Friday, September 26, 2008

Valero Refining Pay 2.0 Million in Clean Water Act Violation Fines

Valero agrees to pay nearly $2 million to settle environmental complaints

Wednesday, June 11, 2008

San Antonio Business Journal

Valero Refining Texas LP has reached a settlement with the Justice Department and Environmental Protection Agency to end allegations that the oil refiner violated the Clear Water Act two years ago.

The government alleged Valero spilled 3,400 barrels of oil into the Corpus Christi Ship Channel on June 1, 2006. The ship channel flows from Tule Lake into Corpus Christi Bay and ultimately the Gulf of Mexico. The channel is used heavily by barges and other commercial ships.

The EPA alleged that the oil spilled from a containment berm located on the edge of the ship channel at Valero's Corpus Christi Refinery West Plant. Valero has since removed the berm and the above-ground storage tank from the edge of the ship channel in order to prevent future spills.

Attorneys for Valero did not admit any wrongdoing in agreeing to the settlement, according to the consent decree.

Under the consent decree filed Tuesday in federal court in Corpus Christi, Valero has agreed to pay $1.65 million in civil penalties and invest in an additional environmental project that will cost the company $300,000. The penalty funds will be deposited in the government's Oil Spill Liability Trust Fund.

Valero also will design and construct a boat ramp that will aid emergency-response efforts in the vicinity of where the oil spill took place.

Valero Refining Texas is a wholly owned subsidiary of San Antonio-based Valero Energy Corp. (NYSE: VLO).

The consent decree filed with the court is subject to a 30-day public comment period and final court review. The Justice Department has posted a copy of the decree on its Web site (www.usdoj.gov/enrd/Consent_Decrees.html).

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