Excellence Refined - 30 Years - Valero
Excellence Refined - 30 Years - Valero Excellence Refined - 30 Years - Valero
VALERO LINES EXCELLENCE REFINED INSIDE: Photos, Reflections & More!
- Page 2 and 3: CONTENTS 3 4 12 26 28 36 45 Letter
- Page 4 and 5: A Company Is Born The story behind
- Page 6 and 7: January 2, 1980: Valero executives
- Page 8 and 9: The centerpiece of the “Refinery
- Page 10 and 11: Tough Times Build A Stronger Future
- Page 12 and 13: Strategy for success Change is the
- Page 14 and 15: With that, the crucial search for t
- Page 16 and 17: On May 15, 2000, Valero closed on t
- Page 18 and 19: As a former UDS executive, Valero C
- Page 20 and 21: of 790,000 BPD more throughput capa
- Page 22 and 23: commitments to safety, stakeholders
- Page 24 and 25: at the end of 2009. As Valero revie
- Page 26 and 27: 2010 VALERO MAP of OPERATIONS RETAI
- Page 28 and 29: The heartbeat of valero There’s n
- Page 30 and 31: to coordinate the tournament itself
- Page 32 and 33: 500, the company ranked No. 15 in t
- Page 34 and 35: Hours after Hurricane Rita roared a
- Page 36 and 37: Safety & environmental From refiner
- Page 38 and 39: The Valero Texas City Refinery was
- Page 40 and 41: In its lifetime, Valero has investe
- Page 42 and 43: Valero Bill Greehey Refinery In its
- Page 44 and 45: 1980 Valero Energy Corporation is a
- Page 46 and 47: Valero Headquarters Acquired from U
- Page 48 and 49: Ardmore Refinery Joined Valero in 2
- Page 50 and 51: Benicia Refinery Joined Valero in 2
VALERO LINES<br />
EXCELLENCE<br />
REFINED<br />
INSIDE:<br />
Photos, Reflections & More!
CONTENTS<br />
3<br />
4<br />
12<br />
26<br />
28<br />
36<br />
45<br />
Letter to Employees<br />
A Company is Born<br />
Strategy for Success<br />
Map of Operations<br />
The Heartbeat of <strong>Valero</strong><br />
Safety & Environmental<br />
<strong>Valero</strong> Family Album<br />
66 Commemorations<br />
Artist renderings by Thom Ricks<br />
Every company has a starting point. Every<br />
business has a story. But some that come<br />
along plot a course like no other, setting<br />
precedents and exuding confidence where few expect<br />
success. Since 1980, <strong>Valero</strong> Energy Corporation has<br />
exemplified that rare breed. A business that chose to rise<br />
from terrible odds. A family of employees who agreed<br />
to “hang in there” when times were at their worst. A<br />
company that refused to follow the predictable path.<br />
<strong>Valero</strong> has traveled a different road, indeed. Thirty<br />
years later, that has made all the difference.
