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CHEVRON SEEKS COURT ORDER TO KEEP EL SEGUNDO CLEAN AIR PROJECT ON SCHEDULE

 SAN FRANCISCO, Oct. 8 /PRNewswire/ -- Chevron (NYSE: CHV) today is seeking a court order to allow the company's El Segundo, Calif., refinery near Los Angeles to continue work on a federally mandated $700 million clean fuels project.
 "We're disappointed we had to take this step, but we want to do everything possible to keep our project going so we can meet the government's deadline to produce cleaner gasolines," said Mike Holmes, refinery general manager.
 In an attempt to avoid a project shutdown, Chevron held talks this week with the Environmental Protection Agency, which ordered the project halted today.
 "Unfortunately, we were unable to resolve matters with the EPA," said Holmes. "They have concerns over the project's permit process -- and when work could begin -- even though we've strictly followed the requirements of the South Coast Air Quality Management District, which is responsible for issuing the permits.
 "The preliminary work on the project has caused no environmental impacts and was essential to meeting the federal deadline for reformulated fuels."
 Holmes said Chevron is hoping for a quick and favorable ruling from the federal court of appeal in San Francisco so the project can stay on schedule and keep 300 contract workers on the job.
 "In the meantime, we are working cooperatively with the local district to help them complete the permit process as soon as possible. We hope to avoid an extended shutdown, which would likely result in having to lay off 300 people," he said.
 "In our discussions with EPA, we explained that this project is unique and is designed to reduce overall emissions from the refinery. As a result, we've had to start preliminary project work sooner, but it is a better project environmentally.
 "Our talks this week with the EPA were productive, and we feel they now understand we've been proceeding in good faith with the local air district," said Holmes.
 Chevron's El Segundo refinery began the permit process in March 1992 for its clean fuels project, which involves nine new or reconfigured facilities being built over three years. The project will equip the refinery to make gasolines designed to reduce tail pipe emissions 30 to 40 percent, as required by federal and state clean air rules taking effect in 1995 and 1996.
 In the recent dispute, EPA had originally ordered the El Segundo refinery to stop work on Oct. 1. Chevron stopped work as ordered, but after talks that same afternoon, the EPA delayed its order one week to 2 p.m. Oct. 8. Work was restarted Monday and is being shut down again today.
 Chevron's El Segundo refinery, located near Los Angeles, is one of the largest gasoline suppliers on the West Coast, capable of processing up to 255,000 barrels of crude oil daily.
 The temporary shutdown of work on the clean fuels project is not affecting normal refinery operations.
 -0- 10/8/93
 /CONTACT: Rod Spackman of Chevron's El Segundo Refinery, 310-615-5281; or Mike Libbey, 415-894-4440, or Jim Hendon, 415-894-0108, both of Chevron/
 (CHV)


CO: Chevron Corp.; U.S. Environmental Protection Agency ST: California IN: OIL ENV SU:

TM -- SF012 -- 0220 10/08/93 14:07 EDT
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Publication:PR Newswire
Date:Oct 8, 1993
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