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Tuesday, December 24, 2002

Ashland must pay for fire at refinery



The Associated Press

MINNEAPOLIS - A federal judge on Monday ordered Ashland Inc. to pay more than $9.1 million in fines and restitution over an explosion and fire at its refinery in St. Paul Park, and to pay millions more to upgrade the refinery.

On May 16, 1997, workers were pumping hydrocarbons into the refinery's sewer system when vapors escaped through an improperly sealed manhole and ignited in a fireball. A second explosion involving liquid that erupted from the manhole injured six company firefighters, one severely.

On May 13 of this year, federal prosecutors charged Ashland with two violations under the Clean Air Act, and with submitting a false statement to the Minnesota Pollution Control Agency claiming the sewer system complied with the Clean Air Act.

Under a plea bargain entered the same day, Ashland agreed to plead guilty to two of the charges and to a deferred prosecution on the third.

"This was a case where there was tremendous personal cost arising from Ashland's violation of the environmental laws that govern its practices," U.S. Attorney Thomas Heffelfinger said. "The environment was harmed, of course, but one cannot escape the personal toll this case had on Ashland's employees and their families.

Under the terms of the plea agreement, U.S. District Judge James Rosenbaum on Monday sentenced Ashland to pay:

A $1.5 million criminal fine.

$3.5 million plus lifetime medical coverage and other benefits to the most seriously injured firefighter, an Ashland employee.

$10,000 to each of five other Ashland employees, who were less severely injured.

$50,000 each to the three fire departments that responded, as well as to Ashland's own emergency response team;

About $4 million to upgrade all process sewers, junction boxes and drains at the St. Paul Park plant, which is now owned by Marathon Ashland Petroleum LLC, based in Findlay, Ohio, which a joint-venture between Covington, Ky.-based Ashland Inc. and Houston-based Marathon Oil Company.



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