Heartfelt Thanks<br />
to Our Employees<br />
Welcome to a new age for <strong>Valero</strong> Energy Corporation.<br />
This year, our company is <strong>30</strong> years old. Many bright<br />
minds have walked our halls, plants, terminals, pipelines<br />
and retail stores, and each one has shaped <strong>Valero</strong> into<br />
the leader it is today. For that, I thank everyone who has<br />
shared in the life of our terrific company.<br />
In <strong>Valero</strong>’s first year, gasoline sold for $1.25 a gallon,<br />
Jimmy Carter was president and Americans were<br />
celebrating the dawn of a new, ambitious decade.<br />
But as <strong>Valero</strong> veterans remember, gasoline was far<br />
from the company radar screen in 1980. Natural<br />
gas transportation was its business, and <strong>Valero</strong> was<br />
hard-pressed in those years to deliver on contracts<br />
and offer significant community support in its new<br />
headquarters city of San Antonio. What transpired<br />
from then to now is one of the energy industry’s most<br />
remarkable journeys, from court settlements and near<br />
bankruptcy to acquisitions and <strong>Valero</strong>’s arrival as one<br />
of North America’s largest independent refiners. Those<br />
of you who joined the company in the mid-1990s will<br />
remember a meteoric rise from 1997 to 2005, thanks to<br />
acquisitions that turned us into a global refining leader.<br />
Like any growing business, there were bumps along with<br />
way. But there are also lessons we can all take from these<br />
times – about the importance of hard work, the cyclical<br />
nature of the energy business and the power that exists<br />
in people to change their communities for the better.<br />
Like me, many of you joined <strong>Valero</strong> at different stages<br />
in the company’s growth. From Ultramar Diamond<br />
Shamrock and Basis to Exxon, Premcor and other<br />
acquisitions, the companies and operations in our past<br />
have shaped what <strong>Valero</strong> is today. For the past <strong>30</strong> years,<br />
the commitment and expertise of our people have helped<br />
us prosper. With your help, the story of the next <strong>30</strong> years<br />
will be even better.<br />
For most of <strong>Valero</strong>’s life, our leader was Bill Greehey. Bill<br />
has shaped our company and provided the leadership<br />
and insight that made us so successful. He and other<br />
members of the company leadership have our thanks.<br />
I hope you enjoy this edition of <strong>Valero</strong> Lines, a compilation<br />
of historical highlights from our past and hope for a<br />
bright future. On behalf of the entire leadership team,<br />
Happy Birthday <strong>Valero</strong>, and thanks for being a key part<br />
of our success.<br />
CEO, President & Chairman<br />
<strong>Valero</strong> Energy Corporation
A Company<br />
Is Born<br />
The story behind <strong>Valero</strong> is one unequaled in<br />
corporate America. Named for the Mission<br />
San Antonio de <strong>Valero</strong> – the original name<br />
of the Alamo – <strong>Valero</strong> Energy Corporation<br />
was created on January 1, 1980, as the corporate<br />
successor to LoVaca Gathering Company, a subsidiary of<br />
the Coastal States Gas Corporation. <strong>Valero</strong> is the direct<br />
result of a settlement approved unanimously in 1978 by<br />
the Texas Railroad Commission, the state’s natural gas<br />
regulatory agency, which ended more than six years of<br />
litigation brought against Coastal by its municipal gas<br />
customers who claimed they had been overcharged for<br />
natural gas. Virtually the entire state was affected, directly<br />
or indirectly, by LoVaca’s situation, which became one of<br />
the major political controversies in Texas history.<br />
In July 1973, the Texas Railroad Commission and state<br />
Attorney General John Hill agreed to put LoVaca under<br />
independent management. LoVaca’s board of directors<br />
resigned, and the 200th District Court in Austin installed<br />
a five-member board that was allowed to choose a<br />
new leader for the embattled company. In 1974, the<br />
independent board offered the LoVaca presidency to<br />
William E. Greehey, Coastal’s young Senior Vice President<br />
of Finance, and charged him with negotiating a settlement.<br />
He accepted, and immediately began discussions with<br />
the cities and townships that did business with LoVaca<br />
to try to reach a settlement on the existing contracts. In<br />
all, nearly 400 customers were involved in the process. By<br />
