Tesoro Companies, Inc. Settlement, 2017
Tesoro Companies, Inc. Case Settles for $75,000
In December 2017, Andeavor (formerly Tesoro) agreed to pay $75,000 in penalties for supplying gasoline in violation of California reformulated gasoline regulations. In August 2013, for a period of 4 days, what was then known as Tesoro supplied approximately 1,680,000 gallons of non-compliant gasoline that was mixed with Arizona Cleaner Burning Gasoline (AZCBG) for retail delivery. Prior to a scheduled pipeline transfer of California Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB) to the East Hynes terminal, a flush was performed in order to wash out all line segments in the pipeline of residual AZCBG. However, one of the segments was unaccounted for, resulting in its residual AZCBG mixing with the scheduled CARBOB transfer. The violation was discovered and self-disclosed by Tesoro to CARB Enforcement staff. Upon discovery, Tesoro stopped loading of the non-compliant fuel and took steps necessary to bring the product back into compliance.
The civil penalty was paid into two funds, with $37,500 to the California Air Pollution Control Fund and the other $37,500 to the South Coast Air Quality Management District to fund a Supplemental Environmental Project that installs air filtration systems in schools.