Category Archives: Valero Energy Corporation

California attorney general subpoenas oil refiners

Repost from SFGate
[Editor:  See also coverage in Bloomberg, Reuters, Wall Street Journal and Los Angeles Times.  – RS]

California attorney general subpoenas refiners on gas prices

Associated Press, Updated 2:57 pm, Friday, July 1, 2016

The California attorney general has issued subpoenas to several oil refiners to learn how they set gasoline prices, which are consistently higher in California than in most other states.

Chevron Corp., Exxon Mobil Corp., Valero Energy Corp. and Tesoro Corp. confirmed on Thursday that they have received subpoenas in recent weeks.

The attorney general is making a sweeping request for information about gasoline supplies, pricing, and maintenance shutdowns that can temporarily create shortages and increase prices, according to people familiar with the investigation. The people spoke on condition of anonymity because they were not authorized to discuss details of the subpoenas.

The requests came from Attorney General Kamala Harris, a Democrat who is running for the U.S. Senate. Kristin Ford, a spokeswoman for Harris, declined to comment on whether her office was investigating.

Chevron spokesman Braden Reddall said the company received a subpoena from the attorney general’s office and would cooperate with the investigation.

Valero received a subpoena “and we will respond accordingly,” said spokeswoman Lillian Riojas.

Spokesmen for Exxon and Tesoro also confirmed the requests for information. None of the companies would discuss the matter further.

California perennially has among the nation’s highest prices for gasoline. This week, the average for a gallon of regular was $2.90 in the state compared with the national average of $2.29, according to the AAA auto club.

Some consumer advocates have charged that refiners drive prices higher by tactics such as frequent or overly long plant shutdowns.
Refineries are routinely taken offline for maintenance, and there have been longer-lasting outages after disasters such as the explosion in February 2015 at an Exxon refinery in Torrance, near Los Angeles.

Gordon Schremp, senior fuels specialist with the California Energy Commission, said 2015 saw an “extraordinary price spike in magnitude and duration in California,” which a commission advisory committee has been investigating.

“We are aware that they were doing this,” Schremp said of the attorney general’s investigation, “because off and on they’ve talked to us about what was going on with the 2015 market, important factors that can cause spikes in the markets.”

Industry officials blame high prices on California’s stricter clean-air requirements, which they say add costs and make it more difficult to import gasoline from other states when there is a price spike.
Rebecca Adler, a spokeswoman for the American Fuel & Petrochemical Manufacturers, called the allegations in the subpoenas baseless.

“We are confident that nothing will come of this,” she said.

The group Consumer Watchdog has repeatedly called on Harris to investigate oil companies over California gas prices and welcomed news of the investigation.

“It’s great that we have a law enforcement official asking questions about both supplying the market and equitable pricing within the market,” said the group’s president, Jamie Court.

MARILYN BARDET: Valero delay tactic – unnecessary interference in local politics

Guest Editorial by Marilyn Bardet, March 16, 2016

Valero delay tactic – unnecessary interference in local politics

Marilyn Bardet
Marilyn Bardet

Last night, March 15th, the first hearing of the Benicia City Council was held on Valero’s appeal of the unanimous vote of the planning commission to deny certification of the final EIR and the proposed Crude By Rail Project, a permit for which would allow construction of a rail terminal on Valero property that would serve to off-load two 50-car trains each day loaded with domestic shale oil and/or Canadian tar sands.

After the staff gave its usual synopsis of Valero’s proposal, the planning commission’s chair, Don Dean, gave an excellent overview of the commission’s work over three years of public review, summarizing the arduous process, first begun in 2013, when the public and commissioners questioned City staff’s recommendation to adopt a grossly flawed Initial Study /Mitigated Negative Declaration. The commission’s inquiry continued following the drafting of a full EIR in 2014, that was then followed by review of a Revised EIR in 2015 — all of which entailed long hours of public hearings and study of volumes of written comment letters from Benicia residents and comments and testimony provided by public agencies, environmental organizations and government representatives. (See benindy.wpengine.com/project-review/ for links to the public record.)

