Greka Energy Corporation, Violating Safe Drinking Water Act, California 2007

Santa Maria Refining Company, a subsidiary of Greka Energy Corporation, was sentenced in June 2007 after pleading guilty to federal charges stemming from the illegal disposal of hazardous refinery waste and subsequent false statements to the Environmental Protection Agency (EPA). The case, investigated since April 2004, revealed a deliberate scheme to circumvent environmental regulations and potentially contaminate critical groundwater resources in California.

According to court documents, Santa Maria Refining intentionally pumped contaminated wastewater – a byproduct of the oil refining process – into underground wells not authorized for such disposal. These Class II injection wells are designed for handling brine separated from crude oil, not the complex and dangerous mix of chemicals present in the refinery’s wastewater. The illegal practice risked introducing harmful pollutants into the local aquifer, posing a significant threat to public health and the environment.

The wastewater contained benzene, a known carcinogen with the potential to cause anemia, excessive bleeding, immune system suppression, and other serious health issues. Investigators discovered that Greka Energy officials knowingly and routinely engaged in this practice, prioritizing cost-cutting measures over environmental compliance. The company’s actions were a clear violation of the Safe Drinking Water Act (SDWA), designed to protect the nation’s drinking water sources.

The deception didn’t end with the illegal dumping. When questioned by the EPA, Santa Maria Refining initially attempted to mislead investigators. A company manager was found to have lied to the agency, claiming the wastewater was not being injected for disposal purposes. This deliberate attempt to obstruct the investigation led to additional charges for making false statements to a federal agency—a violation of 18 U.S.C. 1001.

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Sentencing and Penalties

On April 11, 2007, the company was formally charged with one count of making false statements and one count of violating the Safe Drinking Water Act (42 U.S.C. 300h2 (b)(2)). The company entered a guilty plea on April 12, 2007. On June 11, 2007, Santa Maria Refining Company was sentenced to 36 months of probation, a $800 special assessment fee, $15,500 in restitution to the EPA, and a substantial $1 million fine. While the financial penalties are significant, critics argue they may not fully compensate for the potential long-term environmental damage and public health risks created by the company’s actions.

Key Facts

Defendant: Santa Maria Refining Company (Greka Energy Corporation subsidiary)
Crime: Illegal disposal of hazardous waste and false statements to the EPA.
Location: California
Year: 2007
Statutes Violated: 42 U.S.C. 300h2 (b)(2) (Safe Drinking Water Act), 18 U.S.C. 1001 (False Statements)
Contaminant: Benzene
Penalty: 36 months probation, $800 assessment, $15,500 restitution, $1 million fine

This case serves as a stark reminder of the consequences of prioritizing profit over environmental responsibility. The GrimyTimes will continue to follow developments related to environmental crimes and hold polluters accountable.

Source: EPA ECHO Enforcement Case Database

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