the time resolution was found in July 1978, six years and<br />
hundreds of hours of negotiation had passed.<br />
“It was a long, laborious process,” said Stan McLelland,<br />
who at the time represented customers’ interests as<br />
a 28-year-old attorney with Austin-based Baker &<br />
Botts. “Ultimately, what helped the settlement along<br />
was customers’ realization that if they pursued their<br />
individual lawsuits, it would result in bankruptcy for<br />
LoVaca and they wouldn’t get anything anyway. Some<br />
(customers) had to be dragged kicking and screaming to<br />
the settlement table, but eventually, they all realized it<br />
was the right decision.” McLelland went on to work at<br />
4
JULY 28, 1978: Reporters question Bill<br />
Greehey moments after the Texas Railroad<br />
Commission agreed to a settlement for LoVaca<br />
customers affected by the Texas gas crisis.<br />
the very company he helped create, serving as <strong>Valero</strong>’s<br />
longtime General Counsel.<br />
As a result of the $1.6 billion settlement, Coastal’s<br />
assets, worth $700 million – including an intrastate,<br />
5,200-mile gas-gathering pipeline – were spun off into<br />
the new company, <strong>Valero</strong> Energy Corporation. LoVaca<br />
customers received 13 percent of <strong>Valero</strong>’s common stock<br />
and $115 million in preferred stock. At the time, it was<br />
the largest corporate spin-off in U.S. history. Former<br />
<strong>Valero</strong> President Palmer Moe believes the settlement that<br />
created <strong>Valero</strong> had benefits even beyond the obvious<br />
for customers. “One benefit that was given little value<br />
at the time was the requirement that <strong>Valero</strong> be located<br />
in either San Antonio or Corpus Christi,” Moe said in<br />
2005. “I think it was the most valuable benefit of all,<br />
as <strong>Valero</strong> has become a leading corporate citizen, and<br />
its employees have made tremendous volunteer and<br />
financial contributions to the community.”<br />
<strong>Valero</strong> did, indeed, move its headquarters from Houston<br />
to San Antonio – even before the ink had dried on the<br />
settlement itself. Not only was San Antonio the company’s<br />
single-largest gas customer, it was the last holdout among<br />
customers considering the state-supported settlement.<br />
San Antonio’s 200-mile distance from Houston also<br />
gave <strong>Valero</strong> much-needed separation from its embattled<br />
former corporate parent, Coastal. <strong>Valero</strong> would begin<br />
life under new skies and new optimism.<br />
On January 2, 1980, a ceremony initiated trading of<br />
<strong>Valero</strong> Energy common stock on the New York Stock<br />
Exchange under the symbol VLO. Before trading opened<br />
to the public, <strong>Valero</strong> stock was selling for $5 a share. On<br />
day one, <strong>Valero</strong> saw its first public share sell for $12.50<br />
– more than doubling in value overnight. <strong>Valero</strong> had<br />
officially arrived with $1.3 billion in revenue, $649 million<br />
in assets, 1,318 employees, and one goal: Grow.<br />
This new company<br />
represented a fresh start.<br />
——<br />
Lila Cockrell, San Antonio Mayor at settlement time<br />
5
January 2, 1980: <strong>Valero</strong> executives gather at the New York Stock Exchange on the day the company went public.<br />
Energy for the 1980s<br />
On January 2, 1980, more than 22 million shares held by<br />
approximately 20,000 shareholders began trading on the<br />
New York Stock Exchange. A ceremony welcomed <strong>Valero</strong><br />
to the Big Board; cameras flashed and executives shook<br />
hands. But back home in Texas, hard feelings among<br />
customers and communities remained, particularly in<br />
San Antonio. <strong>Valero</strong> officials answered icy receptions<br />
with only more determination, quickly immersing<br />
themselves in civic projects and community boards.<br />
Most importantly, they committed to proving five things<br />
that <strong>Valero</strong> would do: give employees the opportunity to<br />
have satisfying and rewarding careers; provide customers<br />
with a stable supply of natural gas at competitive prices;<br />
offer stockholders a competitive return; give producers a<br />
strong and reliable market for their gas; and, be a valued<br />
and contributing part of the community.<br />
For <strong>Valero</strong> to achieve everything it promised, its portfolio<br />
had to involve more than heavily regulated natural gas.<br />
The company had to find a way to grow its non-regulated<br />
