FOR IMMEDIATE RELEASE TUESDAY, MARCH 31, 1998

ENR

PETRO-CHEMICAL MANUFACTURER, UNOCAL, AGREES TO

MORE THAN $7 MILLION SETTLEMENT FOR VIOLATING

CLEAN AIR LAWS AT ALASKA PLANT

Must Take Action to Meet Federal and State Clean Air Standards

WASHINGTON, D.C. -- Unocal, the California-based petroleum and chemical manufacturer, today agreed to an environmental settlement valued at more than $7 million to resolve allegations that its Kenai, Alaska industrial ammonia and urea fertilizer production plant violated the federal Clean Air Act by emitting illegal levels of air pollutants, including particulates, carbon dioxide, and other combustibles. Under the terms of the settlement, Unocal will pay a $550,000 civil penalty, spend more than $6.6 million dollars on a Supplemental Environmental Project flare and scrubber system that will significantly reduce ammonia emissions released from the facility and reduce the likelihood of catastrophic releases into the surrounding air. Unocal also will monitor how well its pollution control equipment is working. "This settlement should go a long way towards helping make sure Alaskans are breathing air that is safe and clean," said Lois Schiffer, Assistant Attorney General in charge of the Justice Department's Environment and Natural Resources Division. "The Justice Department is committed to ensuring that no company has an unfair advantage by failing to make the investments necessary to control pollution as required by law." In October 1997, the Justice Department filed a lawsuit in U.S. District Court in Anchorage, on behalf of the Environmental Protection Agency. In the lawsuit, the Department alleged Unocal violated Alaska's federally approved State Implementation Plan by releasing air pollutants in levels above what is allowed by the plant's Clean Air Act permits. The State Implementation Plan, developed by Alaska and approved by EPA, is designed to ensure the State can meet federal air quality standards. The government's lawsuit also alleged that Unocal violated the Clean Air Act's Prevention of Significant Deterioration program by modifying its urea production facility without first obtaining

proper permits or installing the best available pollution control equipment. The Prevention of Significant Deterioration program is designed to protect the air in those areas of the country, like Kenai, that are meeting federal air quality standards. The settlement, if approved by the court, will resolve the government's lawsuit. Chuck Clark, EPA's are pleased that Unocal is environmental benefits and releases of ammonia to the Regional Administrator in Seattle said, "We taking these steps to achieve greater reduce the likelihood of catastrophic Kenai community."

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