A federal judge ordered HVI Cat Canyon Inc., formerly known as Greka Oil and Gas, to pay $2.2 million to Santa Barbara County with interest to cover costs associated with spills at its Santa Maria facilities.
The ruling came from U.S. District Judge Fernando Olguin in Los Angeles on May 19, and settles at least a piece of a 2011 civil case alleging negligence by the company for oil and other chemical spills, some going back as far as 2005. Olguin’s decision comes at a time when the former oil giant is again receiving attention following former Santa Barbara County 5th District Supervisor Mike Stoker’s appointment to the Environmental Protection Agency (EPA).
Stoker, a former spokesperson for Greka, was sworn in as the Region 9 chief for the EPA on May 21. He will oversee EPA offices in California, Arizona, Hawaii, Nevada.
The move by the Trump administration was greeted with disapproval from political opponents and environmental groups, who say Stoker’s track record representing the oil firm and his history of climate change denial made a poor fit at the regulatory agency.
“Michael Stoker was a mouthpiece for one of the most reckless and spill-prone oil companies in the nation,” Kassie Siegel, director of the Center for Biological Diversity’s Climate Law Institute, told the San Francisco Chronicle. “He’ll be a convenient foot soldier for Trump’s polluter-friendly EPA, and the people and wildlife of the Pacific Southwest will suffer for it.”
Dianne Feinstein (D-California) wrote a letter to EPA Administrator Scott Pruitt saying she was “particularly troubled” by Stoker’s appointment.
Alena Simon, Santa Barbara County Organizer for Food and Water Watch, told the Santa Maria Times that Stoker’s appointment was concerning and called Greka “one of the, if not the single worst, polluter in the region.” She said it was “ironic” that a spokesperson for “a company sued by the EPA for violating the Clean Water Act is now being selected to lead the agency.”
Stoker has repeatedly defended his work with Greka, saying his work there helped bring the company up to regulatory standards.
“The analogy I would make is how after BP had their oil spill—I was brought in to clean up that mess,” he told the Times.
Following Stoker’s appointment as head of the region, the Associated Press (AP) quoted a longtime EPA Superfund employee who called Greka “the worst oil company I’ve ever seen.”
According to the AP, between 1999 and 2008, the Santa Barbara County Fire Department responded to more than 400 spills and leaks at Greka facilities. The spills amounted to roughly half a million gallons of spilled oil and contaminated water.
The company paid more than $2 million as part of a settlement with the county in 2011. Stoker told the Pacific Standard magazine earlier this month that Greka had spent millions more improving and repairing equipment.
But that doesn’t mean Greka hasn’t continued to be the county’s perennial problem child when it comes to spills.
An annual report issued by the county on Dec. 5, 2017, found that of the 161 violations discovered by staff between 2015 and 2017, at least 145 came from Greka.
“These violations included both emission and administrative violations,” County Energy Specialist Erin Briggs said at the time. Examples of violations include failing to operate equipment in compliance with their permits, local rules and state regulations, failing to maintain equipment, failing to keep records, and operating equipment without valid permits.
Stoker’s appointment has locally been praised by a handful of parties, including COLAB—the Coalition of Labor, Agriculture and Business.
“We think he’s an excellent pick,” COLAB Executive Director Andy Caldwell said. “He has demonstrated experience in managing and directing regulatory efforts in a manner that maximizes the benefits while minimizing the costs.”
Robert Lapsley, president of the California Business Roundtable, also praised the Trump administration’s move.
“To grow jobs in California, we need balance between our important environmental needs and diverse economy,” he said. “Mike Stoker understands our economy, he understands our environment, and he understands that successful public policy requires strong communication and balance.”
This article appears in May 31 – Jun 7, 2018.