EPA Press Office:

EPA Settlement Requires Action be Taken to Prevent Leaks, Secures Nearly $300,000 Penalty to Settle Alleged Clean Air Act Violations at Peerless Oil and Chemicals Inc. in Puerto Rico

NEW YORK (November 13, 2023) – The U.S. Environmental Protection Agency (EPA) has reached a settlement with Peerless Oil and Chemicals Inc for alleged violations of the Clean Air Act (CAA) at its Peñuelas, Puerto Rico facility. The settlement requires Peerless to inspect its gasoline storage tanks and monitor for potential emissions of hazardous air pollutants (HAPs) using an infrared camera for the next 12 months. In addition, Peerless must pay $287,756 in penalties.

“The settlement requires the company to regularly monitor for and stop the release of any major hazardous air pollutants, protecting communities near this facility,” said EPA Regional Administrator Lisa F. Garcia. “Residents will breathe cleaner air as a result of the upgrades and long-term monitoring that were done at this facility under this settlement.”

During inspections in 2018 and 2019, EPA found that Peerless had violated the CAA by not controlling HAPs from its petroleum storage and loading terminal in Peñuelas, Puerto Rico. EPA detected elevated levels of HAPs and other harmful gases called volatile organic compounds (VOCs) at the facility and identified problems with pollution control equipment for gasoline storage tanks such as faulty seals and seal gaps, and problems with the operation of the flare at the gasoline truck loading station.

In response to the EPA’s investigation, Peerless did extensive maintenance and repair work to upgrade its gasoline truck loading station flare and ensure compliance with emission control requirements for its internal floating roof and external floating roof gasoline storage tanks.

As part of the investigation, Peerless purchased a specialized infrared (IR) camera and a tablet capable of converting camera observations into parts per million (ppm) concentration values. The IR camera will be used as a screening tool to identify leaking components at storage tanks, enabling prompt corrective action and compliance with applicable regulations.

The settlement includes innovative approaches, such as requiring Peerless to conduct monthly tank inspections with the IR camera for a 12-month period, taking corrective action if any emissions are observed.

Peerless has developed a Standard Operating Procedure for operating the IR camera, a tank inspection checklist for camera operators, and has trained additional employees to use the IR camera.  Peerless agreed to pay a civil penalty and inspect its gasoline storage tanks monthly using an infrared (IR) camera to ensure compliance and prevent future emissions.

Follow EPA Region 2 on Twitter and visit our Facebook page. For more information about EPA Region 2, visit our website.

23-105