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 NGLs 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 NGLs business interests, and once approved, the Consent Decree will end more than four years of investigation and litigation regarding the conduct of NGL Crudes predecessor, Gavilon, LLC (Gavilon).
The lawsuit was initially filed in October 2016 and related to alleged civil violations of the Clean Air Acts 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 NGLs 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 NGLs 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 NGLs 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
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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.