The Center for Public Integrity

Fifteen residents of Corpus Christi, Texas — so sickened by pollution they have been deemed crime victims — are asking a federal judge to force Citgo Petroleum Corp. to set up multimillion-dollar trust funds to cover medical and relocation costs, in a case with national ramifications.

A jury in 2007 convicted Citgo of criminal violations of the Clean Air Act, concluding that the company’s Corpus Christi refinery allowed toxic chemicals to drift from two large, uncovered storage tanks into a nearby neighborhood for a decade.

The company was to have been sentenced last month; the Department of Justice has proposed a fine of slightly more than $2 million. Lawyers for the 15 residents, however, asked U.S. District Judge John D. Rainey to grant the residents crime-victim status so they could testify at the sentencing hearing and, perhaps, win compensation from Citgo. Rainey granted that status on Sept. 14 and postponed the hearing.

In a court filing Wednesday, lawyers for the 15 residents are seeking $80,000 from Citgo for medical screening.

They also want Citgo to establish an $11 million trust fund for treatment of cancer or other illnesses suffered by the more than 300 people who have submitted victim impact statements to the court. A court-appointed special master would decide whose expenses should be covered.

Days before Citgo Petroleum Corp. faces its long-awaited sentencing for criminal Clean Air Act violations at its refinery in Corpus Christi, Texas, a Justice Department court filing alleges that a “wide range” of environmental and worker safety violations continue to plague the plant.

Citgo was convicted in June 2007 of two criminal counts stemming from 10 years of toxic emissions from two massive, uncovered storage tanks. Such convictions are rare: The Center for Public Integrity reported last year that Clean Air Act cases have been prosecuted at a far lower rate than Clean Water Act or solid waste cases.

In its filing this week, the Justice Department asks a federal judge to fine Citgo $2,090,000, the maximum allowed under the statute, and put the company on five years’ probation — also the maximum — for illegal emissions of benzene and other hazardous chemicals from the tanks between 1994 and 2004.

The department says the refinery made almost $1.16 billion in profits during that period.

Citgo’s sentencing hearing is scheduled to begin Monday in U.S. District Court in Corpus Christi and could last several days. In an e-mailed statement Friday morning, the company said it “embraces a culture of safety that is reflected in everything we and our employees do. We are proud of our record and of the important role our refineries play in providing good jobs and much needed tax revenue for the communities they serve, including Corpus Christi.”

The Justice Department document alleges that Citgo “has violated a wide range of environmental and worker safety regulations” — as recently as this year in some cases.

A federal court has directed that North Carolina’s Waccamaw River watershed receive $1 million in environmental preservation projects, one piece of a broader federal effort to protect wetlands and enforce the Clean Water Act.

The new case centers on Freedman Farms Inc., a corporate hog farm in Columbus County, N.C.

In February, the company was sentenced to five years of probation and ordered to pay $1.5 million in fines, restitution and community service payments. The farm, the government said, violated the Clean Water Act by discharging hog waste from its 4,800 hogs into a stream that leads directly into the Waccamaw River — rather than to treatment and disposal lagoons. Company president William B. Freedman received six months in prison followed by six months of home confinement.

Now, the Justice Department’s Environment and Natural Resources Division has specified that Freedman Farms must pay its $1 million restitution in five annual payments, starting in January 2013, to the North Carolina Coastal Land Trust, an environmental nonprofit dedicated to land conservation in the Waccamaw watershed.

“The court-ordered restitution … will conserve wetlands for the benefit of the people of North Carolina,” Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environmental and Natural Resources Division, said in a statement.

The land trust hopes to leverage the restitution payments to raise more wetland protection money from state, federal and private funders, said Executive Director Camilla M. Herlevich.

“Since we know we’ll have a few hundred thousand dollars of match every year, it puts us in a competitive position to go seek other grant funds,” she said. “We hope this will be the first of a series of nice things to happen for the Waccamaw.”

The Natural Resources Defense Council condemned eight coal-burning utility companies Tuesday for flouting the Clean Air Act and spending millions to lobby against pollution controls.

In a report, the NRDC detailed how the companies have poured money into blocking or delaying clean air protections. The American public pays the price in the form of illnesses, higher health costs and more than 10,000 deaths annually, the environmental group said.

The report was released on the eve of a Senate vote on a resolution by Sen. James Inhofe, R-Okla., to nullify an Environmental Protection Agency rule aimed at reducing emissions of mercury and other air toxics from power plants.

“The ‘Gang of Eight’ utilities are putting their profits over protecting kids and communities from deadly, dangerous air pollution,” Pete Altman, the NRDC’s climate and clean air campaign director, said during a news teleconference. “The health and welfare of millions of Americans, including children, who are most vulnerable to air pollution, hang in the balance.”

The utilities pinpointed by the NRDC are AEP, Ameren, DTE Energy, Energy Future Holdings, FirstEnergy, GenOn, PPL and Southern Company. They are based in Ohio, Illinois, Texas, Michigan, Pennsylvania and Georgia.

