Valero Petroleum Refinery Settlement

WASHINGTON, D.C. (June 16, 2005) -The U.S. Justice Department and the U.S. Environmental Protection Agency (EPA) today announced comprehensive Clean Air Act settlements with petroleum refinery Valero that are expected to reduce harmful air emissions by more than 20,000 tons per year from 14 refineries in six states.

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Geography: Fourteen refineries affected

Benicia, Calif.
Martinez, Calif. (Tesoro Golden Eagle)
Wilmington, Calif.
Denver, Colo.
Krotz Springs, La.
St. Charles Parish, La.
Paulsboro, N.J.
Ardmore, Okla.
Corpus Christi (East), Texas
Corpus Christi (West), Texas
Houston, Texas
Sunray, Texas
Texas City, Texas
Three Rivers, Texas

Industry Capacity:

More than 1.5 million barrels of oil per day

10 percent of industry capacity

Second largest refiner to settle under EPA's Petroleum Refinery Initiative

Emissions Reductions:

Nitrogen oxide (NOx) reduced by more than 4,000 tons per year

Sulphur dioxide (SO2) reduced by more than 16,000 tons per year

Particulate matter (PM) reduced by more than 526 tons per year

Injunctive Relief:

More than $700 million will be spent on injunctive relief through 2012

Guaranteed NOx and SO2 emission reductions at each refinery

Commitment to reduce the number and severity of major flaring events at all facilities

Commitment to implement enhanced procedures to reduce benzene emissions and volatile organic compound leaks from valves and other equipment at all facilities

Penalty: $5.5 million (includes $2.1 million to be paid to participating states)

Supplemental Environmental Projects: Valued at $5.5 million, including $3 million to be used for community-based environmental projects in each of the six states where Valero refineries are located.

State Partners: Colorado, Louisiana, New Jersey, Oklahoma and Texas

For additional information, contact:

Patrick W. Foley
Senior Environmental Engineer
U.S. Environmental Protection Agency (2242A)
1200 Pennsylvania Ave., N.W.
Washington, DC 20460-0001
(202) 564-7978

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