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Citgo and subsidiary found guilty: Jury says storage tanks in Corpus Christi lacked proper emissions controls.

Houston Chronicle (Houston, TX)

| June 28, 2007 | COPYRIGHT 2007 Houston Chronicle. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Brett Clanton

Jun. 28--Citgo Petroleum Corp. and its refining subsidiary were convicted Wednesday of breaking federal environmental laws by operating two open-air storage tanks without proper emission controls at a refinery in Corpus Christi.

But Citgo was acquitted by a federal jury on charges that it knowingly allowed wastewater in the tanks to expose the atmosphere to illegal levels of benzene, which research has linked to cancer.

Citgo, the Houston-based arm of Venezuela's state-owned oil company, will face fines up to $1 million or twice the economic gain of the violations, whichever is greater, for the felony violations of the Clean Air Act, the Department of Justice said. It also could be put on probation for five years.

U.S. District Court Judge John Rainey set sentencing for Oct. 18.

The company continued to maintain its innocence, saying the huge tanks, known as 116 and 117, were not required to be equipped with roofs or other emission controls.

Citgo attorney Dick DeGuerin said he was disappointed by the verdict, and that the company will appeal.

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