November 7, 2007
Volume 37, Number 403

Contact: Ravi Rangan, Air Quality Management, phone: (302) 323-4542 or Ali
Mirzakhalili, Air Quality Management, phone: (302) 739-9402

DNREC Issues Notice of $850,000 Assessment to Motiva Enterprises, Former
Owner of Refinery at Delaware City; Order Carries a $650,000 Penalty and
$200,000 Environmental Improvement Project

Delaware Department of Natural Resources and Environmental Control
Secretary John A. Hughes has issued a Notice of Administrative Penalty
Assessment and Secretarys Order to Motiva Enterprises LLC, former owners
of the refinery at Delaware City, for alleged air pollution violations
during its ownership of the refinery.

The Department has assessed a cash penalty of $650,000 and an additional
payment of $200,000 in the form of an Environmental Improvement Project
(EIP) to fund a reimbursement program for diesel retrofit projects that
will be implemented by the department.

This issue has been resolved appropriately with a substantial penalty and
sends a clear message that the department standards for refineries here in
Delaware have been and will continue to be, extremely high, said
Secretary Hughes. We will not tolerate noncompliance.

The violations covered by the penalty assessment and Secretarys order
include:

” In 2003, the sulfur recovery areas SCOT Units failed the annual stack
test for PM10 (particulate matter with an aerodynamic diameter of less
than 10 microns). Subsequently, in 2004, Motiva did not complete
additional testing because the results would have likely indicated a
failure to comply with permitted emission limits.

” In September and October 2001, actions taken by Motiva by either
physically changing the fluid catalytic cracking units carbon monoxide
boiler or by modifying its operation caused an increase of nitrogen oxides
(NOx) emissions by approximately 600 tons per year. Motiva failed to
submit a permit application and obtain a permit from the Department
authorizing such modification and consequent increase in NOx emissions
from the FCCU.

” In September and October 2001, Motiva failed to submit a permit
application and obtain a permit from the Department authorizing the
modification of the overhead heat exchangers in the crude unit atmospheric
column. These modifications caused an increase of 49.5 tons of NOx
annually from various process heaters, 20.7 tons of NOx annually from the
crude unit heaters, and 2.1 tons of volatile organic compounds annually
from various sources.

” Motiva conducted regular on-site ambient air quality sampling for total
suspended particulates (TSP) in an effort to evaluate petroleum coke
storage and handling practices. That sampling revealed 15 separate
violations of Delawares secondary ambient air quality standard between
November 2002 and April 2004.

Motiva Enterprises sold the refinery located on Wrangle Hill Road in
Delaware City to the Premcor Refining Group Inc. on May 1, 2004.

A copy of the order is accessible for public review on the Departments
web site at: www.dnrec.delaware.gov