Friday, June 09, 2006

Benicia Pursues Refinery Review

By Corey Lyons
Contra Costa Newspapers
Jan. 22, 2004

BENICIA -- After a series of perplexing breakdowns and fires at the troubled Valero refinery, city officials are calling for an independent safety audit of the 35-year-old plant.

The city wants a third-party review of the fifth-largest refinery in California, and also plans to hire its own refinery adviser to serve as its "informed advocate" as the investigation unfolds.

Valero Energy Corp., which owns the Benicia refinery, also is concerned about the string of incidents last year, which alarmed residents and cost the Texas-based company millions of dollars in lost production.

In a special City Council meeting Tuesday night, company officials said they are committed to an independent assessment of the sprawling plant at 3400 E. Second St.

They agreed to pay for a comprehensive study of the site's equipment, operating systems and inspection schedules, one that could last six months.

"These incidents are unacceptable to Valero, to me, and employees as well," said Douglas Comeau, general manager of the Benicia refinery.

The refinery, which supplies 25 percent of the Bay Area's gasoline, had an abysmal 2003. It was marred by at least six fires, a sizable oil spill and maintenance failures that cut gas output by nearly a third during the peak of the summer driving season.

"This is an emergency and everyone knows it," said Dana Dean, an environmental activist and member of a community advisory panel that meets with Valero.

Several council members said Tuesday that they want to explore drafting an industrial safety ordinance similar to one in Contra Costa County.

"Regulation requirements alone cannot do enough," Vice Mayor Elizabeth Patterson said.

Valero, which operates 14 refineries, acquired the Benicia plant from Exxon in 2000.

Although no one was hurt during more than a dozen incidents at the Benicia plant last year, the problems raise difficult questions about how to improve safety.

Built in 1969, the refinery is the newest in California and, in theory, less susceptible to serious equipment failures than the five aging East Bay refineries.

A central question swirls for the work that lies ahead: What is going wrong?

Valero officials said Tuesday that they want to solve the problems, saying they will hire an outside firm to analyze the safety culture at the plant, a process that would be "open and transparent."

The hired firm, a Valero official said, would report monthly to the seven-member Community Advisory Panel. A final report would be issued in about six months.

In the meantime, Benicia will hire its own refinery expert, City Manager Jim Erickson said.

Valero and the city may share the costs of the adviser, who would review the safety audit and assist in the scope of the study.
A four-person committee will recommend an adviser to the council Feb. 3.

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