Groups appeal state permit for BP oil refinery

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By Beth Boehne

Story Created: May 13, 2008 at 3:54 PM EST

Story Updated: May 13, 2008 at 3:54 PM EST

WHITING, Ind. (AP) — Two watchdog groups are appealing a state air permit issued for the planned expansion of BP's oil refinery on Lake Michigan, contending that it doesn't adequately protect the health of low-income and minority residents.

The petition seeking administrative review filed by the Hammond-based Calumet Project and the Global Community Monitor seeks to halt to the Whiting refinery's $3.8 billion expansion.

The groups claim in their complaint that a 1994 executive order requires the U.S. Environmental Protection Agency and state environmental officials to address environmental justice.

They allege that the Indiana Department of Environmental Management did not allow the public ample time to review the permit and states that the permit fails to protect nearby poor and minority residents from increased air pollution.

"We wanted to go with the environmental justice issue since we thought that was completely overlooked in this permit," said Bessie Dent, a member of the Calumet Project.

BP expects the project to increase sulfur dioxide, lead and particulate matter emissions.

The Indiana Office of Environmental Adjudication, which received the petition Saturday by fax, has deemed the petition incomplete because the actual permit was not attached as required.

The office — whose environmental law judges review IDEM decisions — is awaiting the arrival of the hard copy before taking any action.

BP spokeswoman Valerie Corr said the permit has followed the letter of the law.

"Our air construction permit is valid," Corr said. "The permit underwent a thorough and rigorous review, and we believe it will stand up to scrutiny."

The faxed petition requests a temporary stay, meaning BP may have to halt construction of the expansion should a judge grant the delay.

IDEM spokesman Robert Elstro said the state agency "firmly believes the final BP source modification air permit meets all applicable state and federal requirements."

A similar complaint has been filed with the EPA, the petition said.

BP began its expansion work on May 1, the same day it received IDEM approval of its air permit construction. The permit lets the refinery build or modify equipment, but environmentalists say it allows too many greenhouse gases and too little control of flare emissions.

Kim Ferraro, an attorney with the Legal Environmental Aid Foundation of Indiana, said a coalition of environmental groups are exploring state and federal appeals of the permit. The groups expect to make an announcement before May 19, the deadline for appealing the permit.

BP has said the expanded refinery would be the nation's top processor of heavy high-sulfur Canadian crude oil, boosting its production of gasoline, diesel fuel and jet fuel by 15 percent to about 4.7 billion gallons a year. Some 1,700 people work at the 119-year-old refinery.

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