Refinery Says It Will Clean Up Oil Spill : Environment: The Oxnard firm signs agreement with the EPA that requires safety measures to be installed so that the leakage does not occur again.

An Oxnard refinery that for years leaked oil into ecologically sensitive wetlands agreed Monday to clean up its mess and install safety measures to make sure it never happens again.

Tenby Inc., doing business as Oxnard Refinery and Chase Production, signed an agreement with the U. S. Environmental Protection Agency that requires it to commit to long-term cleanup and submit an initial plan within 21 days.

The company admitted spilling at least 10,000 gallons of oil into a ditch leading to Mugu Lagoon, an EPA spokesman said. Under the agreement, it has 90 days from the time EPA approves the plan to finish the work.

Company officials, including Chief Executive Officer Morley Chase, refused to discuss the case Monday.

Questions about the spill and the EPA agreement were referred to company lawyers, who said that the initial cleanup has been completed and that studies are under way to identify the source of the leaks--reported a year ago--and develop a long-term remedy.

“We’re unaware of any ongoing release,” said Michael Francis, a Los Angeles-based attorney for Tenby.

“We have no idea of any persistent release from production operations or the refinery operations,” he said. “It is hoped that these measures will prevent any future occurrence.”

Federal regulators said the agreement, hashed out since details of the leak were uncovered last year by state Fish and Game wardens, would ensure that the company takes responsibility for the pollution and its cleanup costs.

But even with the agreement announced Monday, federal officials said they are still working to evaluate the full extent of the spill.

“We can safely say it’s more than 10,000 gallons, but how much more we don’t know,” said David Schmidt, a spokesman for the EPA’s Western regional office in San Francisco.

“We’re prepared to require the full cleanup--no matter how big it is,” he said. “There are provisions in the agreement that call for reopening the scope of the work if it turns out to be more than what they are promising to do within the first 90 days.”

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State Fish and Game wardens first discovered the oil spill a year ago after someone reported seeing oil sheens leading to Mugu Lagoon, a sensitive saltwater habitat for a variety of species.

Fish and Game Capt. Roger Reese said damage from the spill has been significant.

“What we found were skeletal remains from crayfish and mosquito fish, and a general absence of fish and wildlife,” Reese said. “It looked like it had been a chronic problem.”

Like the EPA, however, Reese said his inspectors have yet to determine the extent of the ground-water and above-ground contamination.

“In this case, it became apparent that the problem was a lot more complex,” he said. “It will require long-term monitoring.”

The agreement announced Monday is separate from a civil suit filed against Tenby and its chief executive officer by the Ventura County district attorney’s office earlier this month.

“Those are some of the same remedies we’re seeking,” said Deputy Dist. Atty. Gregory W. Brose, who prosecutes environmental offenses.

“If it’s been agreed to in the federal case, we are obviously glad,” Brose said. “But that doesn’t mean the state’s civil case has no further (bearing).”

Brose alleges in the civil suit that Tenby and Chase illegally discharged an unspecified amount of petroleum products into state waters at least four years ago, and that the company engaged in improper business practices in doing so.

“Part of what we’ve alleged is that there’s been some negligence in allowing the releases to occur,” Brose said. “That’s a problem.”

The Ventura County Superior Court lawsuit specifically alleges that two separate oil tanks leaked into the ditch, as did oil from a flow line and pipe casings from a particular oil well.

The lawsuit asks a judge to grant a permanent injunction preventing the company from further polluting the lagoon.

“The unlawful conduct and acts of the defendants in violation of the law . . . demonstrate the necessity and legal basis for granting injunctive relief and imposition of civil penalties,” the suit contends.

Francis, the Tenby attorney, said his clients have already installed a series of measures to prevent further spills, including a set of dams and oil-water separators that will better control the product flow.

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But the work plan being drafted will further identify particular problem spots, he said.

“The assessment is intended to ensure that there are no pipelines or tanks that are leaking,” Francis said.

Even EPA officials, who could impose strict fines and penalties if the agreement is not adhered to, acknowledge that they do not yet know what specifically caused the leaks.

“What we really need to do is go out there and investigate the sources of the oil,” said EPA attorney Lisa Castanon, who is handling the case. “We know it’s getting into the ditch, but we don’t know what the source is.”