MarketWatch: EPA alleges clean-air violations at former Shell plant: "The U.S. Environmental Protection Agency said preliminary findings showed that Merit Energy Co. and a Royal Dutch Petroleum Co. (RD) unit violated the Clean Air Act at a sour gas processing plant": Tuesday 4 October 2005

CHICAGO (MarketWatch) -- The U.S. Environmental Protection Agency said preliminary findings showed that Merit Energy Co. and a Royal Dutch Petroleum Co. (RD) unit violated the Clean Air Act at a sour gas processing plant in Manistee, Mich., that was formerly owned by Shell and is now operated by Merit.

In a press release Tuesday, EPA Region 5 alleged that from 1996 through 2000, Shell Exploration & Production Co. modified the plant "significantly" and increased sulfur dioxide emissions without getting a permit. The EPA also alleges that a sulfur dioxide impact analysis was not completed before the plant was modified.

To resolve these issues, the EPA may issue a compliance order, assess an administrative penalty or bring suit against the company. Merit and Shell have 30 days from receipt of the notice to meet with the EPA to discuss and resolve the allegations. Representatives from Shell weren't immediately reachable for comment.

Sour gas is natural gas containing hydrogen sulfide, and removal of the hydrogen sulfide produces sulfur dioxide as a byproduct. Exposure to sulfur dioxide can impair breathing, aggravate existing respiratory diseases like bronchitis and reduce the ability of the lungs to clear foreign particles.

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