Exxonmobil has reportedly been "in talks" with council leaders over compensation for residents living near Mossmoran in Fife following days of "unplanned flaring" earlier this year.
The incident at Easter time led to more than 600 people complaining to The Scottish Enviroment Protection Agency (SEPA), which was one of the agency's highest number of complaints for any single event.
According to the BBC, over 155,000 people live in the area that Mossmorran Action Group say was affected by the ethylene plant's unplanned flaring.
Local residents living nearby said that the noise and brightness was keeping them awake at night, while others expressed fears over the environmental impact.
The firm blamed the flaring on a fault in the section of cable but there have since been calls for the Fife plant, which is near Cowdenbeath, to be shut down.
Speaking to the BBC, David Ross, Fife Council co-leader, said: "We raised the possibility of compensation with Exxon when we met them.
"Their response was that they did not rule this out in principle.
"It is something we will be following up on again in due course."
However a spokesperson for Exxonmobil said that while they met with council bosses, they have not received any "formal requests for monetary compensation from members of the public".
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