A fight over blended fuels in Iowa will result in a company later acquired by NGL Energy Partners LP of Tulsa paying an estimated $35 million over a 12-month period to satisfy the Environmental Protection Agency.
NGL has been fighting the EPA since 2016. The company acquired Gavilon Energy which was accused by the EPA of violating the Clean Air Act’s renewable fuel standards regulations.
NGL had attempted earlier this year to have the case dismissed but a federal court in the Northern District of Iowa denied the effort in a July 3 ruling. Last week, Gavilon Energy reached an agreement with the EPA regarding terms of a settlement.
In announcing the settlement, NGL said “Such terms will result in Gavilon Energy incurring an estimated cost of up to $35 million over a 12-month period.”
The company said if the courts sign off on the settlement, it should resolve matters between Gavilon Energy and the EPA.
It was in 2011 when Gavilon Energy and one of its suppliers, Western Dubuque Biodiesel LLC allegedly violated lawsdealing with the biodiesel renewable identification numbers or RINs. The RINs in question were sold by Western Dubuque to Gavilon Energy. The EPA investigated filed suit.
