NGL Resolves Matter with U.S. EPA
September 27 2018 - 12:56PM
Business Wire
As previously disclosed, on July 19, 2018, NGL Energy Partners
LP (NYSE: NGL) (“NGL”, “our”, “we” or the “Partnership”) and the
U.S. Environmental Protection Agency (“EPA”) reached an agreement
in principle regarding the settlement of a lawsuit brought by the
EPA against one of NGL’s subsidiaries, NGL Crude Logistics, LLC
(“NGL Crude”) and another company, Western Dubuque Biodiesel, LLC
(“WDB”). Today, NGL announces that it has finalized the settlement,
memorialized in a Consent Decree, which remains subject to final
approval by the Court. NGL believes that the terms of the
settlement protect NGL’s business interests, and once approved, the
Consent Decree will end more than four years of investigation and
litigation regarding the conduct of NGL Crude’s predecessor,
Gavilon, LLC (“Gavilon”).
The lawsuit was initially filed in October 2016 and related to
alleged civil violations of the Clean Air Act’s renewable fuel
standard regulations allegedly committed by Gavilon and WDB. The
alleged violations occurred during 2011 at a time when NGL did not
own Gavilon and when Gavilon was under different management. NGL
purchased Gavilon from Gavilon Energy Intermediate, LLC (“Gavilon
Intermediate”) in December 2013, some two years after the alleged
conduct and at a time when Gavilon Intermediate was owned by
Ospraie Management, LLC, General Atlantic LLC and Soros Fund
Management LLC. NGL was not involved in any way in the alleged
violations.
In determining to settle the EPA action under the terms of the
Consent Decree, NGL considered, among other factors, the ongoing
expense and operational impacts to NGL of continuing to defend the
lawsuit as well as the uncertainty associated with the outcomes of
litigation. NGL believes that the Consent Decree is in NGL’s best
interest, as it will end a long and expensive regulatory dispute;
prevents the continued expenditure of legal costs; and works to
protect the best interest of NGL’s investors, and its employees and
their families.
This press release includes “forward-looking statements.”
All statements other than statements of historical facts included
or incorporated herein may constitute forward-looking statements.
Actual results could vary significantly from those expressed or
implied in such statements and are subject to a number of risks and
uncertainties. While NGL believes its expectations as reflected in
the forward-looking statements are reasonable, NGL can give no
assurance that such expectations will prove to be correct. The
forward-looking statements involve risks and uncertainties that
affect operations, financial performance, and other factors as
discussed in filings with the Securities and Exchange Commission.
Other factors that could impact any forward-looking statements are
those risks described in NGL’s Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, and other public filings. You are
urged to carefully review and consider the cautionary statements
and other disclosures made in those filings, specifically those
under the heading “Risk Factors”. NGL undertakes no obligation to
publicly update or revise any forward-looking statements except as
required by law.
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. NGL
owns and operates a vertically integrated energy business with four
primary businesses: water solutions, crude oil logistics, NGL
logistics and refined products/renewables. For further information,
visit the Partnership's website at www.nglenergypartners.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180927005736/en/
NGL Energy Partners LPTrey Karlovich, 918-481-1119Executive Vice
President, Chief Financial Officertrey.karlovich@nglep.comorKurston
P. McMurray, 918-481-1119Executive Vice President, General
Counselkurston.mcmurray@nglep.com
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