The Bullet:

USEPA issued a civil penalty of $142,664 and other costs to a Shell Oil Company refinery in Martinez, CA.  USEPA took action against the company after its inspections identified multiple violations of the hazardous waste regulations.  As part of the settlement reached the refinery must also spend $220,300 to make improvements to its facility to further reduce its potential to pollute the environment and it must provide $38,000 to the county to support its emergency response efforts.

Who:

• U.S. Environmental Protection Agency (USEPA), Pacific Southwest Region (Region 9).
• Shell Oil Products, a subsidiary of Shell Oil Company is the owner of a refinery in Martinez, CA.  The facility processes about 165,000 barrels of crude oil per day. It also makes asphalt, diesel, jet turbine fuel, petroleum coke, propane, residential fuel oils, and sulfur.

What:

USEPA has reached a settlement with Shell Oil Products over hazardous waste and risk management plan compliance at its crude oil refinery in Martinez, CA.  The settlement requires Shell Oil Products to take the following actions:

• Pay a $142,664 civil penalty.
• Under the terms of the settlement, Shell Oil will spend an estimated $220,300 to upgrade the area where heat exchanger equipment is cleaned to ensure that resulting hazardous materials are properly managed. Shell Oil will also develop and implement a plan for sampling stormwater to ensure the water is managed appropriately. Finally, Shell Oil will analyze materials generated from its laboratory activities to ensure that they are managed correctly.
• Shell Oil has also agreed to spend about $38,000 to provide the Contra Costa Health Services Hazardous Materials Programs with equipment to stop leaks from sulfur dioxide containers, personal protective equipment, and handheld particulate meters (including backup batteries and chargers), which are used to monitor air quality.

Where:

The Shell Martinez Refinery, located on Pacheco Boulevard about 2 miles east of downtown Martinez, CA and south of the Carquinez Strait.  It is located in Contra Costa County.

When:

• USEPA news release is dated June 4, 2018.
• USEPA inspected the refinery in November 2014, March 2015, and again in November 2016.

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Why:

Violations found during the inspections include:

• Failure to immediately notify the appropriate federal, state, and local emergency planning and response agencies immediately after an accidental release in December 2013.
• Failure to determine if waste generated at the refinery was hazardous.  Read: What is the hazardous waste determination?
• Failure to follow proper procedures for managing hazardous waste.
• Failure to comply with Spill Prevention, Control, and Countermeasure rule requirements, such as using proper containers for fuel storage.
• Failure to comply with Risk Management Plan Rule requirements, such as accurately reporting an accidental release worst-case scenario. When properly implemented, risk management plans and their associated program elements help prevent and control chemical releases at facilities that store large amounts of hazardous substances or flammable chemicals. These plans are also used by EPA and other emergency responders to assess chemical risks to nearby communities and prepare for emergency responses.

This action by USEPA and Shell Oil Products will prevent an estimated 64 tons of hazardous waste from being released to the environment every year and reduce the risk of diesel fuel spills to San Francisco Bay.

“Today’s order requires Shell Oil to make necessary enhancements to comply with federal laws and protect public health and our natural resources,” said EPA Pacific Southwest Regional Administrator Mike Stoker.

How:

California has its own authorized hazardous waste program administered by the Department of Toxic Substances Control (DTSC) within the California Environmental Protection Agency (Cal EPA).  In this case, however, the USEPA was the lead agency in conducting the inspection and assessing the penalties.  Though a state may have an authorized hazardous waste program, the Federal government may still exercise its authority within that state.

Conclusion:

Another example of how a big company, one with enough resources to be able to research the regulations and to comply with them, has failed to do so.  Don’t let your company make the same mistakes and pay similar fines.  My high quality Hazardous Waste Personnel Training, whether delivered Onsite or as a Webinar, will instruct you and your employees on what they need to know to comply with these regulations.  The cost of training is cheap compared to the cost of non-compliance.

More Information:

• Learn more about the terms of the settlement: https://www.epa.gov/ca/shell-martinez-refinery-martinez-ca-consent-agreement-and-final-order
• Learn more about EPA’s Office of Enforcement and Compliance Assurance: https://www.epa.gov/enforcement
• Learn more about EPA’s Pacific Southwest Region. Connect with us on Facebook and on Twitter.