Toxic Power Part 3: Oil
By Gordon Hopkins
The EPA (Environmental Protection Agency) encourages recycling of used oil whenever possible, as an environmentally responsible option, “Recycling and reusing used motor oil is preferable to disposal and can provide great environmental benefits. Recycled used motor oil can be re-refined into new oil, processed into fuel oils, and used as raw materials for the petroleum industry.”
Whether or not used oil can be safely recycled, however, depends on the contents of the oil. One substance that is often found in used oil is polychlorinated biphenyls (PCBs). The presence of PCBs can greatly complicate recycling or disposing of used oil because PCBs are a toxic substance and a known carcinogen.
What Are PCBs?
PCBs are man-made organic chemicals known as chlorinated hydrocarbons. Due to their non-flammability, chemical stability, high boiling point and electrical insulating properties, PCBs were used in hundreds of industrial and commercial applications until manufacturing was banned in 1979.
Due to the longevity of PCBs, they can still be found in a variety of used oil and waste oil. PCBs are especially prevalent in the oil found in transformers and capacitors, as well as oil used in motors and hydraulic systems.
That is why the PCB content must be determined, either through analysis or records, before any used oil can be recycled or otherwise disposed of.
Used Oil Storage Tank
In a memorandum to then-Fairbury Mayor Spencer Brown and the City Council of Fairbury dated August 11, 2022, then-City Administrator Jacob Matthews wrote, “One of the assets listed in Resolution 1199 -‘one (1) storage tank’- was used by the municipal power plant and is geographically located in an area that creates additional difficulty for a current Line Department project; its removal would greatly assist the Line Department. On January 25, 2022 the Line Department received a quote of $129,651 to move, clean, and demolish the Storage Tank (Figure 1: Storage Tank). Selling this non-performing asset with other non-performing assets would create significant value for the City of Fairbury.”
Five days later, the city council voted to approve Resolution 1199.
IES
The contract with Industrial Engineering Solutions (IES) seemed to be the perfect solution. While IES did not actually purchase the storage tank, the company agreed to remove the tank and any oil contained therein, “free of charge.”
It was Matthew’s position that IES would be responsible for ensuring the oil was disposed of properly. On September 1, 2022, he advised FJN in an email, “The plan is for the prevailing party, if there is one, to empty the contents of the storage tank and to dispose of the contents and to do so all according to all applicable state and federal laws. They will then remove the tank accordingly to all applicable state and federal laws.”
When asked if PCBs were present in the oil, Matthews said, “I have only been told by city staff there is oil in the tank. There may be PCBs or other chemicals in it, but until I am able to conduct a more thorough investigation on the matter I am unable to comment on whether there are actually PCBs or other chemicals inside the tank.”
Before demolition of the tank began, an analysis of the oil was completed on October 24, 2022, by Summit Environmental Technologies, Inc. The analysis shows that the oil contains 4.01 ppm (parts per million) of PCBs.
Removing the Oil
IES recruited a number of local residents, all young men, as subcontractors in October of 2022. While they were primarily engaged in removing the enormous, obsolete turbines and generators from the defunct municipal power plant, four were sent across the street to transfer the oil from the storage tank into 55-gallon polymer barrels.
FJN has spoken to some of the locals who worked inside the tank. They have asked their identifies not be released on advice of legal counsel.
They said the oil was extremely thick, far too thick to pump. Instead, they were ordered by IES management to climb inside the tank and scoop the oil out with buckets.
According to those young men, they spent seven or eight hours a day for “several days,” standing in the oil, scooping it out with buckets and into the barrels. They were not provided with any protective gear but did this process in their street clothes.
The mother of one of the workers told FJN, “I saw them. They were completely covered in it.”
The workers took photos of themselves after working in the oil with their phones. They provided some of those photos to FJN.
They also insist they were never told about the presence of PCBs.
Midwest Torching and Maintenance
In December of 2022, two months after they arrived in Fairbury, IES left town, leaving the workers unpaid and the storage tank only partially demolished.
