ANCHORAGE (AP) -- The state Department of Environmental Conservation and Tesoro have reached a settlement over air quality violations detected at the company's oil terminal facility in Anchorage.
DEC contended that Tesoro violated state air quality laws and the terms of its air quality permit by failing to properly maintain emission control equipment and by operating its petroleum terminal facility in a way that exceeded the design capacity of the emission control equipment.
Under terms of the agreement, Tesoro will pay a $123,000 penalty and invest $170,000 in upgrades to reduce air emissions from transfer pumps at its Port of Anchorage oil terminal facilities.
Tesoro also agreed to contribute $70,000 to the American Lung Association of Alaska for air quality-related projects in the Anchorage area, donate $30,000 in air emissions monitoring equipment to DEC, and improve operational control and maintenance of air pollution control equipment through better training and inspection procedures.
Tom Chapple, DEC director of air and water quality, said Tesoro acted quickly to identify and fix problems when notified of the violations.
Before any settlement discussions, the company installed floating roofs on fuel storage tanks to address the vapor problem, Chapple said.
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