By Shannon Henson, [email protected]
Wednesday, Jun 27, 2007 --- A jury found Citgo Petroleum Corp. and its subsidiary guilty Wednesday of two felony criminal counts of violating the Clean Air Act at its Corpus Christi refinery, while exonerating the company of allegations that it violated limits for the amount of benzene in open water streams.
Before reaching its verdict, the jury in the U.S. District Court for the Southern District of Texas deliberated for three days. Citgo is scheduled to be sentenced in October, and faces fines of up to $500,000 per count or twice the gross economic gain and five years of probation.
“Citgo failed to install required emissions controls, which emitted benzene, a known carcinogen, into the air. Today’s jury conviction sends a clear message that neither the public nor the government will allow corporations to knowingly break the law and pose a risk to the local community and the environment,”said Granta Y. Nakayama, the EPA’s assistant administrator for the Office of Enforcement and Compliance Assurance.
Citgo and Citgo Refining and Chemical Co. were convicted on two counts of operating two open top tanks without installing the proper emission controls required by federal law at the Corpus Christi East Plant Refinery. The tanks were used as oil water separators, but the U.S. Department of Justice said they were not equipped with either a fixed-roof, vented to a control device, or a floating-roof.
Citgo fixed one tank before the government brought its case, said Citgo's attorney. The company is in the process of fixing the other, he “We spent a lot of money remedying the problem that we reported to the government that we had,” he said. “We were charged only after we fixed everything. I believe that sends a bad message to the industry that even if you fix things, they're going to come after you.”
However, Citgo was pleased that it was exonerated of the allegations that it operated a refinery with more than 6 megagrams of benzene in uncontrolled waste streams. Benzene is a hazardous air pollutant found to cause cancer in people exposed to small amounts of the chemical. The company and its environmental manager, Philip Vrazel, were indicted by a federal grand jury in August 2006. Some of the other allegations in the case, including violations of the Migratory Bird Treaty Act, have been severed.
The DOJ said a trial regarding the bird charges was set for July. Citgo is willing to discuss a settlement, but the government is unwilling.
