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

Updated 6:30 p.m. Saturday, Dec. 14

LENEXA, Kan. – On Friday, Dec. 13, the U.S. Environmental Protection Agency (EPA) issued a statement announcing that Kugler Oil Company of McCook, Neb., had agreed to pay a $119,000 civil penalty. The settlement is associated with 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 complaint, the Culbertson plant manufactures, stores, sells, and distributes anhydrous ammonia, a regulated toxic substance. In doing so, the statement alleges that Kugler “failed to comply with regulations intended to protect workers and the surrounding community from accidental releases.”

When reached for comment, Kugler Executive John Kugler replied, “At no time did operational risks exist at our Culbertson, Neb. facility and put the public at risk.” Kugler added, “Safety and training for our local responders and employees to be aware of materials and potential hazards in our daily operation is ongoing. Safety for our community and employees is a number one concern.”

The EPA announcement points out that 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 Seven Enforcement and Compliance Assurance Division Director David Cozad. “These enforcement actions protect communities and level the playing field with businesses following the rules.”

During an August 2023 inspection, the 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. The EPA statement says, “Kugler Oil Company took the necessary steps to return the facility to compliance after the inspection.”

About the plant, Kugler responded, saying, “Kugler has complied with EPA’s reporting and paperwork requirements. We have always worked to carefully navigate the ever-changing opinions and rules of the Federal government requirements.”

The EPA announcement included background information explaining that 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. Those plans, according to the statement, provide valuable information to local fire, police, and emergency response personnel to prepare for and respond to chemical emergencies in their community.

EPA explains further 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."

In 2023, the EPA's National Enforcement and Compliance Initiatives identified reducing risks from accidental releases of hazardous substances at industrial and chemical facilities as a top priority.