Shell Pipeline Company Case Settles for $300,000

This page last reviewed October 9, 2018

On July 16th 2017, CARB discovered that Shell Pipeline Company (Shell) purchased and distributed non-compliant fuel supplied from an overseas vessel controlled by George E. Warren Corporation (GE Warren).  The non-compliant fuel was supplied to multiple terminals from the Shell Carson terminal, with a small quantity eventually reaching retail service stations.

CARB alleges three violations of 13 CCR 2262.3(a) for supplying or offering for supply three tanks of fuel exceeding specified cap limits for olefins. CARB also alleges seven violations of 13 CCR 2266.5(f) for mixing non-compliant fuel from the import vessel with presumed compliant fuel in the Carson shore tanks. CARB finally alleges five violations of 13 CCR 2268(a) for retail sales of non-compliant fuel.

Once informed about the non-compliant fuel, GE Warren and Shell took prompt action to correct the fuel properties of all the non-compliant fuel that had not gone out through retail. After correcting the fuel properties, GE Warren and Shell are now in compliance with the CaRFG regulation. Shell agreed to offset a portion of the penalty by funding two Supplemental Environmental Projects for a combined total offset of approximately $150,000.00.