In a settlement with the United States, Lima Refining Company (LRC), a Husky Energy Inc. subsidiary, has agreed to undertake significant injunctive relief to reduce harmful air pollution from the company's refinery located in Lima, Ohio, the U.S. Environmental Protection Agency (EPA) announced today. The settlement will resolve claims that the company violated its 2007 Consent Decree with the U.S. Environmental Protection Agency and the State of Ohio, among other parties (Civil Action SA-05-CA-0569-RF) and the Clean Air Act by failing to operate the facility in compliance with the National Emission Standards for Hazardous Air Pollutants from Petroleum Refineries at 40 C.F.R. Part 63, Subparts CC and A, its Title V permit, its Permit-to Install, and the Ohio State Implementation Plan.
EPA expects that the actions required by the settlement will result in the following annual emission reductions: 98 tons per year (TPY) of sulfur dioxide (SO2), 28 TPY of volatile organic compounds (VOC), 69 TPY of nitric oxide (NOx), and 28 TPY of particulate matter (PM). Additionally, LRC will spend $10,000,000 in mitigation to further reduce SO2 emissions that result from acid gas flaring during startup, shutdown, and process upsets. The company estimates that it will spend over $150,000,000 to implement the required measures. LRC will also perform a supplemental environmental project in the amount of $1,750,000 for lead-based paint abatement, prioritizing abatement in owner-occupied low inco