked the end of a significant chapter in the region’s industrial history. With the site now being redeveloped into new industrial and scientific facilities, it represents a new beginning for the community. The cleanup efforts, overseen by the EPA and state authorities, are crucial in ensuring that the site is safe for future use and does not pose a threat to public health or the environment. The settlement reached with Philadelphia Energy Solutions is a step towards rectifying the damage caused by the explosion and fire, and holding responsible parties accountable for their actions.
The public comment period on the settlement will provide an opportunity for stakeholders, including community members and environmental advocates, to weigh in on the agreement. Their input could influence the final court approval of the settlement and ensure that the interests of those affected by the incident are taken into account. The transparency of the process and the involvement of the public in the decision-making are essential in building trust and confidence in the regulatory authorities and the companies operating in the industrial sector. Moving forward, the lessons learned from the Philadelphia refinery incident should inform efforts to enhance safety measures and prevent similar accidents in refineries and other industrial facilities across the country.