business ventures in order to balance its income. The<br />
answer: natural gas liquids. It was a risky decision –<br />
chosen, studied and dissected before the company was<br />
even created – but executives felt certain that natural gas<br />
liquids (NGL) production was profitable and worthy of<br />
investment. In its first year, <strong>Valero</strong> spent more than $100<br />
million building natural gas processing plants and natural<br />
gas liquids pipelines to move the NGL’s to market. It added<br />
gas storage facilities, spent approximately $14 million to<br />
expand NGL production capacity and spent $4 million to<br />
launch its exploration and production operation. <strong>Valero</strong><br />
developed the largest intrastate pipeline system in Texas,<br />
with approximately 7,500 miles of transmission lines and<br />
assets worth approximately $700 million. It negotiated<br />
the right to charge customers 10 cents per million cubic<br />
feet (mmcf) over the cost of natural gas in the first year,<br />
and 15 cents over cost in year two. In a year’s time, the<br />
growth strategy had started to work. <strong>Valero</strong> had become<br />
Texas’ largest intrastate pipeline operator and the<br />
nation’s sixth-largest producer of natural gas liquids.<br />
A Company Is Born<br />
6
Longtime <strong>Valero</strong> refinery executive John Hohnholt (center)<br />
gives an early tour of <strong>Valero</strong>’s “Refinery of the Future” to<br />
Corpus Christi Mayor Luther Jones (right).<br />
The Corpus Christi Refinery would not be named Saber for long. <strong>Valero</strong> bought Saber’s 50 percent ownership in 1984.<br />
The company’s early diversification efforts resulted in<br />
an increase of total NGL production to more than 1<br />
million gallons per day (20,000 BPD), plus investments<br />
in an oilfield supply company, a coal company and other<br />
areas in the energy sector. Even in 1981, <strong>Valero</strong> continued<br />
growing, expanding its oil exploration and production<br />
operation, opening offices in Midland, Houston, Denver<br />
and New Orleans. But a recession and a volatile energy<br />
industry soon put the company in a new direction.<br />
Demand decreased and the market was flooded with<br />
oil. Consequently, the price of oil plummeted – from<br />
more than $<strong>30</strong> a barrel to barely $9 in 1986. With the<br />
downturn, <strong>Valero</strong> began phasing out its exploration and<br />
production interests. Few observers realized it, but a new<br />
course was starting to take shape.<br />
Refinery of the Future<br />
In 1981, <strong>Valero</strong> made a fateful, if not surprising, decision<br />
to purchase an interest in a small refining company in<br />
Corpus Christi, Texas. The $51 million purchase of 50<br />
percent ownership in Saber Energy was <strong>Valero</strong>’s most<br />
significant growth initiative to date, giving access to a<br />
modest crude unit and vacuum unit that would pave the<br />
way for future growth in an untapped and undervalued<br />
industry.<br />
The Saber operation was a simple, moderately profitable<br />
configuration for a refinery. But its position on the Corpus<br />
Christi ship channel made the venture attractive – an ideal<br />
site to build a world-scale facility. In the years leading up<br />
to <strong>Valero</strong>’s purchase, Saber employees had watched their<br />
company struggle financially and grow hungry for a cash<br />
infusion after federal regulators decontrolled the market<br />
and placed small refiners at a competitive disadvantage.<br />
<strong>Valero</strong>, with better financial footing, seemed just what<br />
the doctor ordered.<br />
Outside the walls of <strong>Valero</strong>, however, analysts and<br />
investors were increasingly critical of ambitious plans<br />
for the site. Taking a modest refinery to a full-scale,<br />
7 <strong>Valero</strong> Lines 3oth anniversary edition
The centerpiece of the “Refinery<br />
of the Future” would be the<br />
Heavy Oil Cracker, cutting edge<br />
technology in the early 1980s.<br />
state-of-the-art operation was no small task, and an<br />
uncertain economy was no help. But <strong>Valero</strong> forged<br />
ahead with a 33-month, $535 million construction plan<br />
to build the “Refinery of the Future.” The plant’s new<br />
heavy oil cracker, with the ability to convert high-sulfur<br />
residual oil (resid) into premium products, would add<br />
an important element to <strong>Valero</strong>’s plan to diversify. As<br />
one Saber executive put it at the time: “Everything is<br />
mammoth in this refinery.”<br />
