Clean Water Act Enforcement: U.S. Environmental Protection Agency/State of Arkansas Enter into Consent Agreement with Magnolia, Arkansas Oil Storage/Transfer Facility

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

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The United States Environmental Protection Agency entered into a Consent Decree (“Decree”) with Delek Logistics Operating, LLC, and Sala Gathering Systems, LLC, (collectively Delek) to address alleged violations relating to a 2013 oil spill from an oil storage and transfer station (“Station”) in Magnolia, Arkansas.

The State of Arkansas is a co-plaintiff and an additional signatory to the Decree.

The Decree addresses alleged Clean Water Act violations stated to have arisen from an alleged failure to properly operate and maintain the Station. The Station suffered an oil spill on March 8, 2013 which impacted a creek and Little Cornie Bayou.

The Decree also addresses alleged Arkansas claims related to the Resource Conservation and Recovery Act hazardous waste regulations. Delek allegedly failed to properly manifest, transport, and dispose of hazardous waste.

The Decree assesses $2,255,460 in civil penalties.

The Decree also provides that subsequent to the 2013 oil spill that the following actions were undertaken by Delek at the Station to enhance environmental protection:

  1. installed or enhanced berms and graded soil to ensure oil spills occurring outside of tank containment would flow into an existing containment pond ("East Pond");
  2. increased secondary containment capacity of East Pond to approximately 4,800 barrels;
  3. removed all in ground strainers and replaced them with above ground strainers;
  4. installed supervisory control and data acquisition ("SCADA") monitored leak detection meters on pipelines;
  5. installed SCADA monitored gages and high level alarms on all production tanks;
  6. installed 24-hour hydrocarbon monitors and/or infrared video cameras for leak detection;
  7. installed pressure transmitters to the suction side of all product discharge pumps;
  8. installed SCADA controlled, electronically operated isolation valves to the discharge side of all product discharge pumps;
  9. installed alarms on seal leak detectors at pumps and on pump sumps;
  10. converted an existing warehouse in the vicinity of Magnolia Facility to store emergency response equipment for Delek's and its affiliated entities' operations in southern Arkansas;
  11. tested station piping to three times the normal operating pressure and is bringing underground lines aboveground for ease of inspection going forward;
  12. tested or inspected all check valves on pump discharges and installed motor operated valves as a back-up to the check valves; and
  13. is implementing a "dead leg" removal program.

The Decree includes appendices describing the work undertaken by Delek.

Delek neither admits nor denies alleged violations.

A copy of the Decree can be downloaded here.

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Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.
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