Shell Oil Co. reached a $5.8 million settlement with environmental groups on Thursday and agreed to significantly reduce greenhouse gas emissions at a Gulf Coast refinery, the Associated Press reported.
The agreement still must be approved by a federal judge, but if approved it would reduce greenhouse gas emissions at the Deer Park, Texas, refinery and chemical plant by 750,000 pounds per year for the next three years. The monitoring of air quality also would be improved, according to the Sierra Club and Environment Texas, which filed suit against Shell early last year.
“We strive to operate in compliance with all permits and regulations,” Shell said in a statement. “We are pleased that we have reached an agreement with the citizen groups to resolve the matter, avoid continued litigation and provide benefits in the public interest.”
“This settlement agreement represents a major victory in the fight for clean air on Texas’s Gulf Coast,” the Sierra Club’s Neil Carman told the Associated Press. “We urge other oil and chemical companies in the region to take note of Shell’s willingness to work constructively with us.”
Shell said the settlement was consistent with plans to cut emissions at the Deer Park site. The monetary penalty will be used to fund health projects in Texas.