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Wednesday, October 3, 2007

State orders Bango Oil to stop production



Kim Lamb • LVN file photo Bango Oil, located west of Fallon, was ordered to shut down by the Nevada Department of Environmental Protection.
Kim Lamb • LVN file photo Bango Oil, located west of Fallon, was ordered to shut down by the Nevada Department of Environmental Protection.ENLARGE
Kim Lamb • LVN file photo Bango Oil, located west of Fallon, was ordered to shut down by the Nevada Department of Environmental Protection.
Bango Oil, the oil re-refining plant located west of Fallon that has been open less than a year, was issued a stop order by the Nevada Department of Environmental Protection's Bureau of Air Pollution Control Thursday.

The order was issued after NDEP received a report on source emissions testing performed in July by a third-party certified testing firm in Oregon.

"The NDEP-BAPC's review of the Report indicates that Bango failed to conduct source testing under the proper operating conditions, failed to demonstrate compliance with permitted emissions limits, and failed to report excess emissions that occurred during source testing," the stop order letter stated. "The tests also provide evidence that emissions of reduced sulfur compounds from process heaters are sufficient to present an odor problem."

Ironically, the plant has been closed down since the early morning of Sept. 25 due to a mechanical problem.

"We had to shut the plant down because of heater issues," said Ron Bell, general manager of Bango Oil. "We just kind of beat NDEP to the punch by shutting down three days early."

Bell tried to find the positive in the situation by saying that while the shutdown is "very costly, it gives me a chance to get some maintenance done."

Bango Oil has been the target of residents living along the Carson Highway who claim the oil-refinery is the cause of a noxious odor.

"I'm telling you it's there," Cadet Road resident Don Mello told the Churchill County Commission in August. "There's no question - any idiot knows where it's coming from, but how do we prove it?"

County commission meetings in August and September regarding Bango Oil brought out dozens of residents attesting to the odor and calling for action.

In the stop order, NDEP states process heaters numbers 1 and 2 were tested at 41 percent and 48 percent of their permitted fuel consumption. Even at reduced operating levels, NDEP claimed the systems exceeded permitted emissions limits for particulate matter, carbon monoxide and volatile organic compounds.

"System 2's carbon monoxide and volatile organic compound exceedance provides evidence of incomplete combustion resulting in excess VOCs (volatile organic compounds) as a possible cause of odors," the stop order states. "Test results for emissions of reduced sulfur compounds provide additional evidence of potential odor problems. Those results show that six compounds ... are each present in concentrations well above the thresholds known to generate noxious odors."

"Those odors are nuisance violations," said Dante Pistone, public information officer with NDEP. "There are no environmental health effects."

Bell said when he and the owners meet with NDEP today, he will explain that heater number 1 was operating at 85 percent, not 41 percent. He said when the permit was initially obtained, the company guessed at the projected fuel and flow rates for each heater.

"When we do source testing we can modify those standards," Bell said. Heater number 1 was the heater that failed last week.

At a commission meeting in early September, co-owner Phil Solaro said a new direct thermal oxidizer and burner would be installed the week of Sept. 24, which would raise temperatures in the process water treatment system, eliminate more oil from the steam output and reduce odor emissions.

Bell said the oxidizer arrived at Bango Oil Sept. 28 and was completely installed Tuesday. However, the company has yet to fire up the new equipment due to the stop order.

NDEP cited the delay in installing the oxidizer as one reason for the stop order.

Pistone said before Bango Oil can start operations again, the company will have to show NDEP what it's done to solve the problems.

Bell said the refinery is scheduled to perform another source test Oct. 15, "if they let us fire back up."

Bango Oil had not appealed the stop order as of Tuesday afternoon, but the company is scheduled to meet with state officials in an enforcement conference this morning.


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