A subsidiary of Cenovus Energy has agreed to a $169 million settlement to resolve claims from the U.S. Environmental Protection Agency (EPA) regarding pollution at its petroleum refinery in Lima, Ohio. The U.S. Department of Justice and EPA announced the deal on Friday.

Cenovus Energy $169M Deal : Settlement Details

Lima Refining Co., a unit of the Canadian-based Cenovus Energy, will pay a $19 million civil penalty and invest $150 million in emissions reduction technology to settle allegations under the Clean Air Act. According to the EPA, the company failed to limit toxic benzene emissions in its wastewater streams and neglected to adequately reduce air pollutants.

EPA’s Allegations

The EPA's complaint asserts that Lima Refining improperly managed its benzene waste streams by exposing them to the atmosphere before treatment, allowing harmful pollutants to escape into the surrounding community. Additional violations cited by the EPA include improperly sealed roof openings and failure to conduct required sample testing between 2018 and 2022, with some violations persisting through the present.

David Uhlmann, assistant administrator of the EPA’s Office of Enforcement and Compliance Assurance, emphasized the significance of the settlement. "Lima will pay a substantial penalty for its violations and install $150 million in emissions controls that will provide cleaner air and healthier water to a community that deserves nothing less," he said.

Investment in Emission Reduction

The $150 million portion of the settlement will fund advanced emission control technologies aimed at reducing pollutants. The EPA estimates that these measures will decrease benzene emissions by 4.34 tons per year, hazardous air pollutants by 16.26 tons per year, and volatile organic compound emissions by 219 tons per year.

The investment highlights the importance of fence line monitoring, a method Uhlmann noted helps safeguard communities affected by refinery emissions.

Cenovus Energy $169M Deal : Legal Representation

The EPA is represented by Todd Kim, Zachary N. Moor, Rebecca C. Lutzko, and Guillermo Rojas from the U.S. Department of Justice. Counsel for Lima Refining was not immediately available for comment.