CITGO Petroleum Could be Fined for Louisiana Oil Spill

The Louisiana Department of Environmental Quality announced last week that that CITGO Petroleum Corporation could faces potential fines for the oil spill emanating from its Louisiana refining facility in June. The state-issued fines, if imposed, would be separate from any action being considered by federal investigators. The spill, one of the largest ever in Louisiana history, blocked the Calcasieu Shipping Channel in Louisiana for 10 days, delaying traffic on the key Gulf coast waterway.

The DEQ’s Regional Manager in Baton Rouge indicated that fines were possible and that the matter had been referred to its enforcement division, with pending action likely. The fines could reach over $32,000 per day, addressing the time lapse between the time of the spill and CITGO’s notification of appropriate authorities. According to Louisiana DEQ’s Rodney Mallett, the potential fines represent the most severe financial penalties that the DEQ can impose. The Calcasieu Shipping Channel is a major link to the Gulf of Mexico from the port of Lake Charles, where the combined refining capacity of (700,000+ BPD) local facilities was idled or forced to reduce production because marine traffic could not deliver feedstocks during the spill.

DEQ investigations and assessments were not expected to be completed until later this year. CITGO spokespersons said the company is conducting an internal investigation and will set up procedures to prevent future spills. The initial investigation determined that the spill occurred after heavy rains caused two waste oil tanks to overflow into an emergency containment area surrounded by a dike. The spilled oil then escaped the containment area into a nearby bayou. DEQ personnel say that it is far too early to determine the long term effects of the spill on the environment.