Delek Companies to Enhance Environmental Protections to Settle U.S. and Arkansas Claims for Magnolia, Arkansas, Oil Spill

Media contacts: Jennah Durant or Joe Hubbard, R6Press@epa.gov or 214 665-2200

Magnolia, Ark. – (Aug. 30, 2019) Today, the United States Environmental Protection Agency (EPA) announced a settlement with Delek Logistics Operating, LLC, Delek Logistics Partners, LP, and SALA Gathering Systems, LLC (Delek) to resolve alleged violations relating to a 2013 oil spill from Delek’s oil storage and transfer station in Magnolia. Under the settlement, Delek will enhance environmental protections at its Magnolia facility and pay $2,255,460 in civil penalties.

In a complaint filed jointly with co-plaintiff the State of Arkansas, the EPA asserted claims under the Clean Water Act arising from Delek’s failure to properly operate and maintain the Magnolia facility, and for the resulting oil spill. Arkansas asserted similar claims, as well as claims related to Delek’s failure to properly manifest, transport, and dispose of hazardous wastes. According to the complaint, the oil spill occurred on March 8, 2013, and impacted approximately 3.5 miles of a creek and Little Cornie Bayou. The waters of Little Cornie Bayou eventually flow into the Ouachita River. As alleged in the complaint, pipeline corrosion and improperly maintained facilities were contributory causes of the oil spill.

“Oil spills can cause serious damage to the environment and local economies,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “Today’s settlement shows that EPA will hold companies responsible if they fail to take the necessary steps to prevent spills.”

“EPA knows how important Arkansas’s creeks and rivers are to the people of Arkansas,” said Region 6 Administrator Ken McQueen. “That’s why we worked closely with the Arkansas Department of Environmental Quality to address the oil spill violations and ensure that any areas damaged by the spill are restored.”

To resolve the governments’ claims, Delek will enhance environmental protections at the Magnolia facility and will pay civil penalties to the United States and the Arkansas Department of Environmental Quality (ADEQ). Under a proposed consent decree lodged today in federal court, Delek will test the water quality and the soil in areas impacted by the spill and will perform a remedial action if testing indicates a potentially unacceptable human health or ecological risk. Delek will also conduct spill response training and establish caches of spill response materials at the Magnolia facility and near Delek’s refinery in El Dorado. Finally, Delek will pay to the United States $1,705,460 in federal civil penalties for the Clean Water Act violations and pay to ADEQ $550,000 for civil penalties under state law.

The penalty paid to the United States will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. Those funds will be available to pay for federal response activities and to compensate for damages when there is a discharge, or substantial threat of discharge, of oil or hazardous substances to waters of the United States or adjoining shorelines.

The proposed consent decree lodged with the court today is subject to a 30-day public comment period, as well as court review and approval. A copy of the consent decree is available on EPA’s website at https://www.justice.gov/enrd/consent-decree/us-and-state-arkansas-v-delek-logistics-operating-and-sala-gathering-systems-llc.
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