Two WA oil refineries fined over $1.3M each for mishandling of sludge and acid waste

OLYMPIA, WA – Two oil refinery operators in northwest Washington, HF Sinclair and Tesoro, have been hit with fines for improper management of oily sludge and acid waste at their facilities.

Washington’s Department of Ecology said Tuesday that HF Sinclair would be penalized $1,303,000 and Tesoro $1,397,000 for violations of dangerous waste laws. Both companies run refineries located in Anacortes.

Each of them has 30 days to pay the penalties or appeal to the state Pollution Control Hearings Board.

The penalty against HF Sinclair stems from a September 2023 incident where oily process wastewater overflowed into a spill containment area at the company’s refinery.

The containment area is intended to capture spills of non-hazardous wastewater and was not designed to be a dangerous waste storage area, according to the Department of Ecology.

Hazardous sludge settled out of the untreated wastewater and remained for 11 months before HF Sinclair removed and disposed of it in nine 20-yard containers.

After removing the sludge, the single liner for the containment area was found to be ripped.

“The lengthy delay in cleaning up the spill unacceptably increased risks that the material could have escaped into the environment,” the Department of Ecology said in a news release.

An HF Sinclair spokesperson acknowledged receipt of the penalty notice in an email on Tuesday and affirmed the company’s commitment to operating safely and responsibly.

“While we disagree with the assertions, we look forward to working with the Department of Ecology to address its concerns,” said Corinn Smith, senior director of corporate communications for HF Sinclair. “Our number one priority remains the safety of our employees and the communities where we operate.”

The Tesoro penalty is related to the company’s management of a 150,000-gallon pond that held spent sulfuric acid from industrial processes at its Marathon Anacortes refinery.

The wastewater in that pond was frequently about the same pH as battery acid, qualifying it as a dangerous waste, according to the Department of Ecology.

Inspectors flagged the problem in 2022, noting that the acidity of the pond needed to be controlled to prevent damage to the pond’s liner and a potential toxic release.

The Department of Ecology later began mandating regular testing of the pond, which revealed that dangerous acidity was an ongoing problem.

It took Tesoro nine months to implement an alternative management method for the waste, according to the Department of Ecology.

Tesoro is currently working with the Department of Ecology to remove the remaining residue in the pond.

A spokesperson for Tesoro did not respond to a request for comment on Tuesday afternoon.

The Department of Ecology is still investigating whether there was environmental damage from the mishandling of the dangerous wastes.

“HF Sinclair and Tesoro are two of the largest industrial facilities in the state, and safely handling millions of gallons of hazardous materials every day is their core business,” said Tom Buroker, director of Ecology’s northwest region. “They have the expertise, the resources, and the responsibility to extend that level of attention to their waste.”

Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.

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