Superior refinery reaches $1M settlement, will pay residents who evacuated

DULUTH – Thousands of Superior residents who were forced to evacuate during the 2018 oil refinery explosion and fire may soon be eligible for $150 payments as part of a class-action lawsuit settlement.

The $1 million settlement was reached last month in a federal suit brought by three residents who alleged economic losses and other damages due to the evacuation.

The Superior Refining Company — then owned by Husky Energy and now by Cenovus Energy — will admit no wrongdoing as part of the settlement.

Although total damages due to the evacuation were estimated at nearly $10 million, the plaintiffs' lawyers wrote the settlement is "eminently reasonable" since prolonged litigation could delay or deny any future award.

The amount of money set aside solely for paying claims — $881,000 — will not cover all those who are eligible to receive a payment, roughly 20,000 people.

U.S. District Court Judge William Conley will need to approve the settlement agreement before it takes effect. The next hearing is scheduled for July 23.

A worn valve is thought to be the cause of an explosion that punctured an asphalt tank and caused a daylong fire that sent thick black smoke into the air on April 26, 2018. The fire's proximity to a tank of hydrogen fluoride was the main motivation behind the mass evacuation, as the chemical can spread quickly and sicken or kill those who are exposed to it.

The evacuation order was lifted the next day.

Adults who lived in the evacuation zone at the time of the fire will be eligible to file a claim, which requires only basic information. Payments will be limited to $300 per household. The three plaintiffs in the case will receive $2,000 each.

If approved, a website and mailing address will be established for those looking to receive settlement payments. Notices will be mailed to about 15,000 households, and the settlement will be advertised locally and online.

Brooks Johnson • 218-491-6496