<strong>Valero</strong> set out to build a world-class plant that would<br />
be unique in two respects – the production of 100<br />
percent unleaded gasoline, and the processing of resid<br />
rather than conventional sweet crude. By taking on<br />
the most difficult-to-process feedstock – which sold<br />
at a significant discount to light sweet crude – the<br />
company could achieve higher refining margins than a<br />
conventional refiner. At the time of construction, the<br />
refinery’s heavy oil cracker was one of only three such<br />
units in the world. Beyond its sparkling new assets,<br />
<strong>Valero</strong>’s first refinery also gained prominence for<br />
environmental excellence and energy efficiency – two<br />
priorities still at the heart of the company’s operation.<br />
Longtime Gulf Oil executive Martin Zanotti joined the<br />
<strong>Valero</strong> team to help free the refinery from management<br />
problems and operational snags. Zanotti ultimately was<br />
named Executive Vice President of <strong>Valero</strong> Refining and<br />
Marketing Company. Upon his retirement from <strong>Valero</strong><br />
in 1995, Zanotti reminisced about the challenges for<br />
<strong>Valero</strong> in its early days. With the expertise of engineers<br />
such as John Hohnholt, who went on to serve as Vice<br />
President and General Manager of the Corpus Christi<br />
Refinery and a senior corporate executive before his<br />
death in 2004, the refinery was ahead of its time in<br />
technology. But few at the plant had the expertise to<br />
make the concept work. “We put the refinery on the<br />
right road. And that took a lot of effort on everybody’s<br />
part,” Zanotti said. “<strong>Valero</strong> turned out to be even more<br />
of an exciting challenge than I had expected.”<br />
With a state-of-the-art refinery as its flagship, <strong>Valero</strong><br />
continued to field criticism for its faith in the industry.<br />
News articles and magazines portrayed a company<br />
drowning in debt, with no way to escape. “Even if <strong>Valero</strong><br />
wanted to,” one article read, “it would have a difficult<br />
A Company Is Born<br />
8
The original Saber refinery, near the site of <strong>Valero</strong>’s flagship refinery in Corpus<br />
Christi, started as nothing more than a vacuum unit and crude unit (inset).<br />
Today, the sprawling complex remains the last grassroots refinery in the<br />
United States.
Tough Times Build<br />
A Stronger Future<br />
Senior Vice President of Finance Ed Benninger (left) stands with Bill Greehey<br />
before the bulletin board of the NYSE ceremonies on March 26, 1987. <strong>Valero</strong><br />
used proceeds from the formation of a limited partnership to solidify the<br />
company’s finances.<br />
time getting rid of the debt-ridden refinery …” Naysayers<br />
in the media and elsewhere predicted that success was<br />
simply not possible, especially for a company with no<br />
refining experience. But <strong>Valero</strong> had done its homework<br />
and knew refining low-cost feedstocks was a niche market<br />
at the time that had yet to be filled. Feeling the surge of<br />
a strong environmental movement, <strong>Valero</strong>’s leaders knew<br />
unleaded gasoline and other high-grade, premium fuels<br />
were the future. Environmentalists continually urged the<br />
energy sector to stop using high-sulfur resid in industrial<br />
fuel, which would lower the feedstock cost.<br />
But for all the optimism, <strong>Valero</strong> was not immune to the<br />
realities of oil refining and its market volatility. Former<br />
<strong>Valero</strong> President Palmer Moe – who joined the company<br />
in 1983 after serving customers’ interests in the LoVaca<br />
settlement days – recalled dark times in the mid-1980s.<br />
Saber losses were soaring at $250,000 a day, and stocks<br />
were on the slide. But equally clear in Moe’s memory<br />
was the resilience of <strong>Valero</strong> employees. “The refinery was<br />
really in trouble, and the company came close to the line<br />
in terms of potential problems financially,” Moe said in<br />
2005. “I think what brought us through all of that were<br />
the people … people just worked a little harder. Everyone<br />
maintained a positive attitude. Through the very<br />
difficult times, we kept at the problems we were facing<br />
and didn’t give up.”<br />
To shore up its balance sheet, <strong>Valero</strong> formed a joint<br />
venture in February 1985 with a subsidiary of InterNorth<br />
when it sold a 50 percent interest in <strong>Valero</strong>’s West Texas<br />
