Oil Firm Faces Hefty State Fines

State health authorities have cited a National City oil recycling and distribution firm for allegedly violating hazardous waste laws, officials said Friday.

The proposed fines, totaling almost $200,000, could be among the largest such penalties levied by the Long Beach regional branch of the state Department of Health Services since the office, which covers much of Southern California, opened in late 1988, said Allan Hirsch, a health department spokesman.

The alleged violations were committed by Pepper Oil, an 11-employee, family-owned company that expects about $5 million in sales this year, said David Pepper, son of the company founder.

The most serious allegations involve the firm’s lack of liability coverage for its petroleum recycling operation and its lack of demonstrated financial backing for cleanups should the plant close, Hirsch said. Other alleged violations include unpermitted storage of hazardous wastes from other locations, inadequate labeling of containers, presence of open containers and inadequate records.

Pepper described the alleged violations as mostly procedural. He said the firm, which has been in operation since 1943, plans to challenge the major allegations, but will probably acknowledge some paper-work problems. He described the proposed fine of $198,500 as excessive.

Hirsch said the company has two basic options: confer with state regulators about negotiating a possible reduction of the fine, or appeal the state’s findings to an administrative law judge.

In the meantime, officials said, the company has been ordered to immediately correct many violations, and to remove all unpermitted hazardous waste within 10 days. The firm also has been ordered to provide documentation of liability coverage within 90 days.