Sunoco 2010 Annual Report Download - page 30

•National Ambient Air Quality Standards: National Ambient Air Quality Standards for ozone
promulgated by the EPA have resulted in identification of non-attainment areas throughout the country,
including Texas, Pennsylvania, Ohio, New Jersey and West Virginia, where we operate facilities.
Areas designated as being in nonattainment with the 1997 eight-hour ozone standard of 0.08 parts per
million, or ppm, are required to meet ozone standards by specified dates, in accordance with a
particular area’s designated level of nonattainment. For example, areas designated as being in
“moderate” nonattainment with the standard, such as Philadelphia, were required to meet the ozone
requirements by June 15, 2010 whereas areas designated as being “severe” nonattainment with the
standard, such as Houston, have until June 15, 2019 to meet the requirements. Because the Philadelphia
area failed to meet the applicable standard by June 15, 2010, the State of New Jersey requested a
one-year attainment date extension for the Philadelphia area, until June 15, 2011, and the EPA
approved the request for an extension on January 21, 2011. Barring any further extensions of time, the
Philadelphia area has only a limited period of time to meet the June 15, 2011 deadline and it is possible
that more stringent offset requirements, regulatory programs or other actions with adverse
consequences to our operations could be taken by the state of New Jersey in order for the area to satisfy
the deadline. Notwithstanding the obligation of New Jersey, Texas and other states to comply with the
1997 eight-hour ozone standard, in March 2008, the EPA revised this standard downward, from 0.08
ppm to 0.075 ppm, and, in January 2010, further proposed to make the average eight-hour ozone
standard even more stringent by reducing the level from 0.075 ppm to between 0.060 and 0.070 ppm.
The EPA’s final rule on promulgation of a more stringent standard between 0.060 and 0.070 ppm, has
been delayed, and current plans are to issue a final rule by the end of July 2011. Because state actions
to designate geographic areas that are in nonattainment with the 0.075 ppm standard have been stayed
due to the EPA’s current consideration of the even more stringent 0.060 to 0.070 ppm standard, the
area designations set forth under the 1997 eight-hour ozone nonattainment standard of 0.08 ppm remain
in effect. Regulatory programs, when established to implement the EPA’s air quality standards, could
have an impact on us and our operations. While the potential financial impact cannot be reasonably
estimated until the EPA promulgates regulatory programs to attain the standards (whether the 0.075
ppm level or somewhere between 0.060 and 0.070 ppm), and the states, as necessary, develop and
implement revised State Implementation Plans to respond to the new regulations, it is possible that the
new regulations will result in increased costs to us, which costs could be material.
•Natural resource damages: Certain federal and state government regulators have sought compensation
from companies like us for natural resource damages as an adjunct to remediation programs. Because
we are involved in a number of remediation sites, a substantial increase in natural resource damage
claims at such remedial sites could result in substantially increased costs to us.
•Mine safety and health: The coal mining industry is subject to stringent safety and health standards.
Recent fatal mining accidents in West Virginia of another coal mining company have received national
attention and have led to responses at the state and national levels that have resulted in increased
scrutiny of coal mining operations, particularly underground mining operations. More stringent state
and federal mine safety laws and regulations have imposed new requirements and increased sanctions
for non-compliance. Further workplace accidents are likely to also result in more stringent enforcement
and possibly the passage of new laws and regulations.
•Inability to obtain and/or renew permits for our mining operations: Numerous governmental permits
and approvals are required for mining operations, and we can face delays, challenges to, and
difficulties in acquiring, maintaining or renewing necessary permits and approvals, including
environmental permits. The permitting rules, and the interpretations of these rules, are complex, change
frequently, and are often subject to discretionary interpretations by regulators, all of which may make
compliance more difficult and costly or impractical, and may possibly preclude the continuance of
ongoing mining operations or the development of future mining operations. Currently, significant
uncertainty exists regarding the obtaining of permits under the Clean Water Act for coal mining
operations in Appalachia due to various initiatives launched by the EPA regarding these permits. In
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