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Friday, February 16, 2001



Chevron to pay
penalties, upgrade
environmentally


By Janine Tully
Star-Bulletin

Chevron U.S.A. Inc. has agreed to pay penalties and to complete an environmental project totaling $800,000 for violating the federal Clean Air Act at three of its Hawaii facilities.

The complaint, which was filed in U.S. District Court in Hawaii yesterday, alleges that Chevron failed to install air pollution controls and limit emissions at its Hilo and Kahului gasoline terminals.

The lawsuit by the federal Environmental Protection Agency also alleges that the oil company failed to inspect and file reports on equipment leaks and wastewater systems at its Kapolei petroleum refinery.

Under the agreement, Chevron will pay a $650,000 penalty and spend at least $150,000 toward converting the loading racks on trucks from top loading to bottom loading at its Port Allen gasoline terminal on Kauai, which will significantly reduce air pollution emissions.

Company spokesman Albert Chee said Chevron will meet all of EPA's requirements.

"We will do what is necessary to make the record complete and comply with the agreement of the settlement," Chee said.

Chee said some violations stem from misinterpreting EPA regulations that require filing for a new permit every time there's a change in procedure or an upgrade in equipment.

Chevron had been making improvements on the Hilo and Kahului terminals to reduce emissions and for safety reasons, he said. It had converted to bottom-loading to fill the trucks with gasoline.

"Better technology for loading our gasoline trucks became available," Chee said. "Before, a driver would have to climb on top of the truck, spilling gasoline. With bottom-loading the gasoline is injected in the same hole it comes out."

Thomas Mintz, regional counsel for EPA, said Chevron came under compliance for most of the violations during the settlement process. But the Kapolei refinery still needs an inspection program to check for equipment leaks and file reports, Mintz said.



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