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Greka Threatens to Lay Off 100 Workers

Claims Firings Would Result From “Selective Enforcement”


Saturday, February 2, 2008
By Drew Mackie (Contact)
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Beleaguered and now-highly scrutinized Santa Barbara County petroleum company Greka Oil and Gas announced on Friday, February 1, that it may terminate a portion of its workforce as a result of what a statement from the company called “selective enforcement… including stop work orders affecting 95 perfect of its production.” The statement from Greka continued that up around 100 workers would have been fired on Friday, but higher-ups allegedly postponed the action “in hope that the County’s regulators will lift the onerous stop work orders so employees can go back to work.” Then, in a follow-up statement, Greka also countered threats of financial penalties of up to $32,000 a day that the Environmental Protection Agency (EPA) said the company would incur if it doesn’t conform to the agency’s liking.

The first statement quoted Greka president Andrew deVegvar, who said that his company would continue to improve its facilities but would also seek legal options to “protect its employees and facilities from unfair discrimination.” The efforts in question fall under the “Greka Green” initiative. Announced January 29, the movement would purportedly help Greka facilities to function more in line with County environmental standards. (It bears noting, however, than on January 31, the Independent reported that County officials claim that they’ve responded to 18 refractions just since January 15, the date of meeting at which the Board of Supervisors voted to explore ways to better monitor infractions by oil companies and how the County might be able to recoup the expense of cleaning up spills. )

“The County’s actions are a transparent attempt to close all of Greka’s facilities,” said deVegvar in the statement. “With this aggressive and selective inspection schedule, the County is circumventing the law and trying to shut down our facilities one by one… Greka has been unfairly singled out by the County for enforcement actions that are not being applied against other producers in similar situations.” For example, deVegvar noted, a January 23 spill of sulfolane by a Popco facility was “minimized” in the press release issued by County Fire spokesman Eli Iskow. (The statement did specify that the spilled chemical substance had “a low health toxicity level as well as a low flammability level” and was appended by the following note: “Please stress in the story that Popco / Exxon officials and plant workers have been very cooperative and helpful with the mitigation of possible hazards and the incident investigation.”)

Finally, the Greka statement touted the company’s virtues, which include that it has spent “tens of millions of dollars” on rehabilitating old equipment, that it has never been named on the annual list of major California spills that the Department of Fish & Game compiles, and that spills in December and January may be the result of sabotage and not company negligence. “The Company has stated publicly that the County should be pursuing the vandals who caused the damage, not penalizing hardworking Santa Maria families with their tactics,” the statement concluded.

The second statement noted that a press conference on Friday also featured Greka’s response to the EPA’s threats of fines. Whereas a statement from EPA Site Coordinator Robert Wise indicated that he had seen Greka employees covering spilled oil with dirt rather than cleaning it up, Greka Incident Coordinator Robert Tull said these allegations were not true. Tull’s quote from the press conference reads as follows: “Mr. Wise told me he didn’t actually witness employees covering up the oil, but relied on what the Coast Guard Strike Team had said… I went out to the site today with the Coast Guard and we got the misunderstanding straightened out. What they had told Mr. Wise was that we weren’t cleaning the rocks well enough. Of course, we will comply with whatever the EPA and the Coast Guard want us to do. All they have to do is tell us.”

NOTE: EPA representative Mary Simms contacted the Independent on March 5 with the following note, which clarified her organization's perspective on the alleged improper cleaning efforts by Greka empoyees: "During the inspection, EPA/Coast Guard observers saw fresh dirt covering spilled oil. The fresh dirt did not appear to have been deposited randomly over the oil, and Greka’s employees had not left any flags or markers indicating that they intended to return to perform further cleanup activities. It may be that Greka employees had also failed to clean up rocks, but that was not the basis for Mr. Wise’s actions."

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I live in Mussel Shoals where the Rincon Island facility remains shut down. The State Lands Commission gave the go ahead weeks ago to do repairs but Greka either lacks the money or the incentive to fix the bridge and resume operations. Non-operation of the facility is a basis for the State of California, which owns the land being drilled, to terminate Greka's lease. I do agree with Greka on one thing; comparitively far too much attention is being paid to Greka's facilites in Santa Barbara County when regulators should be scrutinizing the facilities in Ventura County, all of which either lie near or in the Pacific Ocean.

While I do feel sorry for the workers, it should be noted that if the facilites are not safe to run, they really do deserve to be shut down. On the other hand, if the facilities can be made safe, it will only be a matter of time before Greka sells off the facilities through the Bankruptcy Court and another operator, hopefully one not so cheap, will resume operations. The workers will be rehired if the oil can be safely pumped at a profit. At near $100 a barrel, that is a near certainty. I have seen three changes in management at the Rincon Island facility and every time the very same workers get their jobs back.

I think the death knell has been sounded for Greka. Randeep Grewal has sought to distance himself and his publically traded Green Dragon Gas, which was built upon the "success" of Greka, from the recent troubles. So a "new" president is picked who is not so new at all when you see that he's been Greka's CFO for at least the last five years. Within days of his "Greka Green" initiative the "new" guy now lashes out at Santa Barbara County and threatens to sue the County for 'discrimination', as if Greka would ever stand a chance of prevailing given that both State and Federal governement agencies echo the County's concerns. Brilliant idea. Next time I'm caught speeding, I'll just threaten to sue the police department because everyone else was going just as fast.

Now Greka hangs its own loyal employees out there as pawns in the process. Disgusting. Had Greka just spent the money on clean-up and making amends, rather than hiring a slew of lawyers, ex-FBI agents and dubious spokespersons who make outlandish claims and threaten retribution, Greka just might have stood a chance at getting its act together. Good riddance Greka. Case closed.

MusselShoalsResident (anonymous profile)
February 1, 2008 at 11:53 p.m. (Suggest removal)

Too little, too late, GREKA---- if you lay off employees, YOU are the ones to blame. You've known for years you need to repair or replace your facilities and you've chosen to play the odds and do nothing---I mean come on, Court orders?

Yes, it is a shame there will be more layoffs in this County....and that shame falls solely on GREKA's shoulders.

sbsleuth99 (anonymous profile)
February 2, 2008 at 7:18 a.m. (Suggest removal)

Another thing the new "Green Greka" will have to change is the habitual non-payment of contractors that's apparently a part of the old, bad Greka's standard operating proceedure. Many oilfield contractors won't work for them at all, and the others demand payment up front.

CharlesB (anonymous profile)
February 2, 2008 at 9:48 p.m. (Suggest removal)

Typical effort to deny, obfuscate or outright lie by oil companies. I use petroleum products but am more than willing to pay a little extra in return for environmentally sound extraction technologies. However, the obscene profits made by Exxon and others ( latest figures indicate another year of record shattering profits) indicate that they are not doing nearly all they could in that department. Greka is a disgusting, poorly run bottom feeder. Either clean up their act or shut them down ASAP. Blaming the county, mysterious eco-terrorists or sabateurs is pathetic.

Noletaman (anonymous profile)
February 3, 2008 at 6:47 a.m. (Suggest removal)

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