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Monday, February 8, 2010

Conoco Phillips to pay $175K fine

ConocoPhillips Co. has agreed to pay a hefty fine and install pollution-control equipment to settle alleged Clean Air Act violations on the Southern Ute Indian Reservation.The company will pay $175,000 in civil penalties in an agreement with the U.S. Environmental Protection Agency regarding the Argenta and Sunnyside compressor stations.

ConocoPhillips also agreed to install new equipment and implement practices to reduce emissions and conserve natural gas.

“The settlement will formalize ConocoPhillips Co.'s commitment to reduce emissions of carbon monoxide, volatile organic compounds, toxic and greenhouse gases, while conservation measures help return valuable natural gas to the marketplace," Carol Rushin, EPA Region 8 acting regional administrator, said in a news release Thursday.

ConocoPhillips in 2009 produced 16 billion cubic feet of natural gas in La Plata County, sixth-most among gas producers, according to state records. BP America produced the most by far, pumping 194.7 billion cubic feet from local wells.

“That will reduce the emissions across the board eventually, so it'll help anyone that lives close by that has any asthma-related health issues," Baizel said. “It'll also help keep La Plata County out of trouble with the EPA in terms of ozone levels."

The federal agency's complaint says a permit for ConocoPhillips' Sunnyside compressor station that took effect in December 2005 required the company to install an oxidation catalyst control system, but the company did not do so until March 2007.

The agency also alleged that ConocoPhillips was not keeping required emissions records, among other violations. ConocoPhillips cooperated with the agency to resolve the violations, the EPA said.

ConocoPhillips, based in Houston, reported $4.9 billion in earnings in 2009. The company has 30 days to pay the $175,000 fine, according to the settlement.

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