Zenith Energy’s Legacy of Violations and Lies

Bad News, Turns Out Zenith’s Legacy of Violations and Lies is Worse Than We Realized.

By Kate Murphy, Senior Community Organizer

We know Zenith Energy has a history of violations and misleading regulators. So we decided to answer the question: just how many violations has Zenith committed? 

The answer is outrageous. Turns out, violations appear to be part of Zenith’s business model. Since arriving in Portland, Zenith has racked up roughly 20 violations from the Oregon Department of Environmental Quality (DEQ)! Together, these violations tell the story of a fossil fuel company that has been out of compliance nearly the entire time it has been operating in Portland, a company that has misled regulators to obtain permits to expand operations, a company that cannot be trusted. 

How did this happen? Despite DEQ’s mission to “be a leader in restoring, maintaining and enhancing the quality of Oregon’s air, land and water,” DEQ showed a very high tolerance for Zenith’s violations. DEQ identified roughly 20 violations—some lasting as long as 4 years! Some of these violations are less serious, but others have the potential to  significantly harm public health, safety, and the environment. What is consistent, unfortunately, is DEQ’s unwillingness to assess meaningful penalties to deter Zenith’s future rule breaking. 

Perhaps the most shocking violation we discovered is that Zenith illegally expanded its fossil fuel operations! In April 2021, Zenith added new infrastructure and  connected to an additional marine loading dock at McCall Oil. After illegally hooking up, Zenith began using the dock to transport fossil fuels—at the same time Zenith was assuring regulators that any new infrastructure would be used exclusively to handle “renewable” fuels. 

Zenith’s illegal use of the  McCall dock went undetected by DEQ for two and a half years. But instead of issuing a penalty, DEQ is now proposing to reward Zenith by including the illegally accessed dock in Zenith’s new air permit.

Clearly, Zenith is bad news. The good news is that we can stop it. It’s up to us to demand that DEQ do the right thing and deny the air permit!

Timeline Summary Of Violations And Lies

Late 2017 and 2018: Zenith takes possession of the facility and begins handling hazardous tar sands oil without notifying regulators or the public.

1. Late 2018 – Present: Zenith submitted a Notice of Construction to DEQ to construct 32 new rail car off-loading stations, assuring DEQ that the new infrastructure would result in “no new throughput.” Instead, Zenith significantly increased throughput each year and plans to continue significantly increasing throughput in the future. 
   
   
2. 2018: Zenith failed to pay fees to the City of Portland on time.

3. November 2018 – December 2022: Zenith failed to perform the required initial test of its marine vapor combustion unit (MVCU) to ensure it was effectively capturing air pollution.

4. January 2018 – February 14, 2022: Zenith failed to submit the required Notice of Approved Construction Completion to DEQ within 30 days after completing construction of the MVCU. 

5. October 4, 2018 (Warning letter issued): Zenith stored volatile liquid products in fixed roof storage tank #67, instead of using a floating-roof tank for better pollution control.

6. October 4, 2018 (Warning letter issued): Zenith stored volatile liquid products in fixed roof storage tank #74, instead of using a floating-roof tank for better pollution control.

7. October 4, 2018 (Warning letter issued): Zenith stored volatile liquid products in fixed roof storage tank #93, instead of using a floating-roof tank for better pollution control.

8. 2019: Zenith failed to conduct a proper spill drill—using diesel fuel instead of the heavier and  more hazardous tar sands oil that Zenith was currently handling.

9. 2019: Zenith failed to submit a report for tank #68 to DEQ within 15 days after startup certifying that the tank met specifications and passed initial inspections. 

10. 2019: Zenith failed to submit a report for tank #130 to DEQ within 15 days after startup certifying that the tank met specifications and passed initial inspections.

11. February 2019 – September, 2020: Zenith failed to submit a Notice of Approved Construction Completion to DEQ within 30 days after building 32 additional rail car off-loading stations.

12. March 2019: Zenith led Portland officials to believe, incorrectly, that Zenith had stopped handling tar sands oil.

13. March 20, 2019 – February 14, 2022: Zenith failed to submit a Notice of Approved Construction Completion for tank #130 to DEQ within 30 days after completing construction. 

14. August 30, 2019 – February 14, 2022: Zenith failed to submit a Notice of Approved Construction Completion for tank #68 to DEQ within 30 days after completing construction. 

15. 2019 – February 14, 2022: Zenith failed to submit a notification of the date of construction for tank #68 to DEQ within 30 days. 

16. 2019  – February 14, 2022: Zenith failed to submit a notification of the date of construction for tank #130 to DEQ within 30 days. 

17.  2019 – February 14, 2022: Zenith failed to notify DEQ of initial startup for tank #68 within 15 days. 

18. 2019 – February 14, 2022: Zenith failed to notify DEQ of initial startup for tank #130 within 15 days.

19. January 2020: Columbia Riverkeeper and Willamette Riverkeeper sent a Notice of Intent to sue Zenith for violating its Construction Stormwater permit. In August 2021, Zenith settled and agreed to pay $115,000 to Portland Bird Alliance in lieu of civil penalties.

20. 2022: Zenith illegally lobbied City of Portland officials for a city land use approval that Zenith needed in order to get a Clean Air Act permit.

21. 2022 – January 2024: Zenith withheld information about plans to handle “renewable” naphtha from the City, DEQ’s spill response team, and the public.

22. April 2021 – March 2024): Zenith illegally expanded its fossil fuel facility to include use of the McCall Oil dock to handle additional fossil fuels. This illegal use went undetected by the City and DEQ for over two and a half years!         
    
                            

Take Action Today

For years, Zenith Energy has put our communities and our environment at risk. Now Zenith has a dangerous plan to expand its operations in Portland, increasing the threat of harm. Take action today to stop Zenith Oil-By-Rail.

Additional Resources:

Comment Writing Guide

Fact sheet on CRK page

Oregonian Article on expansion

Watch: Zenith Comment Writing Workshop