The report uses 2011 emissions data from each of the utilities’ power plants, as reported to the EPA, to calculate health and economic impacts. An analysis done for the NRDC by consulting firm MSB Energy Associates Inc. estimates a toll of 10,400 deaths, 65,000 asthma attacks, 6,600 hospital visits, 3.4 million lost workdays, and $78 billion in total costs to the U.S. economy in 2011.

In the Mississippi River town of Muscatine, Iowa, concerns about a corn processing plant that belches smoke and ash over the South End neighborhood have festered for years.

On Monday, those living in the plant’s shadow took a step that, until recently, would have seemed unlikely at best: They sued the plant’s owner, Grain Processing Corp. — a vital piece of the town’s economy and a political force in Iowa.

For years, the lawsuit alleges, residents have put up with constant pollution that has damaged their property and affected their health. The Center for Public Integrity detailed the persistent haze hanging over the community and the company’s long history of run-ins with regulators as part of its “Poisoned Places” series with NPR last year.

“We’ve reached a tipping point in Muscatine,” said Tony Buzbee, a Houston lawyer with a history of winning high-profile environmental cases who has agreed to represent the residents. “I think that you’re going to see hundreds and hundreds of people who have the courage to stand up and say, ‘We’re in the right, and we’re not going to take it anymore.’ ”

Buzbee joins Jim Larew, who was general counsel to former Gov. Chet Culver, and Des Moines lawyer Andrew Hope in representing the residents, who are seeking to make the case a class action that anyone living within three miles of the plant could join.

The petition filed Monday, Buzbee said, is “just the tip of the iceberg.”  He plans to file hundreds more cases. “It’s going to cost a lot of money,” he said. “It’s going to be a big fight.”

Three separate Center for Public Integrity investigations examining toxic air, green energy contracts and hazards in oil refineries have won 1^st place honors in the Society of Professional Journalists’ prestigious Sigma Delta Chi Awards.

The prizes, among the national winners in a contest attracting more than 1,700 entries, were awarded for:

• Poisoned Places: Toxic Air, Neglected Communities: Produced in partnership with National Public Radio and the Investigative News Network — won top honors for Public Service in Online Journalism. The series explored how, more than two decades after enhancements to the Clean Air Act, many communities still suffer poisoned air and regulatory neglect. The Center’s main stories were written by Jim Morris, Chris Hamby, Ronnie Greene, Elizabeth Lucas and Emma Schwartz.
• Green Energy: Contracts, Connections and the Collapse of Solyndra: Written by Ronnie Greene in partnership with ABC News, won the top honor for Online Investigative reporting. The series of reports documented breakdowns in the process by which the Department of Energy awarded lucrative green energy grants and loans.
• Fueling Fears: Written by Jim Morris and Chris Hamby, won top honors in Online Non-deadline reporting. The reports examined worker and environmental hazards at America’s aging oil refineries.

The national prizes were announced this week, and will be presented at a July 20 ceremony at the National Press Club.

For years, people living in the Mississippi River town of Muscatine, Iowa, have complained about the ash and smoke blowing into their neighborhood from a corn processing plant. State regulators have brought enforcement cases against the company, but the town’s South End neighborhood remains under a haze.

On Tuesday, the U.S. Environmental Protection Agency stepped in, alleging years of violations of air pollution rules at the plant owned by Grain Processing Corp. The letter issued to the company, known as GPC, doesn’t impose penalties, but puts it on notice that the EPA is considering an enforcement case.

GPC spokesman Janet Sichterman said company officials are reviewing the notice and “aren’t in a position to make a comment on it now.”

The action comes as the company is battling the Iowa attorney general, who has alleged separate violations of air and water pollution rules in a lawsuit. A group of citizens, calling themselves Clean Air Muscatine, has filed a petition to intervene in that case, saying the state’s previous actions against GPC have failed to protect people living near the facility.

For many in New England, fresh powdered snow is a welcome sign of the season. For Maine mother Jill Callela, the flakes showcase something much darker — the dirty air her family is breathing.

“OK, we have black snow again,” Callela, 39, said, remembering recent winters when the factory directly across the river from her home in Bradley, Maine, polluted the snow in her yard with what she says was lead-laden soot spewed from its smokestack.

Tests Callela had done have shown elevated levels of lead in the snow, she said. Icy winds sweeping over the Penobscot River behind her home amplified the problem.

“It was in everyone’s house and got into the blowers in our cars,” Callela said. “When we would turn on our heaters it would come through the vents.”

The factory, Old Town Fuel & Fiber, a paper mill, has over the past five years racked up $267,000 in federal air pollution fines for releasing illegal amounts of carbon monoxide, sulfur dioxide and methanol into the air above its facility.

Callela claims her complaints about the mill to state regulators have been ignored even though it is among a number of New England facilities labeled “high priority violators” by the U.S. Environmental Protection Agency. A facility can become a high priority violator, or HPV, by exceeding emission limits, violating a local state or federal order or meeting other criteria developed by the EPA to identify polluters in need of close scrutiny.

An investigation by the New England Center for Investigative Reporting shows that regulators in Maine and nearby states have taken months and even years to sanction facilities violating the Clean Air Act — even those the government itself has called HPVs, such as the Old Town paper mill.