Top bar
About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 106
Valero Energy Corp.
Valero Energy is a Fortune 500 company based in San Antonio, with approximately 22,000 employees and annual revenues exceeding $90 billion. The company owns and operates 18 refineries throughout the United States, Canada and the Caribbean with a combined throughput capacity of approximately 3.3 million barrels per day, making it the largest refiner in North America. Valero is also one of the nation’s largest retail operators with approximately 5,800 retail and branded wholesale outlets in the United States, Canada and the Caribbean under various brand names including Valero, Diamond Shamrock, Shamrock, Ultramar, and Beacon.
Federal Contract $: $ 905.3m
Total Number of Instances: 28
Total Misconduct dollar amount: $ 283.5m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10-K
- Subsidiary List
- Contracting Information
- Website
Instances of Misconduct
1. Air and Water Pollution Violations at Delaware City Refinery
The Delaware Department of Natural Resources and Environmental Control fined Valero Energy subsidiary The Premcor Refining Group, Inc. more than $1.9 million for nearly 200 air and water pollution violations over the previous decade at the Delaware City refinery.... more»
2. January 2010 Air Quality Violations at Texas City Refinery
The Texas Commission on Environmental Quality (TCEQ) fined Valero Refining-Texas L.P. $186,400 for five air quality violations at its Texas City refinery which were discovered during a routine investigation conducted on January 13, 2010.... more»
3. Unauthorized Air Emissions in Texas
The Texas Commission on Environmental Quality (TCEQ) assessed a penalty of $181,200 against Valero Refining-Texas, L.P. for unauthorized emissions of sulfur dioxide, hydrogen sulfide, and nitrogen oxides on February 20, 2005.... more»
4. Hydrocarbon Flaring Violations at Delaware City Refinery
The Delaware Department of Natural Resources and Environmental Control (DNREC) assessed $86,250 in fines and costs on Valero Energy subsidiary The Premcor Refining Group, Inc. for violating state air pollution regulations at its Delaware City refinery. DNREC alleged hydrocarbon flaring violations occurred between October 2006 and December 2007 and in January and August 2008.... more»
5. OSHA Violations at Delaware City Refinery
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) fined Valero Energy Corp. $107,500 for workplace safety and health violations at its Delaware City oil refinery. OSHA cited Valero for four repeat violations and nine serious violations, including failure to conduct and document inspections and tests on the refinery’s equipment and failure to properly conduct a hazard analysis and maintain safety information for employees.... more»
6. Violations of the Clean Air Act
On June 16, 2005, the U.S. Department of Justice and the U.S. Environmental Protection Agency 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." Under a consent decree, Valero will pay a $5.5 million civil penalty, spend more than $5.5 million on "environmentally beneficial projects," and, together with Tesoro (purchaser of the former Valero Golden Eagle Refinery in Martinez, Calif.), spend more than $700 million to "install and implement innovative emission control technologies at their refineries."... more»
7. EPA Region V v. Total Petroleum, Inc. (Violations of the Clean Air Act and RCRA)
An enforcement action began in September 1997 in response to various alleged environmental violations at the Alma, Michigan refinery of Valero subsidiary Total Petroleum, Inc. The Environmental Protection Agency identified Clean Air Act violations relating to emissions monitoring, reporting and inspection and Resource Conservation and Recovery Act (RCRA) violations relating to the maintenance of wastewater ponds and hazardous waste storage and disposal. In April 2000, TPI settled the matter, and agreed to pay $9.9 million for specific environmental and economic development projects and $4 million in penalties. A Consent Decree reflecting the settlement was entered by the court on March 27, 2001.... more»
8. Incorrect Emission Reporting
"On August 21, 2002, Valero advised that three DAL batch reports submitted between August 17 and August 20, 2002, had incorrect aromatics values because of a laboratory software error. A settlement conference was held [with the California Environmental Protection Agency] on February 4, 2003, and the case has since been settled in principle for $10,000."... more»
9. Failure to Make Proper Notification of a Marine Vessel Import
"Valero self-reported [to the California Environmental Protection Agency] their failure to make proper notification of a marine vessel import of July 3, 2003, on the vessel O/S Philadelphia. One of the tanks into which the fuel was offloaded was designated a production tank, and a predictive model was in effect for that tank which the imported fuel did not meet, although it met all flat limits. The case was settled for $7,500 and was closed in June 2005."... more»
10. Record Keeping Deficiencies and Emissions Exceedances
In June 1999, the Texas Natural Resources Conservation Commission initiated proceedings against Valero's Texas City refinery alleging certain record keeping deficiencies and emissions exceedances, most of which occurred prior to Valero's acquisition of the refinery. The company ultimately agreed to pay a penalty of $174,455.... more»
11. EPA Region VIII vs. Ultramar Diamond Shamrock Corporation (Underground Storage Tank Violations)
