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MarketWatch: EPA: BP, Shell to pay $1.5 million in air quality case

Last Update: 6:40 PM ET Oct 5, 2006

WASHINGTON (MarketWatch) — The U.S. Environmental Protection Agency has reached settlements with units of BP PLC (BP) and Royal Dutch Shell PLC (RDSA) to address allegations that the oil firms produced gasoline that failed to meet regulatory clean-air requirements, the agency said Thursday.

BP agreed to pay a civil penalty of $900,000 and Shell agreed to pay a civil penalty of $600,000.

The settlements resolve alleged violations of various fuel standards that occurred from 1999 through 2004 at retail outlets, terminals and refineries located throughout the U.S., the EPA said. The agency said a number of violations involve the summertime gasoline standards intended to reduce smog-causing hydrocarbon emissions. Some violations were self-reported by the companies while others were discovered through the EPA’s inspection program.

“These settlements underscore both the importance of enforcement of EPA standards to protect the public health, and the value of vigorous environmental enforcement efforts to address violations at multiple facilities,” said Granta Y. Nakayama, the EPA’s assistant administrator of enforcement and compliance assurance.

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