Murphy Oil Reaches Settlement with EPA Over Clean Air Act

The U.S. Environmental Protection Agency and the U.S. Justice Department said Tuesday that Murphy Oil USA Inc., part of Murphy Oil Corp. of El Dorado, has settled with the government over alleged violations to the Clear Air Act at two petroleum refineries.

Per the settlement, Murphy will pay a $1.25 million civil penalty and will spend more than $142 million over the next nine years to install new and upgraded pollution reduction equipment at the refineries.

Murphy will also spend an additional $1.5 million on a supplemental environmental project, according to a news release from the EPA and Justice Department.

"After several years of negotiation with the EPA and the states of Louisiana and Wisconsin, we are pleased to reach an agreement on a consent decree," Tom McKinlay, Murphy Oil USA's senior vice president of U.S. manufacturing, said in a news release.

"The terms of the agreement are similar in nature to those of consent decrees that currently cover 90 percent of U.S. refining capacity," he said.

The EPA's complaint alleged violations at refineries in Meraux, La., and Superior, Wisc. Per the deal, Murphy will pay the U.S. government $625,000, the state of Wisconsin $229,687.50 and the state of Louisiana $395,312.50.

In July, Murphy announced that it was selling its refinery business.