In 2000, the EPA and state regulators inspected certain retail facilities [of Valero subsidiary Ultramar Diamond Shamrock Corporation] for compliance with federal and state rules and regulations at such facilities. On April 3, 2001, UDS received an administrative complaint from the EPA seeking penalties in connection with alleged violations and non-compliance issues arising primarily prior to October 1999. This matter was settled in November 2001 upon payment of $126,764 in penalties."... more»
12. Air Emission Violations
On April 18, 2005, Valero Refining Company - New Jersey and the New Jersey Department of Environmental Protection signed an Administrative Consent Order settling air emission violations at its Paulsboro refinery that occurred between 2001 and 2004. Under the agreement, Valero agreed to pay $793,000 in fines and install emission controls that will significantly reduce emissions of volatile organic compounds, oxides of nitrogen and sulfur dioxide. To that end, Valero will install a $3.5 million, state-of-the-art air pollution control at the Paulsboro refinery waste water treatment system.... more»
13. Ground Water Pollution
On January 5, 2006, the New Jersey Department of Environmental Protection announced an agreement with Valero Refining Company "to preserve four properties in southern New Jersey totaling 615 acres as compensation to the public for ground water pollution at its oil refinery in Greenwich...Valero Refining Company will fund the acquisition of four properties located in Winslow Township, Camden County (359.5 acres); East Greenwich Township, Gloucester County (60.5 acres); Pennsville Township, Salem County (130 acres); and, Lawrence Township, Cumberland County (65 acres). Valero also will pay the Department's assessment costs."... more»
14. Texas Air Quality Violations
On August 23, 2006, the Texas Commission on Environmental Quality approved a $700,000 penalty against Valero Refining-Texas L.P. for air violations. The order resulted from 16 violations found during investigations in March and April of 2006. The violations included exceeding emissions limits, failure to properly report emission events, and failure to prevent nuisance conditions.... more»
15. Failure to Install Emission Monitors
On November 25, 1998, the Texas Natural Resource Conservation Commission initiated an enforcement action against Valero's Corpus Christi Refinery alleging violations of state and federal air regulations due to nitrous oxide emission monitors not being installed in two utility boiler stacks and certain recordkeeping deficiencies. On February 18, 1999 the TNRCC issued a revised Agreed Order for $111,000 in penalties.... more»
16. EPA Region VI v. Diamond Shamrock Refining Company (Record-Keeping and Reporting Violations)
Valero subsidiary Diamond Shamrock Refining Company settled with the Environmental Protection Agency allegations of various record-keeping, reporting, operating and permitting violations at the McKee Refinery and Three Rivers Refinery. Pursuant to a consent decree entered by the federal district court on September 20, 2001, Diamond Shamrock paid a penalty of $1.2 million and funded a supplemental environmental project in the amount of $625,000.... more»
17. Wrongful Death (John Ferguson)
An accident in 2005 at Valero Energy Corp.'s Delaware City refinery killed John J. Ferguson and John A. Lattanzi. Their families filed federal wrongful death lawsuits in February 2006 claiming Ferguson and Lattanzi suffocated inside a refinery unit filled with nitrogen gas due to Valero’s negligence and/or recklessness in running the refinery and failure to adequately protect workers. In July 2010, it was reported that Valero settled the lawsuit for an undisclosed amount. See related Valero Energy Corp. instance, “Wrongful Death (John Lattanzi).”... more»
18. Air and Water Pollution and Hazardous Waste Violations (Delaware City, DE)
Valero Energy subsidiary The Premcor Refining Group, Inc., which owns the Delaware City Refinery, agreed to pay more than $6 million in fines, system improvements and environmental projects to settle allegations of water and air pollution and hazardous waste violations. The Delaware Department of Natural Resources and Environmental Control alleged several instances of noncompliance occurred at the refinery between May 2004 and September 2006. Premcor will pay administrative penalties of $425,000 for the alleged air pollution violations and $30,000 for the alleged hazardous waste violations; spend approximately $4.5 million on improvements and upgrades to its equipment, and spend an estimated $1.3 million on environmental improvement projects. Valero Energy acquired Premcor and its subsidiaries in September 2005.... more»
19. Texas City Emissions
The Texas Commission on Environmental Quality fined Valero Refining-Texas L.P. $119,149 for 12 different air emissions violations that occurred at its Texas City plant in 2006. The violations involved the release of sulfur dioxide or volatile organic compounds into the atmosphere.... more»
20. Upgrading Pollution Controls (Clean Air Act Violations)
Valero Energy Corp. agreed to pay a $4.25 million civil penalty and spend $232 million to upgrade pollution controls at its Port Arthur, Texas; Lima, Ohio and Memphis, Tennessee refineries. The new controls will reduce nitrogen oxide, sulfur dioxide and other air pollutants in compliance with the Clean Air Act. The settlement also requires Valero Energy to spend an additional $1.6 million on various environmental health projects in the three communities. The refineries were previously owned by the Premcor Refining Group, Inc., which Valero Energy acquired in September 2005.... more»
21. TCEQ Fine for May – Sept. 2008 Emissions Event
The Texas Commission on Environmental Quality (TCEQ) fined Valero Refining-Texas LP $591,798 for air violations noted in a May 27, 2008 – September 3, 2008 emissions event. Of that penalty amount, $295,899 will be contributed to a Supplemental Environmental Project to the Texas PTA Clean School Bus program.... more»
