CARBON BLACK MANUFACTURER AGREES TO SPEND $84 MILLION TO CONTROL AIR POLLUTION

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, November 19, 2013
Cabot Corporation Agrees to Spend Over $84 Million to Control Harmful Air Pollution at Louisiana and Texas Facilities

Boston-based Cabot Corporation, the second largest carbon black manufacturer in the United States, has agreed to pay a $975,000 civil penalty and spend an estimated $84 million on state of the art technology to control harmful air pollution, resolving alleged violations of the New Source Review (NSR) provisions of the Clean Air Act (CAA) at its three facilities in the towns of Franklin and Ville Platte, La., and Pampa, Texas, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced today.   This agreement is the first to result from a national enforcement initiative aimed at bringing carbon black manufacturers into compliance with the CAA’s NSR provisions.    

The state of Louisiana Department of Environmental Quality is a co-plaintiff in the case and will receive $292,500 of the penalty.

“By agreeing to pay an appropriate penalty and install state of the art technology to control harmful air pollution, Cabot Corp. is taking a positive step forward to address these alleged violations of the Clean Air Act,” said Acting Assistant Attorney General Robert G. Dreher of the Justice Department’s Environment and Natural Resources Division.  “This agreement will serve as a model for how the industry can come into compliance with the Clean Air Act by installing controls that prevent harmful pollution and improve air quality for surrounding communities.”

“With today’s commitment to invest in pollution controls, Cabot has raised the industry standard for environmental protection,” said Assistant Administrator Cynthia Giles of EPA’s Office of Enforcement and Compliance Assurance.  “These upgrades will have lasting, tangible impacts on improved respiratory health for local communities.  We expect others in the industry to take notice and realize their obligation to protect the communities in which they operate.”

“This is a huge win for the citizens of our district,” said U.S. Attorney Stephanie A. Finley.  “These harmful pollutants can cause serious, long term respiratory harm.  The United States Attorney’s Office is committed to the enforcement of the environmental laws and protection of the community.  This settlement promotes a healthier environment and an opportunity to allow the residents of the district to breathe cleaner air.”

At all three facilities, the settlement requires that Cabot optimize existing controls for particulate matter or soot, operate an “early warning” detection system that will alert facility operators to any particulate matter releases, and comply with a plan to control “fugitive emissions” which result from leaks or unintended releases of gases.   To address nitrogen oxide (NOx) pollution, Cabot must install selective catalytic reduction technology to significantly reduce emissions, install continuous monitoring, and comply with stringent limits.   At the two larger facilities in Louisiana, Cabot must address sulfur dioxide (SO2) pollution by installing wet gas scrubbers to control emissions, install continuous monitoring, and comply with stringent emissions limits.   In addition, the Texas facility is required to comply with a limit on the amount of sulfur in feedstock that is the lowest for any carbon black plant in the United States.

These measures are expected to reduce NOx emissions by approximately 1,975 tons per year, SO2 emissions by approximately 12,380 tons per year, and significantly improve existing particulate matter controls.  Exposure to NOx emissions can cause severe respiratory problems and contribute to childhood asthma.   SO2 and NOx can be converted to fine particulate matter once released in the air.  Fine particulates can be breathed in and lodged deep in the lungs, leading to a variety of health problems and even premature death.   The harmful health and environmental impacts from these pollutants can occur near the facilities as well as in communities far downwind from the plants.
       
In the complaint filed by DOJ on behalf of EPA, the government alleged that, between 2003 and 2009, Cabot made major modifications at its carbon black facilities without obtaining pre-construction permits and without installing and operating required pollution technology.  The complaint further alleges that these actions resulted in increased emissions of NOx and SO2, violating CAA requirements stating that companies must obtain the necessary permits prior to making modifications at a facility and must install and operate required pollution control equipment if those modifications will result in increases of certain pollutants.

