Cenovus Energy to Pay $19 Million Civil Penalty Over Alleged Air Pollution Regulation Violations

By Sabela Ojea

Cenovus Energy has reached a settlement with the Justice Department and the Environmental Protection Agency after allegedly making the surrounding community of its Lima, Ohio-based refinery exposed to toxic benzene emissions.

The Canadian company has agreed to pay a civil penalty of $19 million, and to make capital investments of about $150 million to improve air quality in the area where the refinery is located through control technology, the Justice Department said Friday.

According to the complaint, Cenovus Energy's wholly owned subsidiary Lima Refining violated federal regulations limiting benzene in refinery wastewater streams, hazardous air pollutants and volatile organic compounds emissions at its Lima refinery, as well as the general requirement to use good air pollution control practices.

"This settlement is part of EPA's and the Justice Department's ongoing focus to assist communities that have been historically marginalized and disproportionately exposed to pollution," the Justice Department said.

As part of the settlement, Lima Refining will install one or more flash columns to reduce benzene in wastewater streams leading to its wastewater treatment plant. It also will cease operating, replace or upgrade other units at the refinery, the Justice Department added.

Benzene is known to cause cancer in humans. Short-term inhalation exposure to benzene also may cause drowsiness, dizziness and headaches, among other symptoms.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

September 27, 2024 12:34 ET (16:34 GMT)

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