pipeline for $81 million. The sale helped <strong>Valero</strong> dispose of<br />
excess capacity and reduce debt. And because InterNorth<br />
was a national pipeline company, <strong>Valero</strong> also was able<br />
to increase its revenue through the additional volumes<br />
of gas moving through the pipeline. A short time later,<br />
InterNorth acquired Houston Natural Gas and paid<br />
<strong>Valero</strong> another $23 million to leave the partnership – a<br />
Bill Greehey surveys the Corpus Christi Refinery with facility manager<br />
George Kain.<br />
The problem for most refiners, however, was the expense<br />
involved in transforming such low-grade feedstock into<br />
premium products. But <strong>Valero</strong> viewed the challenge as<br />
an opportunity and found the best experts and the best<br />
technology in the field to help the company make clean<br />
fuel products from the heaviest sour feedstock. Profits<br />
were possible, the company believed, if the equipment<br />
and climate were right. <strong>Valero</strong> wasn’t investing in the here<br />
and now; it was preparing for the future.<br />
A Company Is Born<br />
10
By the end of its first year, <strong>Valero</strong> stood solidly as Texas’ largest intrastate<br />
pipeline operator and the nation’s second-largest producer of natural gas liquids.<br />
serendipitous move, considering Houston Natural Gas’<br />
infamous future parent company: Enron Corporation.<br />
<strong>Valero</strong>’s toughest early year, arguably, was 1986, when it<br />
reported a $100 million loss. Many predicted bankruptcy<br />
for the company, but employees – as they had done in<br />
the beginning – agreed to hang in and await better<br />
times. Ever so slowly, conditions improved – starting that<br />
same year, in fact, with <strong>Valero</strong>’s arrival onto the coveted<br />
Fortune 500 list, based on its 1985 performance. Tough<br />
economic times only made <strong>Valero</strong> stronger.<br />
The company has always had the<br />
ability to be flexible. And we are not<br />
overburdened with huge bureaucracy.<br />
That, coupled with the <strong>Valero</strong> spirit,<br />
is what brings about success.<br />
——<br />
Ruben Escobedo, longtime <strong>Valero</strong> board member<br />
<strong>Valero</strong>’s debt-reduction course culminated in 1986, when,<br />
in December of that year, the company initiated plans<br />
to place its natural gas pipeline and liquids assets into<br />
a limited partnership. A <strong>Valero</strong> subsidiary would be the<br />
general partner and own a 49 percent interest. This was<br />
the most complicated financial step taken in the history<br />
of the company, but it was one virtually everyone believed<br />
single-handedly saved the company.<br />
At the time, no one in the investment community believed<br />
the limited partnership could be formed in less than six<br />
months. But within the company, employees realized this<br />
move had to be made by the end of the first quarter of<br />
1987 to alleviate debt problems. Many worked around<br />
the clock, seven days a week, to achieve the seemingly<br />
impossible goal. As a result of everyone’s efforts, on<br />
March 27, 1987, <strong>Valero</strong> Natural Gas Partners, L.P. was<br />
formed as a publicly traded partnership on the New York<br />
Stock Exchange under the symbol VLP. “We all worked<br />
long days, but the key was working together as a team,”<br />
said Ed Benninger, <strong>Valero</strong>’s Chief Financial Officer at the<br />
time. “Everyone had a role to play and a contribution to<br />
make. Whether you were a secretary or a vice president,<br />
each was significant.” Because of the strong market<br />
for natural gas and NGLs at the time, <strong>Valero</strong> was able<br />
to maximize the value of those assets. As a result, the<br />
company raised more than $740 million from the net<br />
proceeds of the spin-off, and reduced its debt-tocapitalization<br />
ratio from approximately 70 percent to<br />
<strong>30</strong> percent. In a 1990 tribute to <strong>Valero</strong>’s first decade,<br />
Benninger said the entire L.P. effort was something to<br />
behold. “The formation of <strong>Valero</strong> Natural Gas Partners,<br />
L.P., is a tribute to the quality and the character of the<br />
people we have at <strong>Valero</strong>,” Benninger said. “It wasn’t<br />
any one person who accomplished the formation of the<br />
partnership; it took the effort of more than 100 people.”<br />
Six years after the limited partnership began, <strong>Valero</strong><br />
