On June 16, 2025, U.S. Bankruptcy Court issued an order in a matter captioned, In re PES Administrative Services, LLC, No. 19-11626, that entered a Stipulation filed by the U.S. Department of Justice, on behalf of EPA.
The Order entering the Stipulation resolved EPA Region 3?s claims against Philadelphia Energy Solutions Refining and Marketing, LLC (?PES?) and North Yard Logistics (?North Yard?) for alleged violations of CAA 112(r) and 40 C.F.R. Part 68 (?Stipulation?). Pursuant to the terms of the settlement, EPA has an ?allowed general unsecured claim? in the amount of $4,226,724 in settlement of the EPA 112(r) Claim. The penalty will be paid pursuant to a court-approved bankruptcy reorganization plan and any money collected will go to the U.S. Department of Treasury.
On June 21, 2019, PES suffered a large-scale catastrophic incident at PES?s Philadelphia-based refinery (?Facility?) involving an explosion, fire, and release of hydrofluoric acid (?HF?) at the alkylation unit at the PES Refinery. On July 21, 2019, PES, and related entities, filed for bankruptcy protection in the United States Bankruptcy Court for the District of Delaware.
On January 14, 2020, the United States, on behalf of EPA, filed multiple claims against PES, including a claim for payment of a civil penalty for PES?s and North Yard?s violations of Section 112(r) of the CAA, 42 U.S.C. ?7412(r). According to EPA, PES and North Yard violated CAA 112(r) and implementing regulations found at 40 C.F.R.