Judge orders Ashland to pay $9.1 million over refinery fire

January 2003

U.S. Water News Online

MINNEAPOLIS -- A federal judge has ordered Ashland Inc. to pay more than $9.1 million in fines and restitution over an explosion and fire at its refinery in St. Paul Park, and to pay millions more to upgrade the refinery.

On May 16, 1997, workers were pumping hydrocarbons into the refinery's sewer system for treatment and recycling when vapors escaped through an improperly sealed manhole and ignited in a fireball. A second explosion involving liquid that erupted from the manhole injured six company firefighters, one very severely.

On May 13 of this year, federal prosecutors charged Ashland with two vio lations under the Clean Air Act, and with submitting a false statement to the Minnesota Pollution Control Agency claiming the sewer system complied with the Clean Air Act.

Under a plea bargain entered the same day, Ashland agreed to plead guilty to two of the charges and to a deferred prosecution on the third.

With two of the injured workers in the courtroom, Ashland Vice President Glenn Hammer apologized for the lapses that led to the accident.

``We are truly sorry for the events of May 1997,'' Hammer told U.S. District Judge James Rosenbaum. ``We take full responsibility.''

However, Rosenbaum was skeptical about the company's commitment to comply with environmental laws, citing its history of violations.

``Why in the world should I believe you?'' Rosenbaum asked.

Hammer said the violations were old ones that have been corrected. Nonetheless, Rosenbaum set aside $500,000 to pay for an independent overseer to act as a sort of probation officer for Ashland for the next five years.

Under the terms of the plea agreement, Rosenbaum sentenced Ashland to pay:

A $1.5 million criminal fine;

• $3.5 million in restitution plus lifetime medical coverage and other benefits to the most seriously injured firefighter, Randy Danielson, an Ashland employee who was the first man on the firehose closest to the manhole where the second explosion happened;
• $10,000 to each of the five other Ashland employees who were less severely injured;
• $50,000 each to the three local fire departments that responded, as well as to Ashland's own emergency response team;
• $3.9 million to the National Park Foundation for restoration work and other projects in the Mississippi National River and Recreation Area, which encompasses a 72-mile stretch of the river from Dayton and Ramsey to just south of Hastings;
• About $4 million to upgrade all process sewers, junction boxes and drains at the St. Paul Park plant, which is now owned by Marathon Ashland Petroleum LLC, based in Findlay, Ohio, which a joint-venture between Covington, Ky.-based Ashland Inc. and Houston-based Marathon Oil Company.

Ashland must also take out full-page ads in the Star Tribune and St. Paul Pioneer Press to discuss the case, and must sponsor a workshop during a national petroleum conference, dealing with federal regulations for petroleum wastewater systems.

``It is our hope that this prosecution sends a strong message to all companies that we will vigorously enforce the laws to protect not only the environment but also the health of their employees and the public,'' U.S. Attorney Thomas Heffelfinger said.

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