Petro-Diamond Inc. Settlement
Petro-Diamond Inc. Case Settles for $50,000
In September 2014, Petro Diamond paid $50,000 in penalties for supplying gasoline in violation of California reformulated gasoline regulations. In July 2013, Petro Diamond supplied more than 200,000 gallons of premium grade gasoline with a Reid Vapor Pressure (RVP) higher than the allowable cap limit of 5.99 psi from its Long Beach terminal. The RVP level of the gasoline supplied was 6.43 psi. The high RVP was the result of recycling condensate from Petro Diamond’s Vapor Recovery Unit (VRU). The VRU condensate is normally recycled into a regular grade CARBOB tank (higher throughput), and in this case was temporarily switched to the premium grade tank (lower throughput) to facilitate pipeline movement operations. The violation was discovered during routine sampling conducted by CARB Enforcement staff. Enforcement staff verified the violation by resampling and through a series of discussions with Petro Diamond terminal staff. Petro Diamond took steps to investigate, isolate and recertify the non-compliant fuel. Petro Diamond implemented corrective actions to minimize the potential for similar occurrences.