On December 14,2010, through December 16, 2010 EPA conducted a partial compliance evaluation inspection of the refinery pursuant to Section 112 of the Clean Air Act, 42 U.S.C. §7414 to evaluate the Facility’s compliance with the requirements of 40 CFR Part 68. Respondent uses a standard procedure for inspection of process piping systems titled Mechanical Integrity Examination and Inspection Manual, Piping inspection Procedure (the “Piping Inspection Procedure”), which it prepared to be consistent with an industry standard prepared by the American Petroleum Institute (API): Standard 570-Piping Inspection Code: Inspection, Repair, Alteration, and Rerating of In-Service Piping Systems (“API 570”).
Under the Piping Inspection Procedure, Respondent inspects piping systems primarily by external visual inspections and by piping thickness measurements taken at designated piping monitoring locations. Respondent established piping inspection frequencies to be consistent with frequencies required by API 570 and used a computer program to track the completion of its scheduled inspections. During the EPA Inspection and follow up, the EPA inspector reviewed Respondent’s records of inspections of four process piping circuits at the FCC Unit. Based on its initial review of these records, the EPA inspector requested records of piping inspections for the FCC that were past due under Respondent’s mechanical integrity piping inspection program. Respondent provided records of past-due piping inspections to EPA on January 27, 2011, and January 31, 201 1. Respondent represented that it would complete the past due inspections by the end of year 2011.
Based on the records provided by Respondent, Respondent failed to perform approximately 2,330 piping inspections due to be performed by December 28, 2010, under Respondents piping inspection schedule. Approximately 1,850 of these inspections were process piping inspections in the FCC Unit that were due to be performed by October 2, 2010.
Section 113(d)(1) of the Clean Air Act, 42 U.S.C. § 7413(d)(1), authorizes EPA to initiate an administrative action when the FIRST alleged date of violation occurred more than twelve (12) months PRIOR to the initiation of the action, if the Administrator and the United States Attorney General jointly determine that the matter is appropriate for administrative action. EPA and the U.S. Department of Justice have jointly determined that it is appropriate for Complainant to initiate this administrative action for a civil penalty even though the violations alleged herein occurred more than twelve (12) months prior to the initiation of this administrative action.
ALLEGED VIOLATION; Failure to Inspect Process Equipment at Frequency Required by 40 CFR § 68.73(d)(3)
As the owner and operator of the Facility, Respondent is subject to the Program 3 requirements in 40 CFR Part 68 Subchapter D ( 40 CFR §§ 68.65-68.87), with respect to the FCCU, including mechanical integrity requirements for process equipment in 40 CFR § 68.73.
The mechanical integrity requirements in 40 CFR § 68.73(d) address inspection and testing of process equipment as follows:
(1) inspections and tests shall be performed on process equipment;
(2) inspection and testing procedures shall follow recognized and generally accepted good engineering practices;
(3) the frequency of inspections and tests of process equipment shall be consistent with applicable manufacturers’ recommendations and good engineering practices, and more frequently if determined to be necessary by prior operating experience; and
(4) the owner or operator shall document each inspection and test that has been performed on process equipment. The documentation shall identify the date of the inspection or test, the name of the person who performed the inspection or test, the serial number or other identifier of the equipment on which the inspection or test was performed, a description of the inspection or test performed, and the results of the inspection or test.
Respondent failed to inspect process equipment subject to 40 CFR § 68.73(d) at a frequency required by its own mechanical integrity piping inspection procedures and good engineering practices, including API 570. More specifically, Respondent failed to perform approximately 2,330 piping inspections due to be performed by December 28,2010, under Respondent’s piping inspection schedule. Approximately 1,850 of these inspections were process piping inspections in the FCC Unit that were due to be performed by October 2, 2010.
Respondent’s failure to perform these inspections at the required frequency violated 40 CFR § 68.73(d)(3).
Upon consideration of the entire record herein, including the Findings of Fact and Conclusions of Law, which are hereby adopted and made a part hereof, and upon consideration of the size of the business, the economic impact of the penalty on the business, the violator’s full compliance history and good faith efforts to comply, the duration of the violation, payment by the violator of penalties previously assessed for the same violation, the economic benefit of noncompliance, the seriousness of the violation, and other factors as justice may require, it is ORDERED that Respondent be assessed a civil penalty in the amount of ONE HUNDRED TWELVE THOUSAND THREE HUNDRED AND NINE DOLLARS ($112,309.00).
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