Oil giants sell thousands of California wells, raising worries about future liability; state is studying
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The state of California has sold the energy firm Valero Energy Corp.’s (VLO) California assets, raising concerns about the future state of its liability from such sales.
The state of California has sold the energy firm Valero Energy Corp.’s (VLO) California assets, raising concerns about the future state of its liability from such sales.
Photo: Michael Macor, Getty Images
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Valero Energy Corp. (VLO) is one of three energy producers whose production has fallen in California’s San Joaquin Valley.
Valero Energy Corp. (VLO) is one of three energy producers whose production has fallen in California’s San Joaquin Valley.
Photo: Michael Macor, Getty Images
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In a report released on Wednesday, the state identified five areas of potential liability: 1.) Valero for the environmental cost of not installing its own renewable energy system to replace the California Environmental Quality Act violations; 2.) Valero for its sale of excess energy to California utilities; 3.) the California utilities for not re-selling that energy to other customers and for not charging their customers for the extra energy cost when they use their plants; 4.) Valero for failing to negotiate properly the renewable energy credits that are now expected to be purchased by the state; 5.) Valero for failing to meet a deadline for buying the renewable energy credits that are now expected.
In a report released on Wednesday, the state identified five areas of potential liability: 1.) Valero for the financial cost of not installing its own renewable energy system to replace the California Environmental Quality Act violations; 2.) Valero for its sale of excess energy to California utilities; 3.) the California utilities for not re-selling that energy to other customers and for not charging their customers for the extra energy cost when they use their plants; 4.) Valero for failing to negotiate properly the renewable energy credits that are now expected to be purchased by the state; 5.)