EPA Slows Down on Permit new!
Oil Company Perks:
From Murphy Oil With Profit
9/15/99
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The Murphy Oil Corporation's refinery in Superior passed another hurdle in its path toward permission to continue stinking up Superior, Wisconsin with excess Sulfur Dioxide.  Today, comments were due at the USEPA, opposing (or supporting) the Agency's approval of Wisconsin's permit, called a site specific revision, to allow the refinery its nearly 5,000 ton per year exemption.

Crucial to Murphy's argument for it is the high cost of using a low-sulfur fuel.  But unlike the rules in play in labor negotiations or bankruptcy proceedings, a company with a pollution problem can plead poverty to a state or federal environmental agency and there is no requirement for discovery of the underlying information.

What Murphy Oil told the state of Wisconsin was that its cost for switching to a cleaner fuel than the high sulfur oil it presently burns would prohibitively high--Wisconsin accepts Murphy's claim that this switch would increase the refinery cost by more than 10%.  USEPA, in its rationale for approving Wisconsin's action, accepted that argument.

But here's what Murphy was telling its stockholders at the same time!

Murphy Oil's 1998 annual report does not plead poverty.  In fact Murphy tells its investors that during 1998 they were able to process even bigger amounts than usual of high-sulfur raw material at their Superior refinery:
"Taking advantage of a weak market for heavy sour crude, Superior process over 9,000 barrels a day of heavy Canadian crude, an increase of 25% over the average for recent years.  As a result, 1998 was a record year for asphalt sales,..."
And what about the cost basis for comparing the increase in cost?  True, if we accept Murphy Oil's word for fuel cost comparisons and accept the fact that this multi-billion dollar company can't bear more than a 10% cost increase to meet state and federal laws, we probably see the logic of accepting Wisconsin's argument.

"We're being told that its too expensive for this multi-billion dollar company with assets from cancer alley to the North Sea to add an additional $500,000.00 to its operating cost.  Instead, we protect their profits by giving them permission to use the clean air of Lake Superior's airshed as a dump."

If we go to Murphy Oil's annual report instead, there's a different story.  The annual report claims only one cost figure-a total per barrel figure of $3.32/barrel.  This is an average for all US refinering operations.  Crude as the heavy sour stuff they've been sliding down Superior's throats, but it's the only financial figure provided publicly by the company.

Do the math:  If, instead of fuel cost alone, the total cost of refining is considered-1998 average per barrel cost figures show Murphy Oil's cost at $39,984,552.00-even the $1.2 Million dollar cost claimed for switching to low sulfur fuel oil is a small increase in cost, less than 3%, and not the more than 20% claimed.

USEPA is expected to take Wisconsin's lead and grant the revision, okaying more dirty air for Superior, Wisconsin.  But while the air is dirty, the facts are clear; the people of Wisconsin and the United States have been doing the math blindfolded.  And that's why we're being told that its too expensive for this multi-billion dollar company with assets from cancer alley to the North Sea to add an additional $500,000.00 to its operating cost.  Protecting our clean air is too expensive.  So instead, we protect their profits by giving them permission to use the clean air of Lake Superior's airshed as a dump.

For more details or additional information, contact Bob Olsgard, Coordinator,
Lake Superior Alliance at PO Box 472, Spooner, WI 54801 or call 715/635-8171

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