In January of 2023, the city hired another company, Midwest Torching and Maintenance LLC, of Clive, Iowa, to complete the job. The city agreed to pay $6,000.
The job was completed within a few days and, for the most part, went smoothly. The only hiccup occurred at about noon on Thursday, January 26, when the oil tank caught fire.
The Fairbury Rural Fire Department was actually delayed for several minutes by a train before they were able to reach the blaze. Assistant Fire Chief Barry Schwab told FJN, “By the time we arrived on scene, the fire had pretty well been extinguished already.”
According to Schwab, the contractors were using a cutting torch and, “An errant spark landed in a part of the tank that proved to be readily combustible.”
Staff from Midwest Torching and Maintenance managed to get the fire put out before firefighters arrived at the scene.
Storing the Oil Until Disposal
The barrels of oil were kept in a fenced in area of city property, across the street from the power plant.
On April 11, 2023, FJN observed that some of the oil barrels had been removed from city property. When asked where they had been taken, Brown responded, again by Facebook Messenger, “If I recall it’s an asphalt company that is taking some, we had someone in thayer Co (sic) take some for their shop as well.”
“They are only getting a few at a time because of the weight, at probably 10lbs a gallon, those barrels are probably 500lbs+ each,” wrote Brown. He did not provide the names of who had taken the oil or any other details.
Site Visit
On April 24, 2023, NDEE (Nebraska Department of Environment and Energy) conducted a site visit.
According to the report written by Environmental Specialist Brian Gorman, “The 40 drums still remaining on-site contained the heavy bottoms that had to be scooped out of the bottom of the tank. The rest of the used oil had already been picked up by an asphalt company. He (Mayor Brown) could not remember their name.”
Gorman also wrote, “I asked if Mr. Brown could provide a copy of an analysis of the used oil. He said an analysis had been done but he did not have access to it at that time. He said the PCB levels were in the single digits. I provided Mr. Brown a business card and asked him to email me the analysis if possible. I also agreed to provide Mr. Brown with some contact information for used oil recyclers and waste haulers that could pick up the drums. We discussed possible testing requirements if the drums could not be disposed of as used oil.”
Shortly after this, the oil was moved inside a shed on city property.
FJN requested a copy of the oil analyses and was told by Brown that the city did not have it, that it was still in the possession of IES. Attempts by both the city and FJN to reach IES were unsuccessful.
The city denied multiple requests from FJN for access to the oil.
Oil Analysis
The test results were eventually sent to NDEE but not until 2024.
The city contacted Tri State Oil Reclaimers, Inc, a company based in Cheyenne, Wyoming, that recycles used oil. The anticipated cost for disposal of the oil was $10,000 and was approved by the city council on January 2, 2024.
FJN spoke with Charles Welty, president of Tri State, on January 5, 2024. Welty said Tri State would not test the oil because it is too thick to be recycled and instead would be solidified and disposed of in a municipal landfill.
When asked how he knew the oil is safe to be landfilled, Welty said that he was going entirely by what the city had told him, “We’re going by his customer knowledge.”
On January 6, 2024, FJN advised Brown via email, “I spoke to the president of Tri State yesterday. He said it is most likely bunker fuel, which is too thick to be recycled. As a result, they will NOT be testing it. They will be landfilling it.”
Upon learning this, Gorman called Brown on January 23, 2024. According to NDEE’s documentation of the phone call obtained by FJN, “Mayor Brown said it was his understanding that Tri-State Oil Reclaimers did intend to recycle the used oil and he had not heard otherwise.”
On January 25, Gorman called Brown again. According to documentation of the call, “I told Mr. Brown that unless he could find another used oil recycler who would be able to manage the drum contents as used oil, the City of Fairbury would have to conduct an analysis to determine if it is a hazardous waste.”
That day, Mayor Brown sent an email informing the city council and some city staff that the oil would require testing.
The next day, on January 26, 2024, Fairbury’s Electric Line Superintendent, Nate Francis, emailed Brown, “Hey, I did some digging and found the company that tested the oil for our great contractors. Jebro Inc. had sent it off to Summit for analysis, for both the diesel and the oil.”
