Chevron Agrees to Pay $2M in California Refinery Fire

Chevron Corp. agreed to pay $2 million in fines and restitution and pleaded no contest to six charges in a fire last summer at its refinery in the San Francisco Bay Area city of Richmond that sent thousands of residents to hospitals, many complaining of respiratory problems, reports The Associated Press.

The San Ramon-based oil giant entered the plea to charges filed by the California Attorney General’s Office and the Contra Costa District Attorney’s Office, including failing to correct deficiencies in equipment and failing to require the use of certain equipment to protect employees from potential harm.

Both Chevron and government investigations determined that corrosion in a pipe caused a leak that sparked the Aug. 6, 2012, fire, sending a plume of black smoke over nearby residential areas. The investigations found Chevron failed to replace the 1970s-era pipe despite numerous warnings from its own inspectors.

“This criminal case achieves our goals of holding Chevron accountable for their conduct, protecting the public, and ensuring a safer work environment at the refinery,” Contra Costa District Attorney Mark Peterson said in a statement.

In January, the company said in a report to county health officials that it had already paid about $10 million in connection to nearly 24,000 claims from residents, and in compensation to area hospitals and local government agencies in Richmond and in Contra Costa County.

Company officials said most of that $10 million went to hospitals for medical exams and treatment immediately following the incident.

Chevron also is still facing nearly $1 million in citations issued by Cal OSHA, state Department of Industrial Relations Director Christine Baker said in a statement. Chevron has appealed that fine.

As part of the agreement, Chevron will inspect all piping subject to the type of corrosion that caused the pipe at the Richmond refinery to fail and update its emergency response training program, according to prosecutors.

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