Today’s action also requires that Cabot spend $450,000 on energy saving and pollution reduction projects that will benefit the communities surrounding the facilities in Franklin and Ville Platte, La., and in Pampa, Texas, such as upgrading air handling units at municipal buildings in the three communities to more efficient technology.  

Carbon black is a fine carbonaceous powder used as a structural support medium in tires and as a pigment in a variety of products such as plastic, rubber, inkjet toner and cosmetics.  It is produced by burning oil in a low oxygen environment; the oil is transformed into soot (carbon black), which is collected in a baghouse.  Because the oil used in the process is low value high sulfur oil, the manufacturing process creates significant amounts of SO2 and NOx, as well as particulate matter.

This settlement is part of EPA’s national enforcement initiative to control harmful air pollution from the largest sources of emissions.  Since 2010, EPA has been focusing enforcement efforts on reducing emissions at carbon manufacturing plants in the United States.  Currently, none of the 15 carbon black manufacturing plants located in the United States have controls on emissions of SO2 and NOx or have continuous emissions monitors.

DEFUNCT COMPANY AND OWNER TO PAY OVER $300.000 TO SETTLE WHISTLEBLOWER LAWSUIT

FROM:  U.S. DEPARTMENT OF LABOR

Judge orders North Canton-based Star Air, Akron Reserve Ammunition,
owner to pay more than $300,000 to 2 terminated Ohio truck drivers
Consent judgment resolves lawsuit filed by Department of Labor
NORTH CANTON, Ohio — Under terms of a consent judgment, a now defunct North Canton, Ohio-based company, Star Air Inc., and owner Robert R. Custer, will pay two Ohio truck drivers $302,000 to resolve a lawsuit filed by the U.S. Department of Labor for terminating two of the company's drivers in violation of the 1982 Surface Transportation Assistance Act's whistleblower provisions. Akron Reserve Ammunition Inc., was also named a defendant in the lawsuit because the department alleges that the company, which is owned by Custer, is the successor to Star Air.

"These drivers were fired for trying to protect themselves and the driving public," said Assistant Secretary of Labor for Occupational Safety and Health Dr. David Michaels. "No truck driver should be forced to drive while tired, sick or in violation of truck weight or hours-of-service requirements. OSHA will continue to defend America's truck drivers against unscrupulous employers who unlawfully retaliate against drivers who assert their right to drive safely."

The drivers were dismissed after one was stopped by West Virginia State Police and cited for: hauling an excess load without a commercial driver's license, operating an overweight trailer and driving without a logbook. The commercial vehicle also did not have the name of the company, its home base or its U.S. Department of Transportation number displayed. The driver who was cited informed another driver, who was also operating without the proper information displayed, and they refused to continue driving until these issues were resolved. Consequently, both were terminated.

Both drivers filed complaints with the Occupational Safety and Health Administration alleging that Star Air had discriminated against them in retaliation for activities protected by the STAA, and a Labor Department administrative law judge issued the order for reinstatement and back wages. Under automatic review provisions, the judge's decision then was referred to and upheld by the Administrative Review Board, which issues final decisions for the secretary of labor in cases arising under a wide range of worker protection laws.
The companies and Custer will pay the $302,000 agreed upon amount over a three-year period. If any party defaults on payments, the court can order the payment of the entire amount awarded in the judgment, which is $685,785.22. The U.S. District Court for the Northern District of Ohio, Eastern Division, in Akron made the ruling. The department is represented by its Regional Office of the Solicitor in Cleveland.

OSHA enforces the whistleblower provisions of the STAA and 21 other statutes protecting employees who report violations of various airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, motor vehicle safety, health-care reform, nuclear, pipeline, public transportation agency, railroad, maritime and securities laws.

Under the various whistleblower provisions enacted by Congress, employers are prohibited from retaliating against employees who raise various protected concerns or provide protected information to the employer or the government. Employees who believe that they have been retaliated against for engaging in protected conduct may file a complaint with the secretary of labor for an investigation by OSHA's Whistleblower Protection Program.

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