EPA Fines Culbertson, Nebraska, company $119K for alleged chemical accident prevention violations

Editor's note: The Gazette has reached out to Kugler Oil for comment and will update this story as details become available.

LENEXA, KAN. (DEC. 13, 2024) – Kugler Oil Company has agreed to pay a $119,000 civil penalty to resolve alleged violations of the federal Clean Air Act’s chemical accident prevention provisions at its liquid fertilizer manufacturing business in Culbertson, Nebraska.

According to the U.S. Environmental Protection Agency (EPA), the facility manufactures, stores, sells, and distributes anhydrous ammonia, a regulated toxic substance, and failed to comply with regulations intended to protect workers and the surrounding community from accidental releases.

Anhydrous ammonia presents a significant health hazard because it is corrosive to the skin, eyes, and lungs. High levels of exposure may lead to choking and death. Fires or explosions may result if anhydrous ammonia is ignited.

“Compliance with Clean Air Act chemical accident prevention provisions saves lives,” said EPA Region 7 Enforcement and Compliance Assurance Division Director David Cozad. “These enforcement actions protect communities and level the playing field with businesses who are following the rules.”

During an August 2023 inspection, EPA determined that the company failed to abide by chemical accident prevention regulations, including failure to develop a Risk Management Plan, properly coordinate with first responders, and develop written operating procedures for temporary or emergency operations. EPA says that Kugler Oil Company took the necessary steps to return the facility to compliance after the inspection.

The Clean Air Act’s Risk Management Program regulations require facilities that use regulated toxic and/or flammable substances to develop a Risk Management Plan that identifies the potential effects of a chemical accident; identifies steps a facility is taking to prevent an accident; and spells out emergency response procedures should an accident occur. These plans provide valuable information to local fire, police, and emergency response personnel to prepare for and respond to chemical emergencies in their community.

EPA has found that many regulated facilities are not adequately managing the risks that they pose or ensuring the safety of their facilities in a way that is sufficient to protect surrounding communities. Approximately 150 catastrophic accidents occur per year in regulated facilities, resulting in fatalities, injuries, significant property damage, evacuations, sheltering in place, or environmental damage. Many more accidents with lesser effects also occur, demonstrating a clear risk posed by these facilities.

Reducing risks from accidental releases of hazardous substances at industrial and chemical facilities is a top priority for the Agency, as identified by EPA’s National Enforcement and Compliance Initiatives in 2023.