But oil money politics preserves status quo
By Paul Rosenberg, Senior Editor
On Sept. 7, a Santa Barbara jury returned guilty verdicts on multiple counts against Plains All American Pipeline for its May 19, 2015 crude-oil spill near Refugio State Beach on the Gaviota Coast. It’s the same company that owns the Rancho LPG facility in San Pedro, which nearby residents have been trying to shut down for decades, due to safety concerns. Sentencing is scheduled for Dec. 13.
Plains was found guilty of a felony for “failing to properly maintain its dangerous, highly-pressurized pipeline, which led to the discharge of crude oil into the Pacific Ocean,” according to a press release from Attorney General Xavier Becerra and Santa Barbara County District Attorney Joyce E. Dudley. It was also found guilty of eight misdemeanors: one count of failing to timely notify emergency response agencies; six counts of killing marine mammals, protected sea birds and other marine life; and one count of violating a county ordinance prohibiting oil spills.
“Engaging in this kind of reckless conduct is not just irresponsible — it’s criminal,” Becerra said. “Today’s verdict should send a message: If you endanger our environment and wildlife, we will hold you accountable. At the California Department of Justice, we will continue prosecuting corporate negligence and willful ignorance to the fullest extent of the law.”
The verdict was not a surprise to homeowner activist Janet Gunter, given the company’s record. “Plains went on a rampage during the 1990s and in the 2000’s, purchasing a huge number of antiquated pipelines and facilities across the US and Canada. So, what they did was vastly increase their inventory,” Gunter told Random Lengths News. “They did this on a gamble. Their gamble was, in our case, with our lives.”
The oil spill, as tragic as it was, did not result in any loss of human life. But it did show how risky Plains’ aging second-hand infrastructure is, as well as how inadequate its safety procedures are. It also showed how years of excuse-making melted under the grueling scrutiny of a criminal trial.
David Wright was Plains vice president at the time, Gunter recalls. “Dave told us in no uncertain terms that he advised against the purchase of AmeriGas [Rancho’s previous owner], because he well understood the controversy, the risk, etc., etc. They did not listen to him,” she said. “So, against the advice one of their own vice presidents, they bought that thing understanding how antiquated it was, the vulnerability, they knew all about the earthquake situation, they knew about all the homes, they knew about all of the standards, they understood everything. And most of all, they understood the risk.”
The Santa Barbara verdict could really shake things up. “The bottom line here is these guys did this on the gamble. The company is going to pay out gazillions of dollars in lawsuits, everybody’s going start coming forward now with lawsuits, because now they have the conviction, so … this whole thing is crazy,” Gunter said. “Meanwhile you’ve got Valero and Tesoro — we contacted them and sent them letters, saying why don’t you store it on your own property, you know what’s going on here. They have changed their story.” Apparently, because storing LPG themselves would necessitate meeting existing safety codes — codes that Rancho has never come close to complying with.
About two years ago, Gunter questioned Valero representative Steve Faichney on this point. “If Valero there were just storing the butane there, and Rancho is self-insured, and a disaster happens, and they have no coverage, doesn’t Valero and Tesoro have some liability?” she recalls asking. This caused a flurry of confusion, eventually resulting in the current state of denial by both companies. However, neither has put their denials in writing.
“So, it is pretty obvious that this is a flagrant method to spin the issue of ownership of the explosive commodity in order to circumvent liability,” Chuck Hart, president of San Pedro Peninsula Homeowners United wrote in a letter to Valero on Aug. 15.
Years of intensified activism since the San Bruno pipeline explosion have prompted local politicians to a good deal of public hand-wringing, but precious little action, as activists see things. Most recently is Rep. Nanette Barragán’s bill that would provide up to $500 million for relocation of LPG facilities. The idea of getting 217 other representatives to vote for that seems far-fetched at best.
What’s needed, instead, is rigorous enforcement of existing laws and regulations. And what stands in the way, Gunter and other activists believe, is the considerable political clout of Rancho’s business allies, Tesoro and Valero. “Plains isn’t the kind of player that Valero and Tesoro as far, as far as campaigns,” Gunter said.
It just might take getting oil money out of political campaigns to get Rancho LPG out of San Pedro.