Propane/Butane Storage Company Near RPV Settles with EPA

The operators of a liquefied petroleum gas storage facility in San Pedro invested more than $7 million to resolve federal safety violations and will pay a $260,000 fine, the U.S. Environmental Protection Agency announced today.

The violations were discovered during an EPA investigation of Rancho LPG, 2110 N. Gaffey St., that began in April 2010. LPG is also known as propane or butane.

The company addressed the problems and now adheres to risk management plan requirements -- a regulation under the federal Clean Air Act, the EPA said.

"When a company handling high-risk materials operates in close proximity to a neighboring community, it's critical to take steps to safeguard the residents," said Jared Blumenfeld, EPA's regional administrator for the Pacific Southwest. 

"Since EPA began its enforcement action over a year ago, Rancho LPG has invested over $7 million in plant improvements to bring its facility into compliance with federal environmental laws and to provide additional safety measures."

However, a San Pedro-area homeowners group decried the EPA fine as "a slap on the wrist."

"In the words of JFK during the steel crisis, this reflects a reckless and irresponsible defiance of the public interest," said attorney Noel Weiss, spokesman for San Pedro Peninsula Homeowners United.

According to the group, the company's propane and butane tanks contain over 25 million gallons of highly hazardous gasses, "enough to destroy a huge number of homes in the area, with the potential to injure and kill thousands. It also has the clear opportunity to decimate the Ports of L.A. and Long Beach."

EPA investigations found that Rancho did not have complete information for evaluating potential seismic stresses at the site, failed to analyze the potential loss of its water supply in the event of an earthquake, and failed to properly inspect and test equipment, including tanks and drain systems used to contain accidental releases.

Improvements include new safety controls, tank inspections, seismic upgrades, and improved coordination with local emergency responders, the EPA said.

When properly implemented, risk management plans help prevent chemical releases and minimize their potential impacts at facilities that store large amounts of hazardous substances and flammable chemicals.

Facilities are required to update and resubmit their risk management plan at least once every five years. The information is used by the EPA and state and local agencies to help assess chemical risks to surrounding communities and to prepare for emergency responses.

--City News Service