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Home My WebLink AboutMINUTES - 04062004 - SD5 Contra TO: BOARD OF SUPERVISORS costa sU County FROM: 'William Walker, M.D., Health Services Director �------ b DATE: April 6, 2004 SUBJECT: Interim Report on the Follow-up on Allegations Made in a Tesoro Lawsuit against Tosco SPECIFIC REQUEST(S)OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: Accept the Interim Report on the Follow-up on Allegations /Made in a Tesoro Lawsuit against Tosco submitted by Health Services. FISCAL IMPACT: No fiscal impact BACKGROUND/REASONS FOR RECOMMENDATIONS: The Board of Supervisors directed Health Services to work with other agencies in determining the validity of accusations that were made in a lawsuit that was filed by Tesoro against Tosco for alleged environmental violations. Health Services has developed a Task Force with California's Department of Toxic Substance Control and the Regional Water Quality Control Board. Attached is a copy of this report on the status and work that has been performed by this Task Force. CONTINUED ON ATTACHMENT: M YES ❑ NO USE P.,,.A A IFA ECOMMENDATION OF COUNTY ADMINISTRATOR wRECOMMENDATION 0F BOARD COM PPR'OVE OTHER t SIGNATURES : ACTION OF BOON b. 2104 APPROVED AS RECOMMENDED OTHER VOTE OF SUPE ISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND X UNANIMOUS(ABSENT NM CORRECT COPY OF AN ACTION TAKEN AND AYES: NOES: ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: Lewis G. Pascalli, Jr. ((925) 646-2286) ATTESTEDAMM 6, 2004 cc: Lewis G. Pascalli, Jr., Health Services Department JOHN SWEETEN, CLERK OF THE Randy Sawyer, Health Services Department BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR n RLS BY ,r✓{ :` DEPUTY K: interim Board Report/Stationary Sources/Tesoro/Task f=orce Interim Report on the Follow-up on Allegations Made in a Tesoro lawsuit against Tosco Introduction Tesoro Refining and Marketing Company filed a Complaint for Fraud against Tosco Corporation on November 14, 2003. The complaint states that Tosco concealed environmental conditions at the Golden Eagle Refinery. The Contra Costa County Board of Supervisors were concerned about the allegations that were raised in the complaint. At the December 2, 2003 Board meeting, the Board asked for Health Services to determine if there is any threat to the public from any environmental conditions that were raised in the complaint and to work with any other agency that may have jurisdiction in the areas that were raised in the complaint. Health Services is working as part of a Task Force to follow-up on the allegations that were made in the lawsuit that Tesoro brought against Tosco. The Task Force includes representatives from California's Department of Toxic Substances (DTSC), the San Francisco Bay Area Regional Water Control Board (RWQCB), Health Services, County Counsel, and the District Attorney's Office. Health Services and DTSC are the lead agencies. The Task Force met with representatives from Tesoro on February 6, 2004, Tosco legal counsel on February 6, 2004, Tosco representatives on March 4, 2004, Tesoro legal counsel on March 5, 2004, and Tesoro Legal Counsel on March 22, 2004. Each of these meetings, the Task Force was able to ask questions and to receive additional information about the allege violations that may have occurred at the Golden Eagle Refinery. The focus of the Task Force is on two surface ponds and areas that were designated as restricted on a plant layout that listed environmental areas of concerns. The Task Force's next actions include interviewing personnel that work for Tesoro who had worked with Tosco, when Tosco owned the Golden Eagle Refinery, and may have additional information on the allegations and to meet with the U.S. EPA to help determine the nuances of pertinent federal regulations. The Task Force will then determine what additional information and actions that will be requested from Tesoro and Tosco that is important to the investigation. Task Force Below is a listing of the actions that have been taken since the Board requested Health Services to follow-up with the allegations that were made in the Complaint for Fraud made by Tesoro against Tosco, including the formation of a Task Force. Health Services contacted Tesoro on December 4, 2004, to learn more about the allegations that were made in the Tesoro's complaint and to receive initial information. Because of Tesoro's sales contract for the Golden Eagle Refinery, Tesoro cannot give to a governmental agency any information on a situation that may have existed at the time Interim Report on