press release

Chevron Press Release - Chevron And Department Of Justice Agree On Infractions At Platform Offshore

LOS ANGELES, March 5, 1997 - Chevron U.S.A. Production Company announced today that it has reached an agreement with the Department of Justice to pay $1.165 million for infractions at the company's Platform Grace, offshore Carpinteria, Calif. The agreement, presented today in Los Angeles federal court, involves a safety valve that did not meet Minerals Management Service requirements for a three-month period in 1994. The infractions did not cause any environmental damage.

"We regret that the valve was not repaired in a timely manner; this is contrary to Chevron policies," said Carnie Block, vice president and general manager of Chevron U.S.A. Production Company's Western Business Unit. "We are confident that the many steps we have taken since 1994 ensure the situation will not happen again.

"Although nothing was released into the ocean, and there were other safety valves in the system, we were out of compliance with regulations that govern operation of the platform," said Block.

Upon receiving notice of the infractions in September 1994 from the Minerals Management Service, Chevron shut down production from the platform and launched an investigation. As a result of the investigation, the company changed the procedures on how these safety valves are tested and maintained, and took the appropriate disciplinary actions.

"Our safety record has been exemplary, as shown by the three 'Safety Award for Excellence' commendations we have received from the Minerals Management Service since 1991 for Chevron's offshore California platforms," said Block. "Operating safely and protecting the environment are Chevron's top priorities."

Platform Grace is one of five platforms operated by Chevron in the Santa Barbara Channel. The platform was installed in 1979 and is located 12 miles offshore Carpinteria.

Updated: March 1997