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April 2, 2010

Fact sheet: Details of L&I's settlement agreement with Tesoro

  • In April 2009, L&I cited the Tesoro Refining and Marketing Co. for violations found at its Anacortes refinery as a result of a focused, months-long inspection that was part of a federal National Emphasis Program aimed at inspecting all petroleum refineries in the U.S.
  • In total, L&I cited Tesoro for 17 “serious” safety and health violations, with penalties totaling $85,700. There are three categories of violations for which a company can be cited. Those labeled “serious” involve safety violations where there is a possibility of serious injury or death.
  • Tesoro appealed the citations. Many appeals take years to resolve, and during that time, employers are not required to address hazards identified during inspections.
  • In November 2009, L&I entered into a settlement agreement with Tesoro in order to abate the hazards found at the refinery more quickly than would have been otherwise possible had the appeal process continued.
  • L&I agreed to reduce the fine to $12,250 and set aside 14 of the violations. In exchange, Tesoro agreed to hire a third-party national expert to review safety hazards identified by L&I. If the third-party consultant verified the hazards, Tesoro then would be required to take actions to correct them.
  • This third-party consultant, AcuTech, was retained by Tesoro in February and had begun work on its safety assessment of the refinery. A team from the company had visited Tesoro in early March.
  • The settlement agreement required the consultant to issue its initial report of its findings within six months. That report has not yet been completed.
  • Under the settlement, L&I can seek enforcement of any of the terms of the agreement in Skagit County Superior Court.


Contact: Hector Castro, L&I communications, 360-902-6043

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