Tesoro, Conoco in talks over California pollution suit
Date: 11-Feb-04
Country: USA
In November, Tesoro sued ConocoPhillips' subsidiary Tosco Corp. charging Tosco had disposed of waste improperly at the 168,000 barrel per day (bpd) Martinez, California, refinery, and concealed the soil and groundwater contamination when Tesoro bought the plant.
Tosco, which was an independent company when it sold the San Francisco Bay area refinery in 2000, was purchased by Phillips Petroleum in 2001. Phillips merged with Conoco in 2002.
"We're negotiating on the outstanding complaint," said Tesoro spokesman Jon Ballesteros.
Conoco spokesman Jeff Callender declined to discuss negotiations between the companies.
"We were surprised by the allegations," Callender said about Tosco's lawsuit. "We are unaware of any facts that support them. We are investigating them."
Conoco and Tesoro were due this week in a California courtroom for arguments over a Conoco motion for arbitration of the dispute. That hearing in the state Superior Court for Contra Costa County was postponed until March 1 by mutual agreement.
Tesoro claims at least $42 million in costs to clean up the refinery site. It alleges Tosco dumped waste on the refinery grounds instead of disposing of it properly.
Both the U.S. Environmental Protection Agency and Contra Costa County are investigating Tesoro's allegations.
Callender said said Conoco is working to provide all necessary information requested by the EPA.
Tosco sold the refinery to Ultramar Diamond Shamrock in 2000, but the Federal Trade Commission ordered the refinery sold when Valero Energy Corp. (VLO.N: Quote, Profile, Research) , which already owned two California refineries, bought Ultramar in 2001.
Because of the FTC order, Tesoro bought the refinery from Tosco in 2002 and not Valero.
