News Releases - 2001

Company Ordered to Pay Highest Civil Penalty to Date

Springfield, Ill. -- In a written decision released last week by the Illinois Pollution Control Board, Panhandle Eastern Pipe Line Company will be required to pay a penalty of $850,000 for violating air pollution standards at its Glenarm, Illinois station.

It is the largest penalty ever awarded by the Board in enforcement proceedings brought before its jurisdiction. The Illinois Environmental Protection Agency and the Illinois Attorney General's Office litigated the case last year.

Panhandle, headquartered in Houston, Texas, operates a natural gas compressor station in Glenarm. The Board found that for approximately ten years, the station emitted Nitrogen Oxides (NOx) at levels that triggered control requirements under the Prevention of Significant Deterioration (PSD) program. The PSD program consists of requirements that govern the construction of new major sources of air pollution, or major modifications to existing major sources, in those areas where national ambient air quality standards are being met in accordance with the Clean Air Act. The PSD program is designed to balance economic growth with the preservation of existing clear air resources and can require affected sources to meet stricter emission standards when certain pollutants, such as NOx, are emitted beyond allowable levels.

"We think this decision sends a strong message that the regulated community must comply with environmental requirements in a timely manner" said Illinois EPA Director Renee Cipriano. "The Illinois EPA will not hesitate to enforce against companies who have a history of failing to meet emission standards or derive significant profits through their noncompliance."

In additional to the civil penalty, Panhandle was ordered to pay costs and legal fees in the approximate amount of $115,000, for a total of $965,000 to be paid by the company to the State of Illinois.