solidified its finances and bought back the outstanding<br />
shares. The company, committed to being a leader<br />
in the energy industry, had survived its first 10 years.<br />
“If you believed what you read in the papers, we were<br />
going to go bankrupt,” Greehey said in 1990. “But we<br />
knew we weren’t. That was the difference.” By 1997, an<br />
unprecedented wave of growth stood poised to begin.<br />
We will build on our strengths. Our<br />
momentum is only the beginning.<br />
——<br />
1997 Annual Report<br />
11 <strong>Valero</strong> Lines 3oth anniversary edition
Strategy<br />
for success<br />
Change is the law of life,” President John F.<br />
Kennedy once wrote. “And those who look<br />
only to the past or present are certain to miss the<br />
future.” It’s a fitting phrase for <strong>Valero</strong> in<br />
the 1990s. The company had emerged from the 1980s<br />
a little battle-weary from a decade of ups and downs.<br />
But <strong>Valero</strong> refused to dwell on its past or settle for the<br />
present. The future was calling.<br />
Growth in the 90s and Beyond<br />
Against the backdrop of the Gulf War, the early 1990s<br />
were years of progression and change for <strong>Valero</strong>.<br />
In addition to enhancing its Corpus Christi refining<br />
operations, <strong>Valero</strong> began to cast its gaze internationally.<br />
A celebration in November 1992 marked <strong>Valero</strong>’s first<br />
big step toward a global operation. <strong>Valero</strong> Natural Gas<br />
Partners, L.P., and Petroleos Mexicanos commemorated<br />
the completion of a $4 million pipeline to Mexico, one of<br />
only five connecting the United States with the emerging<br />
natural gas market. The pipeline, which connected<br />
<strong>Valero</strong>’s network to Mexico’s state-owned system, began<br />
operations in August with about 125 million cubic feet<br />
of gas per day moving through the 3.5-mile connection.<br />
The project took nearly three years to plan and five weeks<br />
to build.<br />
With the energy industry rapidly consolidating in the mid-<br />
1990s, <strong>Valero</strong> management realized that restructuring<br />
– again – was best to position the company for future<br />
growth and to unlock shareholder value. After 22 years<br />
at the helm, Greehey announced he would retire from<br />
daily life at <strong>Valero</strong> and turn over CEO duties to <strong>Valero</strong><br />
executive Joe Becraft in July 1996. Becraft had served as<br />
both executive vice president and president and CEO of<br />
the <strong>Valero</strong>’s natural gas and natural gas liquids division<br />
since May 1995. Greehey agreed to stay on as Chairman<br />
but left day-to-day decisions with Becraft. “After 22<br />
challenging and rewarding years as CEO, the time is right<br />
to turn the company over to new leadership,” Greehey told<br />
the media in February 1996. “The company is in better<br />
12
shape financially and operationally than ever before, and<br />
we are well-positioned to continue that growth. I believe<br />
Joe is the perfect person to lead <strong>Valero</strong> into the future.”<br />
At the time, natural gas company stocks were selling at<br />
a premium, while refiner stocks were stuck at a discount.<br />
Although half of the company’s assets were in natural<br />
gas, <strong>Valero</strong> was among those being traded as a refining<br />
stock. That meant shareholders weren’t getting the<br />
full value of <strong>Valero</strong>’s business. The industry was at the<br />
bottom of its cycle, putting refining assets on the market<br />
at deep discount. The worldwide movement to cleaner<br />
fuels would eventually tighten refined product supplies –<br />
making refineries more valuable and their products more<br />
profitable. “We absolutely made the right call at the right<br />
time,” said Executive Vice President and Chief Financial<br />
Officer Mike Ciskowski, a 25-year veteran of <strong>Valero</strong>. “A lot<br />
of people thought we were crazy because we were coming<br />
out of a pretty low-margin environment.”<br />
<strong>Valero</strong> decided to sell its natural gas business and pursue<br />
refining. This change in direction — away from natural gas<br />
and into refining — resulted in Greehey’s sudden return<br />
to the CEO post after just four months in retirement.<br />
Becraft resigned in November 1996, saying the refining<br />
strategy may be in the best interest of the company, but<br />
it did not align with his own expertise in the natural gas<br />
field. Fellow board member at the time, Bob Dettmer,<br />
