) - along with two of its subsidiaries - has agreed to shell out
$1.1 million to settle claims with the Environmental Protection
Agency (EPA) regarding the infringement of federal air pollution
In its complaint, the environmental watchdog has accused the
company of failing to come up with adequate checks and balances
to ascertain for any harmful pollutants during the production of
gasoline. As per the agency, Tesoro has violated the Clean Air
Act at four refining units - Salt Lake City (Utah), Mandan (North
Dakota), Anacortes (Washington) and Kenai (Alaska) - that
The EPA added that Tesoro was unable to comply with vital
safeguards like record-keeping, reporting, sampling and testing
standards under the former's fuel program. This may lead to
unhealthy emissions in violation of U.S. standards and
deteriorate the nation's air quality.
Apart from the monetary penalty, Tesoro will have to put into
practice a plan to prevent any such future lapses.
San Antonio, Texas-based Tesoro is an independent refiner and
marketer of refined petroleum products in the western U.S. The
company operates in two segments: Refining (accounts for bulk of
the company's operating income) and Retail.
The Refining segment manufactures and sells gasoline and
gasoline-blend stocks, jet fuel, diesel fuel, and other refined
products to customers, primarily in the mid-continental and the
western U.S. This segment also markets liquefied petroleum gas,
petroleum coke, and asphalt.
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TESORO CORP (TSO): Free Stock Analysis Report
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Tesoro currently carries a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Meanwhile, one can look at
Alon USA Energy Inc.
Ferrellgas Partners L.P.
) as good buying opportunities. These oil refiners and marketers
- sporting a Zacks Rank #2 (Buy) - have solid secular growth
stories with potential to rise from current levels.