Gorman also emailed Brown on January 26, “I just looked up the TSCA requirements for used oil burning and apparently if PCB’s (sic) are over 2 ppm but under 50 ppm, the used oil must be managed as an off-specification used oil. Since NDEE is not authorized for the TSCA program, I am only superficially familiar with their requirements. EPA (Environmental Protection Agency) enforces the TSCA (Toxic Substances Control Act) program in Nebraska.”
FJN asked Brown if the had been in touch with the EPA. Brown said, “Brian did not tell me to call the EPA. Brian and I discussed on the phone the proper disposal of the oil and our plan going forward. I’m following what the state says to do.”
In an in-person interview on January 31, Brown told FJN, “I want to get rid of it. I don’t want to deal with it anymore. I mean, this has been a very, very stressful time-waster for me.”
Tri-State Oil Reclaimers backed out of the deal. On May 10, 2024, the oil was removed by Sunbelt Solomon, a company approved by the EPA to recycle and dispose of used oil.
Dangers of PCBs
According to the EPA, “PCBs have been demonstrated to cause a variety of adverse health effects. They have been shown to cause cancer in animals as well as a number of serious non-cancer health effects in animals, including: effects on the immune system, reproductive system, nervous system, endocrine system and other health effects. Studies in humans support evidence for potential carcinogenic and non-carcinogenic effects of PCBs.”
This is why disposal of used oil containing PCBs is regulated. The EPA notes, “PCBs do not readily break down once in the environment. They can remain for long periods cycling between air, water and soil. PCBs can be carried long distances and have been found in snow and sea water in areas far from where they were released into the environment.”
The CDC (Centers for Disease Control) also warns the public about the adverse health impact of PCBs, pointing out it can easily end up in the food we eat, “PCB levels are highest in animals high up in the food chain.”
People can also be exposed to PCBs just by breathing it. The CDC warns, “If you breathe air that contains PCBs, they can enter your body through your lungs and pass into the bloodstream.”
Possible Penalties for Burning Oil with PCBs
Off-specification used oil, such as that from the demolished storage tank, cannot be burned in an ordinary heater. Instead, the EPA requires that it be burned only in an industrial furnace or boiler approved for such use. There are potential penalties for improperly or disposing of such oil.
According to Kellen Ashford, EPA Public Information Officer, “Many factors go into determining an appropriate penalty for used oil violations. There is no set penalty for knowingly burning used oil contaminated with PCBs. There are two statutes that can be applicable for used oil in this scenario. EPA’s Toxic Substances Control Act (TSCA) Civil Penalty Policy describes how penalties can be assessed through the TSCA program: https://www.epa.gov/enforcement/polychlorinated-biphenyls-pcb-penalty-policy.
“With this being said, used oil is federally regulated by TSCA and the PCB Regulations starting at 2 ppm. Used oil over 50 ppm may not be burned for energy recovery. At lower PCB concentrations (2 ppm to < 50 ppm), used oil may be burned as a fuel, subject to restrictions listed in Title 40 of the Code of Federal Regulations (CFR) section 761.20(e), 40 CFR part 279, and any applicable state and local laws,” wrote Ashord in an email to FJN. “40 CFR 761.20(e)(3) states that used oil containing any quantifiable levels of PCB may be burned for energy recovery only in the combustion facilities identified in paragraph (e)(1) of this section when such facilities are operating at normal operating temperatures (this prohibits feeding these fuels during either startup or shutdown operations). Owners and operators of such facilities are ‘burners’ of used oil fuels. Paragraph (e)(1) states that only “Burners identified in 40 CFR 279.61(a)(1) and (2)” may burn used oil contaminated with quantifiable (2ppm or above) PCBs. The act of burning PCB oil in a space heater specifically would need to meet the requirements set out in 40 CFR 279.23.”
FJN recently reached out to NDEE and asked if they knew the name of the asphalt company that had taken some of the oil in 2023 and if that company was capable of handling off-specification oil. As of press time, no response has been received.
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