FOR IMMEDI ASE: IATE RELEA August 5, 201 A 13 S ASE NEWS RELEA VRON USA INC. EN CHEV N TEST PLE TO LA NTERS NO CONT EA ABOR CODE H A AND HEALTH AND SAFFETY COD VIOLA DE FOR AUG ATIONS F 2012 GUST 6, 2 E HMOND R FIRE AT RICH RY REFINER z, ark Martinez CA -- Ma A. Peter ct rson, Distric Attorney of Contra C nty, Costa Coun and the e ia Californi Department of Justiice, announnced on Mo onday that C SA, Chevron US Inc. wa as d nal int of d charged in a crimin Complai with six violations o the Labor Code and Health and d C Safety Code. Chev o o arges at arra vron USA, Inc. pled no contest to all six cha aignment. n Chevron was convi lating the Labor Code by, among other thing failing to icted of viol L g gs, o d s correct deficiencies in equipm ment and continuing to use equipm ment which was outsid de ailing to pre acceptable limits; fa event non-e ing emergency personnel from enteri the ncy emergen area; fa ailing to imp njury and Ill plement an effective In lness Preve gram ention Prog ct es h d to protec employee from an imminent hazard; and failing to r require the use of ve ent ct es protectiv equipme to protec employee from exp posure to ppotential harm. Chevro on o d he was also convicted of two violations of th Health and Safety C e Code for the negligentt n emission of air contaminants. o ement Chevron has ag As part of this settle spect every piece of p greed to ins y ed pipe identifie ect as subje to sulfida sion to ensure that eve pipe is of sufficient thickness to ation corros ery operate safely. a nt The plea agreemen also requ ompany to m uires the co make subst nges to its tantial chan business practices in order to protect the health and safety of its workers, emergenc s e d cy ders, and local residents. respond o f “This criminal case achieves our goals of holding Chevron acc or countable fo their conduct, protecting the public, and ensur g r ring a safer work envirronment at the refinery y” said District Attorne Mark Pe ey his resolution is also poss eterson. “Th historic r s o sible due to n’s Chevron commitm w w to ment to do more than what is required by law in order t help ensure er s nothing like this eve happens again.” The Aug 2 e gust 6, 2012 fire at the Chevron USA Inc. Re U Richmond, C resulted efinery in R CA d c c ure from a catastrophic pipe ruptu releasing a flamma sed able fluid us in the hhydrocarbon n T refining process. The high tem f mperature fluid then va nd d aporized an engulfed nineteen n Chevron USA Inc. employees. Approxim mately two m er al minutes afte the initia release, the ble o or flammab portion of the vapo cloud ignited. The r he d ng rupture of th pipe and the burnin of _________________ ____________ ________________ _________________ _________________ ________________ _________________ _________________ _______ Special Opeerations Division 57-8604 (925) 95 900 Ward Street, Fourth Floo or 46-4683 Fax (925) 64 P.O. Box 6770 Martinez, Caalifornia 94553 the vapor resulted in a large plume of unknown and unquantified particulates and vapor into the environment. As a condition of the plea, Chevron will be placed on probation for a period of three years and six months. During that time, Chevron is ordered to conduct a 100%- component inspection of all carbon steel piping systems identified as susceptible to sulfidation corrosion and permit oversight of decisions related to the repair or replacement of these pipes by the California Division of Occupational Safety and Health (“Cal/OSHA”). Chevron must also confer with experts about what repairs and upgrades must be done and document the reasons that any repairs or upgrades are not done or are deferred. Chevron is also ordered to include a consideration of damage mechanisms when making changes to work processes to ensure safeguards are in place to control hazards; provide enhanced safety training; and promote transparency through reporting and verifications reports. “The prosecutors and investigators in the Contra Costa County Environmental Protection Unit work closely with Cal/OSHA and the Bay Area Air Quality Management District,” said District Attorney Peterson. “We would like to thank Cal/OSHA and the Bay Area Air Quality Management District, because without their hard work, professionalism, and diligent support this resolution would never have occurred.” Under the settlement, Chevron must also pay $2 million dollars in restitution and costs which includes $1.28 million in fines and penalties, and $575,000 in costs to Cal/OSHA, the Bay Area Air Quality Management District, and the California Department of Justice. Chevron will also be required to contribute $145,000 to Richmond BUILD, a public- private partnership focused on developing well trained and skilled workers in the high- growth, high-wage construction and renewable energy fields. This case was handled in Contra Costa County by Deputy District Attorney Stacey Grassini and Senior Inspector Jeff Soler and for the California Department of Justice by Deputy Attorneys General Brett Morris and Rose Fua.