Oregon regulators hit Zenith Energy with $372K+ fine for 'unauthorized' operations
PORTLAND, Ore. (KOIN) — Weeks after Oregon environmental regulators halted their permitting process for Zenith Energy, they have urged the fossil fuel storage company to secure another land use permit from the city of Portland.
The Oregon Department of Environmental Quality publicly requested a new Land Use Compatibility Statement from Zenith Energy on Friday.
In August 2021, Portland’s Bureau of Development Services denied the company’s air quality permit due to “potential impacts of the facility’s operations on the environment and on historically marginalized groups.” The following year, the agency approved the permit after the Northwest Portland terminal promised to phase out its crude oil transports by 2027 — among other commitments.
It wasn’t until Nov. 14 of this year that ODEQ revealed it had paused its permitting process for Zenith. The agency reported that it needed to investigate the company’s operations on “adjacent properties” after officials conducted an “unannounced inspection” of the terminal.
According to Friday’s announcement, Zenith was not authorized in its use of the McCall dock between April 2021 and June 2024. In addition to requesting a new land use permit that includes these operations, regulators also issued the company a $372,600 fine.
In a statement provided to KOIN 6 News, Zenith’s Chief Commercial Office Grady Reamer said the company has provided ODEQ with “full visibility” into its Portland facility for years.
“The City has not expressed any concern about the marine operations being incompatible with the LUCS, and has in fact issued a greenway permit, an amendment to the franchise agreement for new marine connections and is finalizing construction permits for those connections,” Reamer said. “So, we are perplexed at the DEQ’s use of a technicality to request an additional LUCS for ongoing approved marine operations, which will only delay the renewable transition the City and State are trying to accomplish.”
The company must submit a new land use permit by Feb. 4 of next year. It also has 20 days to appeal the hefty fine.