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1 FOR IMMEDIATE RELEASE: August 5, 2013 NEWS RELEASE CHEVRON USA INC. ENTERS NO CONTEST PLEA TO LABOR CODE AND HEALTH AND SAFETY CODE VIOLATIONS FOR AUGUST 6, 2012 FIRE AT RICHMOND REFINERY Martinez, CA -- Mark A. Peterson, District Attorney of Contra Costa County, and the California Department of Justice, announced on Monday that Chevron USA, Inc. was charged in a criminal Complaint with six violations of the Labor Code and Health and Safety Code. Chevron USA, Inc. pled no contest too all six charges at arraignment. Chevron was convicted of violating the Labor Code by, among other things, failing to correct deficiencies in equipment and continuing to use equipment which was outside acceptable limits; failing to prevent non-emergency personnel from entering the emergency area; failing to implement an effective Injury and Illness Prevention Program to protect employees from an imminent hazard; andd failing to require the use of protective equipment to protect employees from exposure to potential harm. Chevron was also convicted of two violations of the Health and Safety Code for the negligent emission of air contaminants. As part of this settlement Chevron has agreed to inspect every piece of pipe identified as subject to sulfidation corrosion to ensure that every pipe is of sufficient thickness to operate safely. The plea agreement also requires the company to make substantial changes to its businesss practices in order to protect the health andd safety of its workers, emergency responders, and local residents. This criminal case achieves our goals of holding Chevron accountable for their conduct, protecting the public, and ensuring a saferr work environment at the refinery said District Attorney Mark Peterson. This historic resolution is also possible due to Chevron s commitment to do more than what is required by law in order to help ensure nothing like this ever happens again. The August 6, fire at the Chevron USA Inc. Refinery in Richmond, CA resulted from a catastrophic c pipe rupture releasing a flammable fluid used in the hydrocarbon refining process. The high temperature fluid then vaporized and engulfed nineteen Chevron USA Inc. employees. Approximately two minutes after the initial release, the flammable portion of the vapor cloud ignited. The rupture of the pipe and the burning of Special Operations Division (925) Ward Street, Fourth Floor Fax (925) P.O. Box 670 Martinez, California 94553

2 the vapor resulted in a large plume of unknown and unquantified particulates and vapor into the environment. As a condition of the plea, Chevron will be placed on probation for a period of three years and six months. During that time, Chevron is ordered to conduct a 100%- component inspection of all carbon steel piping systems identified as susceptible to sulfidation corrosion and permit oversight of decisions related to the repair or replacement of these pipes by the California Division of Occupational Safety and Health ( Cal/OSHA ). Chevron must also confer with experts about what repairs and upgrades must be done and document the reasons that any repairs or upgrades are not done or are deferred. Chevron is also ordered to include a consideration of damage mechanisms when making changes to work processes to ensure safeguards are in place to control hazards; provide enhanced safety training; and promote transparency through reporting and verifications reports. The prosecutors and investigators in the Contra Costa County Environmental Protection Unit work closely with Cal/OSHA and the Bay Area Air Quality Management District, said District Attorney Peterson. We would like to thank Cal/OSHA and the Bay Area Air Quality Management District, because without their hard work, professionalism, and diligent support this resolution would never have occurred. Under the settlement, Chevron must also pay $2 million dollars in restitution and costs which includes $1.28 million in fines and penalties, and $575,000 in costs to Cal/OSHA, the Bay Area Air Quality Management District, and the California Department of Justice. Chevron will also be required to contribute $145,000 to Richmond BUILD, a publicprivate partnership focused on developing well trained and skilled workers in the highgrowth, high-wage construction and renewable energy fields. This case was handled in Contra Costa County by Deputy District Attorney Stacey Grassini and Senior Inspector Jeff Soler and for the California Department of Justice by Deputy Attorneys General Brett Morris and Rose Fua.

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