Feds seek over $157M in fines vs Shell

U.S. Attorney Alicia Limtiaco and U.S. Assistant Attorney Mikel W. Schwab said the case was filed upon the request of the U.S. Environmental Protection Agency.

The two are asking the federal court to permanently enjoin Mariana Acquisition Corp., doing business as Shell Marianas, from operating the MAC terminal where it loads fuel and other related products for distribution around the island.

Shell and Mobil are the two oil firms supplying fuel in the Northern Marianas.

Schwab and Limtiaco are asking the court to assess civil penalties against Shell amounting to not more than $25,000 per day for each violation incurred on or before Jan. 30, 1997; up to $27,500 per day for each violation incurred between Jan. 30, 1997 and March 15, 2004; up to $32,500 per day for each violation incurred between March 16, 2004 and Jan. 12, 2009; and up to $37,500 per day for each violation incurred from Jan. 12, 2009.

If the court grants the plaintiff’s civil penalty request, Shell could be fined $25,000 for Jan. 30, 1997; $71,472,500 between Jan. 31, 1997 through March 15, 2004, which is seven years and 44 days; $57.2 million from March 16, 2004 to Jan. 12, 2009, four years and 300 days, and; $28.8 million from Jan. 13, 2009 to March 21, 2011.

According to the U.S. Attorney’s Office, Shell’s MAC terminal loading racks have been and continue to be operated without a vapor collection system as required by the Clean Air Act’s standards.

“Since 1989, defendant has failed to limit emissions from the loading of liquid product from the MAC Terminal loading racks into gasoline tank trucks to not more than 35 milligrams of total organic compounds per liter of gasoline loaded as required by [law], because the loading racks do not have a vapor collection system and the uncontrolled emissions, therefore, greatly exceed 35 milligrams of total organic compounds per liter of gasoline loaded,” it stated.

Shell’s MAC terminal is located on a lot  leased from the Commonwealth Ports Authority in Puerto Rico.

The terminal is loaded with petroleum products shipped from Singapore like gasoline and diesel, which are then distributed by pipeline from the storage tanks to loading racks.

“The MAC Terminal is a ‘bulk gasoline terminal’…because it receives gasoline by ship and has a maximum calculated design throughout capacity greater than 75,700 liters per day,” court documents stated.

Schwab separately filed a Notice of Lodging of Consent Decree for Public Comment in federal court to give the general population at least 30 days to submit comments to the U.S. Department of Justice.

After the 30-day public comment period, Schwab asked the court to take no action with respect to the lodged settlement until the U.S. Attorney’s Office moved for its entry or otherwise advise the court.

Variety tried but failed to get a comment from the Shell offices on Guam or Saipan. The firm has 20 days to answer the complaint.

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