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BP settles with government, will pay $8M fine, spend $400M to cut pollution at Ind. refinery

BP Products North America Inc.

has agreed to install $400 million in new air pollution controls at its northwestern Indiana oil refinery and pay an $8 million fine under a deal announced Wednesday with the government and environmental groups.The oil giant agreed to the fine to settle allegations of air quality permit violations since 2001, according to a consent decree filed in federal court in Hammond. The deal also resolves objections by the U.S. Environmental Protection Agency to an air permit issued by Indiana.Under the agreement, environmental groups including the Natural Resources Defense Council and the Sierra Club agreed to drop their own challenges to the permit.The agreement, subject to a 30-day public comment period and final court approval, is designed to reduce harmful air pollution by about 4,000 tons annually at BP's sprawling refinery in Whiting, about 20 miles southeast of Chicago.The refinery is undergoing a $3.8 billion expansion that is due to open next year. BP has...

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