Executives will spend approximately $5.2 million on system overhauls
A settlement announced between the United States and Chevron Puerto Rico LLC resolves Resource Conservation Recovery Act (RCRA) violations at approximately 100 of Chevron’s underground storage tank facilities in Puerto Rico.
Under the terms of the settlement, Chevron has agreed to spend approximately $5.2 million to improve its leak detection methods and operations at these Chevron-owned Texaco service stations and will pay a $600,000 penalty.
Among the violations alleged in the complaint filed by the U.S. against Chevron were failure to: provide release detection for tanks and piping, provide adequate overfill protection equipment, perform annual tests of automatic line leak detector systems and maintain adequate records of release detection for tanks and piping.
Under the settlement, Chevron will install fully automated Veeder-Root leak detection systems on underground storage tanks at all of its Puerto Rico facilities by March 31, 2013, and will continue operating these systems at its facilities for a minimum of five years.
Chevron estimates that the automated systems will cost approximately $1.8 million. In addition, Chevron will provide quarterly reports to Environmental Protection Agency (EPA) regarding its operation of these systems, and will be required to provide information regarding Chevron’s operation of the systems upon EPA’s request.
Chevron has further agreed to implement two supplemental environmental projects that will benefit the affected communities. The first requires Chevron to install a centralized monitoring system at approximately 155 Chevron-owned Texaco service stations containing underground storage tanks by March 31, 2013. This monitoring system will contain audible and visible alarms that will alert station personnel of leaks and other potentially dangerous events.
The second requires Chevron to install liquid sensors under dispenser pans for all of its facilities by March 31, 2013, and to also connect these sensors to a centralized monitoring system. Both supplemental environmental projects require regular reporting by Chevron to EPA. Combined, the two projects will cost Chevron approximately $3.4 million.