OREANDA-NEWS. May 30, 2012. BP Products North America Inc. announced today that it has reached an agreement with U.S. Environmental Protection Agency (EPA), the Department of Justice (DOJ), and the Indiana Department of Environmental Management (IDEM) resolving the federal government’s objections to the air permit for the Whiting Refinery modernization project. Joining the government in this agreement are the Sierra Club, the Environmental Integrity Project, the Natural Resources Defense Council, the Environmental Law and Policy Center, the Hoosier Environmental Council, and Save the Dunes. These groups will drop their challenges to the air permit and will support the issuance of a revised permit as part of the agreement.

“We are pleased to have reached an agreement that protects jobs, consumers, and the environment,” said Steve Cornell, President of BP Products North America. “This multi-billion dollar modernization project is the largest private-sector investment in Indiana history and ensures the Whiting Refinery will continue to provide fuel and jobs for the region for decades to come. In fact, we will be employing 10,000 BP and contractor staff on site this year.”

In addition to resolving the challenges to the Whiting Refinery air permit, the agreement also settles all allegations of air emissions violations at the Whiting Refinery. Under the agreement, BP will enter into a consent decree with EPA, DOJ, IDEM, and several non-governmental organizations to settle these matters.

BP has agreed to implement a number of projects designed to further decrease air emissions at the Whiting plant. These environmental projects include a state-of-the-art system to reduce the flaring of refinery gas as well as additional controls and practices to lower emissions from process equipment throughout the refinery. These emissions reduction projects have an estimated cost of more than USD 400 million. BP also has agreed to pay a total of USD 8 million in civil fines that cover allegations of air emissions violations since 2001. In addition, BP will implement a refinery fence line monitoring system to provide air quality information to the local community.

“BP has long been committed to being a responsible member of the community and this comprehensive settlement is an example of that commitment,” said Nick Spencer, Whiting Refinery Manager. “We look forward to completion of the modernization project, which will improve the refinery’s efficiency and competitiveness while continuing to reduce emissions.”