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Koch Petroleum Group, L.P. Refinery Settlement

Agreement Is The First Of Its Kind In The Petroleum Refining Industry

Under the agreement reached with the Justice Department and EPA, filed in U.S. District Court in Minneapolis on December 22, 2000 Koch will spend an estimated $80 million to install up-to-date pollution-control equipment at two refineries in Corpus Christi, Tex. and one near St. Paul, Minn., reducing emissions from stacks, leaking valves, wastewater vents and flares. Koch also will pay a $4.5 million penalty to settle Clean Air Act violations and other environmental claims at its Minnesota refinery. The State of Minnesota has joined in the settlement with the United States. The civil settlement calls for actions that will be undertaken by Koch over the next 8 years.

The agreement will cut nitrogen oxide and sulfur dioxide emissions from the three refineries by 5,200 tons through 2008, through the use of upgraded technologies. Improved leak detection and repair practices and other pollution-control upgrades will also result in significant reductions in smog-causing volatile organic compounds and benzene, a known carcinogen. The agreement also includes measures to improve safety for workers and local communities sharply reducing accidental releases of pollutants.

The civil action is distinct from a Justice Department ongoing criminal prosecution against Koch Petroleum Group for alleged illegal activity at the company's refinery in Corpus Christi, Tex. An indictment returned against Koch Petroleum in September 2000 charges that the company conspired to violate the Clean Air Act at the refinery in 1995 and 1996.

For additional information, contact:

Patrick W. Foley
Senior Environmental Engineer
U.S. Environmental Protection Agency (2242A)
1200 Pennsylvania Ave., N.W.
Washington, DC 20460-0001
(202) 564-7978