After Don Dean’s presentation, it was Valero’s turn to present their appeal. In all previous testimony, and in their official letter of appeal, which had been submitted to the City in the wake of the final planning commission hearing in February, Valero has asserted that under federal preemption, requirements of the California Environmental Quality Act (CEQA) would be superseded, hence that any impact evaluations or determinations regarding mitigations directly or indirectly involving rail would be considered irrelevant and unenforceable. In their appeal letter, Valero went so far as to describe the commission’s decisions for denial as representing an “abuse of discretionary powers”, insisting that commissioners had virtually ignored the full authority of federal preemption.

Thus, it was to be expected that Valero’s Don Cuffel would repeat “the Valero basics” about why the Project would be safe and economically beneficial, while pointing to what Valero considers the various errors of “the opposition”, including those representing opposing legal views presented in the course of public hearings.

But the twist came when attorney John Flynn took the podium and surprised the council, city staff and the public by announcing that Valero was now recommending “a delay” in the appeal process they’d initiated, to allow time for them to petition the federal Surface Transportation Board (STB) for the agency’s perspective on the scope of federal preemption law governing rail operations. They admitted the delay could take at least three months.

Under the dubious premise that delaying their appeal would benefit everybody, Valero argued that getting an opinion from the STB would “help” the City make the correct decision with regard to the limits of their jurisdictional authority imposed by preemption.

But what kind of ‘benefit’ would delaying the appeal process really represent, given that Valero claims that preemption essentially neuters our city council’s authority and obligation under CEQA to protect the health and safety of residents, and thus to uphold most important goals and policies of the Benicia General Plan?

Council members Mark Hughes, Christina Strawbridge, Alan Schwartzman and Tom Campbell, and Mayor Patterson, each questioned why Valero had not petitioned the STB previously, when either the Draft EIR or Revised EIR were being developed. Valero didn’t seem to have an answer.

But “politics” are in the air, and Valero Energy Corp, headquartered in San Antonio TX, is now gambling politically, apparently seeking to produce what could be considered a “pre-trial” test of their own legal opinion on preemption right at the time of our local elections. Interference in local politics in order to push permitting of their dangerous Crude By Rail Project is not acceptable and must be challenged!

Make no mistake: Valero hopes to bank on setting a precedent, right here in Benicia, that would affect municipalities of every size and stripe across California and the US seeking to protect their communities from the risks of dangerous oil trains plowing through their urban cores and rural landscapes.

Valero’s “recommendation for delay” is a bald political tactic:
• Delay is NOT necessary for the City Council to reach an informed decision on the Crude-By-Rail Project;
• Delay does NOT serve City staff or the public;
• Delay ONLY serves the financial and broad political interests of Valero Energy Corporation.

Please come to the April 4th council hearing to voice your concern:
• To support the authority and requirements of CEQA — for the public’s right to full disclosure of impacts, for enforceable mitigations and feasible project alternatives;
• To support our planning commission’s consensus judgment resulting in a unanimous vote to deny certification of the Final EIR and deny the project permit;
• To support the authority of our City to protect our community’s health and safety and uphold the Benicia General Plan;
• To deny Valero’s appeal and audacious corporate attempt to interfere in local politics for their own gain.

— Marilyn Bardet, Benicia

“Valero Oil Trains” – to the tune of “Yellow Rose of Texas”

Here’s a great new song, lyrics by Nancy Schimmel and Bonnie Lockhart of Occupella.  For more movement songs about oil trains, see our Arts Page.

Occupella LogoValero Oil Trains

Tune: Yellow Rose of Texas
Words: Nancy Schimmel and Bonnie Lockhart
Download printable version

Valero Oil of Texas
Is not the oil for me,
They want to ship explosive crude
But the people disagree
‘Cause the tank cars are not safe enough
For the North Dakota crude
And if a few tip over,
You know we will be screwed.

