Re: Carol Browner Comments on Koch Fine

One of EOTT's top priorities is to excel in environmental compliance because
that is the right thing to do and because we want to be a good neighbor. We
do not need any other reasons...but in case we needed one more, please read
Ms. Browner's remarks below.

Also, the Secretary of EPA's remarks vividly demonstrate the value of good
relationships, open communications and mutual respect between EOTT and
environmental agencies. Al Hugh, Paul Newman and the EH&S team along with
EOTT field management and employees have a great track record of doing just
that. And we obviously intend to redouble our efforts to continue to improve
that spirit of cooperation and enhance that mutual respect.

Carol M. Browner, Administrator Environmental Protection Agency Remarks
Prepared for Delivery
Clean Water Act Enforcement Press Conference

Washington, D.C.
Jan. 13, 2000

Good afternoon.
From Day One, this Administration has been dedicated to the principle
that corporations
must be held accountable for damage they cause to the environment. It's
this simple: You pollute, you pay.
We will not allow companies to profit at the expense of the environment
and public health
With that in mind, today, EPA and the Justice Department are announcing
the largest civil fine ever imposed against a single company for
violations of environmental law -- a $30- million civil penalty against
Koch Industries of Wichita, Kansas.
I want to thank Texas State Attorney General John Cornyn for joining EPA
in the suit that brought this settlement about. I also want to thank
Attorney General Reno and the Justice Department for all their help with
today's action and all my colleagues at EPA.
This has been one of our most difficult and contentious environmental
actions ever. It wasn't until the consent decree was even signed that we
got a map. It wasn't until we got a judge to rule the company was liable
that serious discussions began.
Koch Industries owns and operates 35,000 miles of pipeline in the
Midwest and South that carry crude oil and other related products,
making it the largest pipeline company in the country.
An EPA investigation found that over a seven-year period from 1990 to
1997 Koch illegally discharged more than three million gallons of crude
oil from its pipelines and into the ponds, lakes, rivers and shorelines
of Texas, Oklahoma, Kansas, Louisiana, Missouri and Alabama.
These spills occurred in more than 300 separate locations. EPA charged
that this pollution could have been -- and should have been -- prevented
by Koch Industries through the proper operation and maintenance of their
pipelines.
In Payne County Oklahoma home of Oklahoma State University over 221,000
gallons were released resulting in an oil spill that traveled 25 miles
to Keystone Lake, a popular recreational facility.
In Corpus Christi Bay, 90,300 gallons spilled, resulting in the oiling
of migratory birds and the killing of thousands of fish.
In a rural community northeast of Wichita, Kansas, part of a public
water supply system was forced to shut down as a result of over 78,000
gallons of unleaded gasoline spilling into a nearby creek.
In Grayson County, Texas just north of Dallas-Fort. Worth nearly 63,000
gallons spilled into a creek that flows into the Hagerman National
Wildlife Refuge. This Refuge is a popular birding area where several
endangered species can be seen.
With today's settlement, Koch Industries commits to take actions that
should prevent this from happening again.
Their failure to invest in appropriate pollution prevention mechanisms
led to this fine and the millions of dollars they will now have to spend
to bring their systems into compliance.

Besides the $30-million civil penalty which will be split between the
federal government and the state of Texas Koch also has agreed to spend
$5 million on environmental projects in the states it polluted.
$1.5 million will go to buy and preserve wetlands or wildlife habitats
in Kansas and Oklahoma. $2.5 million will go to Texas for environmental
projects to be carried out under the direction of the state. And
finally, $1 million will be used to pay for a pipeline safety study in
Texas and Oklahoma.
The company will also hire an independent auditor who for a minimum of
three years will inspect and report on whether the company is meeting
the requirements of this settlement.
This Administration has pledged to protect public health and preserve
the environment by making sure there is no profit in pollution.
You pollute. You pay. It's that simple.