22. Air Quality Violations at Benicia Refinery
The Bay Area Air Quality Management District (BAAQMD) reached a settlement with Valero Refining Co. to pay a $130,500 civil penalty to resolve air quality violations at its refinery in Benicia, California. The settlement covers 23 Notices of Violation that BAAQMD issued against Valero for incidents that occurred at the facility in 2008 and 2009. All violations were corrected promptly. One violation involved a public nuisance from brief offsite odors, while the remainder involved no offsite impacts to the neighboring community. Of the remaining 22 violations, six were administrative violations and fifteen involved brief violations of emissions limits. Only one violation, involving leakage of gas turbine exhaust, lasted for more than a week. None of the violations posed a significant threat to air quality or public health.... more»
23. Nationwide MTBE Groundwater Contamination Litigation
A dozen oil companies, including BP America Inc., Chevron Corp., Shell Oil Co. and Valero Energy Corp., agreed to pay over $423 million to settle litigation with public water providers in 17 states over groundwater contamination from the gasoline additive methyl tertiary butyl ether (MTBE). The companies also agreed to pay cleanup costs that arise in the next 30 years. Defendant ExxonMobil refused to settle and faces numerous MTBE trials, scheduled to begin in September 2008.... more»
24. Pollution Violations (Greenwich Township Refinery)
The New Jersey Department of Environmental Protection reached a settlement with Valero over dozens of air pollution violations at Valero’s refinery in Greenwich Township during 2005, 2006 and early 2007. The DEP cited Valero for exceeding overall emissions limits, violating stack-emission testing requirements, exceeding emission standards for pollutants during stack tests, failing to maintain records for monitoring of an air scrubber, and deviating from various other leak detection and repair requirements. Valero will pay a penalty of $905,796 and fund special community projects worth $977,808 that include emergency alert systems and improvements to local schools’ heating and ventilation systems.... more»
25. Safety Violations (Port Arthur, TX)
The U.S. Department of Labor's Occupational Safety and Health Administration (OSHA) cited Valero Energy Corp. for 13 alleged serious violations, two repeat violations and one other-than-serious violation at Valero’s Port Arthur, Texas petroleum refinery and proposed penalties totaling $101,750. According to an OSHA news release, “Serious violations include failing to: implement accurate process safety information, provide employees with accurate operating procedures, have an adequate system in place to advance recommendations from process hazard analysis and correct equipment deficiencies. A serious violation is one with potential to cause death or serious physical harm to employees when the employer knew or should have known of the hazard. The repeat violations address the company's failure to implement inspection and testing procedures that follow OSHA's standards and regulations. Repeat violations are issued when an employer previously has been cited for the same, or a substantially similar, violation that has become a final order.”... more»
26. Corpus Christi Oil Spill
Valero Refining-Texas, L.P. agreed to resolve alleged violations of the Clean Water Act for a spill of 3,400 barrels (142,800 gallons) of oil from its Corpus Christ, Texas refinery into the Corpus Christi Ship Channel on June 1, 2006. Valero will pay a $1.65 million civil penalty and construct a boat ramp that will aid emergency response efforts in the spill area, a project that will cost approximately $300,000. The penalty will be deposited in the federal Oil Spill Liability Trust Fund, which is used to pay for federal cleanups of oil spills.... more»
27. CSB Investigation of Sunray, Texas Refinery Fire
A February 16, 2007 fire at the Valero McKee refinery in Sunray, Texas injured four workers and caused the total shutdown and evacuation of the refinery. In July 2008, the U.S. Chemical Safety and Hazard Investigation Board (CSB) released a final investigation report that concluded the accident “was likely caused by the freeze-related failure of high-pressure piping at a control station that had not been in service for approximately 15 years…Water in the propane accumulated in the low point formed by the control station and froze during cold weather prior to the incident, cracking an inlet pipe elbow. Ice sealing the failed pipe from the process melted as the air temperature rose on the day of the incident, releasing 4,500 pounds per minute of liquid propane, which ignited.” The report found that the refinery did not have an effective program to identify and address the risk of pipe failure due to freezing and the hazards posed by fire exposure to neighboring equipment. The CSB, an independent federal agency charged with investigating industrial chemical accidents, makes safety recommendations but does not issue citations or fines.... more»
28. Wrongful Death (John Lattanzi)
An accident in 2005 at Valero Energy Corp.'s Delaware City refinery killed John J. Ferguson and John A. Lattanzi. Their families filed federal wrongful death lawsuits in February 2006 claiming Ferguson and Lattanzi suffocated inside a refinery unit filled with nitrogen gas due to Valero’s negligence and/or recklessness in running the refinery and failure to adequately protect workers. In October 2008, Valero settled the Lattanzi lawsuit pursuant to an undisclosed agreement. See related Valero Energy Corp. instance, “Wrongful Death (John Ferguson).”... more»
Quick Search
= link