They plan to send a hundred cars
Each and every day
To their big refinery
In Benicia by the Bay,
This crude makes more pollution
Than we already get
They think they can roll over us
But they ain’t seen nothin’ yet.

Valero Oil of Texas
It’s time to get a clue
That fracked-out oil’s a menace
Besides, there’s CO2,
So in every city on the route
And every farm and town
Let’s all stand up and holler
“Leave the oil in the ground!”

VALLEJO TIMES-HERALD LETTER: Valero is NOT good neighbor!

Repost from the Vallejo Times-Herald

Valero is NOT a good neighbor!

By Rebekah Ramos, September 25, 2015

Valero’s self-proclaimed “Good Neighbor” status is laughable when you begin to peel back the onion and remove the layers of misinformation (or missing information) and reveal the same flavor of corporate propaganda and fearmongering that is used to hold small communities hostage.

There are hidden costs to having Valero as a neighbor that you may not be aware of.

Valero says the City of Benicia is losing more than $360K per year in revenue because of delays in approving their crude by rail project, which could get us 4 new police officers.

Valero DOESN’T say…

    • CEQA (California Environmental Quality Act) is a law that requires due diligence to properly evaluate environmental impacts and most importantly, inform the public of those impacts. City staff initially attempted to push this project through, under the radar, and without LITTLE public notification – skirting the law. Had it not been for a group of alert citizens bringing this to the public’s attention Valero would have gotten away with implementing a project that would have enormous ramifications to our health, safety, and economic viability, not only in our community, but every community along the rails.
    • Our personal safety is NOT at risk because we are short on police officers, it’s at risk because transporting highly volatile crude oil by rail is extremely risky business. More than 17 major oil train accidents have occurred in the last 24 months resulting in explosions, spills, and derailments.

Valero says they contribute 25% to Benicia’s general fund.

Valero DOESN’T say…

  • That number is actually 20% AND it doesn’t reflect the millions that Valero has taken away from the city’s coffers in recent years.
  • The City of Benicia was forced to pay Valero $2.3 million because Valero filed an appeal for a reduction in its property value from $1.02 billion to $230 million and $964 million to $100 million in 2012 and 2013 respectively despite climbing profits and gas prices since 2010. Benicia loses $2.3 million AND any on-going revenue generated from Valero’s property taxes. How many police officers do you think $2.3 million get us?

Valero says the crude by rail project will reduce air emissions and decrease greenhouse gases. In addition, they say they are entitled to $57million in emission reduction credits because of improvements made to the refinery.

Valero DOESN’T say…

  • The recirculated EIR for their crude by rail project specifically states that there will be significant increases in air emissions and greenhouse gases.
  • Valero has received dozens of notices of emissions violations nearly every single month of 2014 and 2015 including a violation for Benzene.
  • Valero has failed to install any publically accessible emissions monitoring equipment despite their pledge to do so since 2008.
  • Emission reduction credits would allow Valero to increase their emissions for new projects, sell or trade their credits to other polluters. Because of Cap and Trade legislation, big polluters in our own backyards get to pollute even more.
  • According to the EPA, Valero is the biggest polluter in Solano County, contributing 82% of all toxic releases in 2013. Data for 2014 and 15 is not available.

Valero is desperate to turn a profit and will use whatever means is necessary – squeeze money from the city coffers, pollute our environment, and put our lives at risk – to satisfy the short-term interests of their shareholders. They even threaten to lay people off or sell the refinery if the city doesn’t comply.

We can’t let one business keep our community in such an economically vulnerable situation. The City of Benicia has adopted a Climate Action Plan, but can’t seem to address THE REAL CLIMATE ELEPHANT IN THE ROOM, which is Valero. It’s time that serious action be taken to seek out and invite other, more sustainable industries to our city because Valero is NOT a Good Neighbor!