the Follow-up on Allegations Made in a Tesoro Lawsuit against Tosco April 6, 2004 Tosco sold the refinery to Ultramar Inc., unless that information is requested by an agency. Tesoro is also required to make the agency requests known to Tosco. Tesoro told 'Health Services that they had already let DTSC, the U.S. EPA, and the RWQCB know of their complaint against Tosco. Health Services arranged an initial meeting with the U.S. EPA, DTSC, and the RWQCB. This meeting was held on January 9, 2004. The agencies decided to work together in their investigations and developed a Task Force. The Task Force leaders are DTSC and Health Services. After the meeting, U.S. EPA decided that, at this time, they were only concerned about remediation work that is being undertaken at the Golden Eagle Refinery and not about pursuing any enforcement action and opted out of the Task Force. The Task Force then scheduled the first meeting with Tesoro stating the authority that the different members were using for their investigations. The 'first meeting with Tesoro was held on February 6. Representatives from Health Services, DTSC, RWQCB, County Counsel, DTSC Counsel, and the District Attorney's office met with the Golden Eagle Refinery representatives and Tesoro counsel. The Task Force received information that Tesoro believes backs up their allegations for their complaint against Tosco. Also, on February 6, Health Services met with Tosco counsel to let her know of the documents that were received from Tesoro and that Tesoro stated that they would make these documents available to Tosco. Health Services discussed with Tosco counsel documents that the Task Force was interested in obtaining from Tosco and to arrange a meeting with representatives with Tosco. The Task Force met with Tosco representatives and Tosco counsel on March 4, 2004. The Task Force included representatives from DTSC, RWQCB, Health Services, DTSC Counsel, and the District Attorney's Office. The Task Force received additional information on the allegations and documents that Tosco said supported their claims that the allegations are without merit. Representatives from Health Services and DTSC met with Tesoro counsel on March 5, 2004 to let him know that documents were received and that we requested that Tosco make these documents available to Tesoro. A list of the documents that were received was given to the Tesoro counsel. Tesoro stated in their meetings with the Task Force that they were reviewing documents that were in storage to determine if any of these documents may be pertinent to the investigation. Tesoro counsel did find a number of documents that they believe might support their allegations against Tosco. The Task Force requested a meeting with Tesoro counsel to receive copies of these additional documents. The Task Force met with Tosco counsel on March 22, 2004 to discuss the additional information and to receive copies of this information. Page 2 Interim Report on the Follow-up on Allegations Made in a Tesoro Lawsuit against Tosco April C,2004 Areas of Focus Based on the initial information that has been received, the areas of greatest concerns are with two surface ponds, Deacon and South Ponds, which are located within the Golden Eagle Refinery. The federal regulations for what could be discharged to these ponds changed on May 2, 1991 and deal with what is called "primary sludge". In addition, on March 29, 1990 a change in the regulations for toxicity characteristics occurred that specifically identified fifty-two compounds that could cause a waste to be hazardous via toxicity. tethers areas of concern are listed on a layout of the refinery that are listed as restricted. This layout looks to be specifically indicating an overview of areas of environmental concern. What is Next? The Task Force will meet with the U.S. EPA to ask specific information on the Primary Sludge Rule and the toxicity characteristic regulations. This meeting is being scheduled for early April. The Task Force is also reviewing their regulations to determine if any California regulations may have been violated. The Task Force is arranging interviews with some of the employees that are now employed by Tesoro who worked at the refinery when Tosco owned the refinery. These employees may have additional information on the areas of concern. The Task Force investigation is expected to last for several months. health Services is proposing that a report be given to the Board when the investigation is complete and interim reports, as the Board feels necessary to keep them abreast of the investigation. Page 3