Pauley’s Controversial Head of Refining to Resign Soon

Mark G. Newgard, one-time president and chief operating officer of Pauley Petroleum Inc., will resign his current job as executive vice president of the independent oil company effective July 31, the company announced Thursday.

Newgard, who joined Pauley in 1987 from Edgington Oil Co., oversaw the company’s refining operations in Southern California. Company spokesman Larry Fisher said Newgard decided to leave after Pauley put its Carson refinery on the block last December as part of its strategy to phase out its refining business.

Newgard was on vacation and could not be reached for comment.

In its announcement, the company said Newgard would pursue other professional interests but did not go into specifics.

In a statement, Pauley Chairman Robert O. Anderson said: “It is with regret that we accept Mr. Newgard’s resignation. He has brought our refinery operations forward effectively and their future success seems assured. We wish him well.”

As head of refining, Newgard found himself the target of charges by the South Coast Air Quality Management District for alleged violations of air quality regulations. Those charges were eventually dropped, Fisher said.

Newgard also found himself at odds with city officials during the expansion of the Carson refinery, exchanging heated letters until permits were approved.

Before joining Pauley in 1987, Newgard was president and chief executive of Edgington Oil, which at the time was a subsidiary of Saudi arms merchant Adnan Khashoggi’s Triad Corp. Newgard was reportedly instrumental in persuading the billionaire to sell the Los Angeles asphalt and oil company in late 1988.

In May, 1987, Newgard joined Pauley, the small oil company founded by the late millionaire Edwin W. Pauley, under William R. Pagen, who was then chairman.

Shortly afterward, Pauley announced its merger with Hondo Oil & Gas, the private oil company owned by former Atlantic Richfield chairman and legendary oilman Robert O. Anderson. Anderson took over the company and Newgard was named executive vice president in charge of refining operations.

Newgard was also president of Pauley subsidiary Fletcher Oil & Refining Co., which operated the Carson refinery. Pauley bought Fletcher, which at the time had filed for bankruptcy protection, for $8 million.