Sunoco to pay $12M fine, gets green light to restart construction on Mariner East 2 pipeline

HARRISBURG >> The Pennsylvania Department of Environmental Protection (DEP) Thursday announced it has issued a $12.6 million civil penalty to Sunoco Pipeline, LLP (Sunoco) for permit violations related to the construction of the Mariner East 2 pipeline project.

As a result of the deal, the state agency has lifted a ban on construction on the controversial pipeline that will deliver hundreds of thousands of barrels of ethane, propane and butane across the full width of Pennsylvania, through large swaths of Delaware and Chester counties, to the former refinery site in Marcus Hook.

DEP and Sunoco entered into a Consent Order and Agreement (COA) memorializing the penalty. As a result of the strict Consent Order and Agreement, which includes a historic civil penalty and a stringent compliance review, DEP has lifted the order suspending DEP-permitted operations.

“Throughout the life of this project, DEP has consistently held this operator to the highest standard possible,” said DEP Secretary Patrick McDonnell. “A permit suspension is one of the most significant penalties DEP can levy. Our action to suspend the permits associated with this project, and the collection of this penalty, are indicative of the strict oversight that DEP has consistently exercised over this project.

“Today’s announcement is by no means the end of DEP’s oversight. Since the permit suspension over a month ago, Sunoco has demonstrated that it has taken steps to ensure the company will conduct the remaining pipeline construction activities in accordance with the law and permit conditions, and will be allowed to resume. DEP will be monitoring activities closely to ensure that Sunoco is meeting the terms of this agreement and its permits.”

Mariner East 2 has been under consistent attack by community groups opposed to its routing through densely populated areas and in close proximity to elementary schools. They have been seeking an independent risk assessment study of the project. Delaware County Council is considering performing such a study. State Sen. Andy Dinniman, D-19 of West Whiteland, has been pushing Gov. Tom Wolf for a similar study at the state level.

DEP issued an administrative order to Sunoco suspending construction activities related to DEP-permitted operations on Jan. 3, 2018. The order contained detailed facts and findings related to the violations, and 21 specified performance obligations. In response to the Jan. 3 order, Sunoco submitted an Initial Response on January 12, 2018, as well as two supplemental responses on January 22 and 29, 2018 in response to DEP requests for additional information and clarification. Sunoco also submitted numerous exhibits with additional information required by the Order. These included an extensive revised Operations Plan setting forth additional measures and controls Sunoco will put in place to ensure that all permit conditions will be followed at all times moving forward, as well as additional measures and controls that Sunoco will implement to minimize inadvertent returns and water supply incidents.

After reviewing all submitted materials, and conducting extensive additional inspection activities since the suspension was issued, DEP has approved the submissions as meeting all of the requirements to submit information in the January 3, 2018 Order. Information about the violations as well as Sunoco’s submissions to the Department can be viewed at: http://www.dep.pa.gov/Business/ProgramIntegration/Pennsylvania-Pipeline-Portal/Pages/Mariner-East-II.aspx.

In addition, the civil penalty resolves the violations that were noted in the January 3, 2018 Order and violations identified through Sunoco’s response to the order. Pursuant to the COA, Sunoco will withdraw its appeal of the January 3, 2018 Order, which had been filed on Friday February 2, 2018.

The $12.6 million penalty will go to the Clean Water Fund and the Dams and Encroachments Fund. The penalty is one of the largest civil penalties collected in a single settlement.

“DEP will continue to monitor and enforce the conditions of the permits, and will take necessary enforcement actions for any future violations,” said McDonnell. “If a resident should witness pollution from the pipeline affecting streams or other waterways, then please alert DEP at 1-800-541-2050.”

This is a developing story. Check back for more details.