praised his colleague for his leadership and dedication.<br />
“The board and management of <strong>Valero</strong> commend Joe<br />
Becraft for his contributions,” Dettmer said in 1996.<br />
“The various initiatives undertaken over the past few<br />
years – our expanded gas marketing presence, power<br />
marketing, natural gas liquids marketing and now retail<br />
gas marketing – have all come under Joe’s direction. He<br />
showed a lot of loyalty to the company by recommending<br />
the best course of action for <strong>Valero</strong>’s future – without<br />
regard to his personal interests. We respect his decision.”<br />
After months of preparation and hours of effort<br />
from all areas of the company, <strong>Valero</strong> officials<br />
Ed Benninger, Jay Browning, Danny Gibbons<br />
and Rand Schmidt sign a seemingly endless row<br />
of documents in July 1997 to complete the spinmerger<br />
with PG&E.<br />
13<br />
<strong>Valero</strong> Lines 3oth anniversary edition
With that, the crucial search for the perfect natural gas<br />
partner heated up. And by January 1997, a $1.5 billion<br />
agreement hit the headlines. <strong>Valero</strong> would merge its<br />
natural gas services business with San Francisco-based<br />
PG&E Corporation and spin off the company’s refining<br />
and marketing operations as a new independent company<br />
that retained the <strong>Valero</strong> name. The company believed the<br />
timing was perfect for the spin-merger, and the action<br />
doubled shareholder value. “We got out (of the natural<br />
gas business) at exactly the right time, and for top dollar,”<br />
said Stan McLelland, former General Counsel for <strong>Valero</strong>.<br />
“With that, it gave us capital and ability to pay down<br />
debt and go out and acquire other refineries.” But <strong>Valero</strong><br />
still faced skeptics, who saw <strong>Valero</strong> essentially selling its<br />
more established and profitable business to focus on an<br />
uncertain future in refining.<br />
The company had but a single, 170,000 BPD refinery<br />
in Corpus Christi when the PG&E spin-merger was<br />
announced. On paper, however, <strong>Valero</strong> envisioned for<br />
itself a nationwide network of refineries with a combined<br />
2 million BPD of refining capacity. Within five years. To<br />
achieve this, <strong>Valero</strong> would not accept just any refinery.<br />
Rather, it focused on operations that met four key criteria:<br />
the ability to process more than 100,000 BPD of sour<br />
crude; upgrade capability, with the ability to increase<br />
capacity and yields; access to water; and the ability to<br />
immediately contribute to earnings.<br />
Before the PG&E ink had dried (PG&E closed July 31,<br />
1997), <strong>Valero</strong> reached an agreement to purchase three<br />
refineries by acquiring Basis Petroleum Inc., a subsidiary<br />
of New-York-based Salomon Inc., an investment firm.<br />
The Basis refineries, located in Texas (Houston, Texas<br />
City) and Louisiana (Krotz Springs) were purchased at 10<br />
cents on the dollar of replacement cost. <strong>Valero</strong>’s refining<br />
capacity nearly tripled to more than 500,000 barrels per<br />
day, making it the fourth largest independent refiner in<br />
the nation. The $485 million acquisition took <strong>Valero</strong> to<br />
a new level in size and scope. “We told people that yes,<br />
refining was at the bottom of the cycle, but that created<br />
a great opportunity for us to acquire assets at good<br />
values,” said Keith Booke, former Chief Administrative<br />
Officer for <strong>Valero</strong> (1996 to 2006). “We saw demand for<br />
refined products growing … Did the rest of the market<br />
believe it? Absolutely not.”<br />
The former Basis plants represented both a tremendous<br />
value and a tremendous challenge. Maintenance and<br />
reliability issues required attention from day one, as<br />
did employees who were looking for a reason to trust<br />
<strong>Valero</strong> at the time. So, company officials took time<br />
to explain the new culture and plans for the future, to<br />
assure employees that brighter days were ahead, and to<br />
address questions and concerns. <strong>Valero</strong> created volunteer<br />
councils, launched spirited United Way campaigns and<br />
other activities, and met their new communities with<br />
Houston<br />
Texas City<br />
Strategy for Success<br />
14
outreach projects and enthusiasm. The effort paid off<br />
as the newly owned refineries began to grow their own<br />
presence. <strong>Valero</strong>’s efforts to quickly improve efficiencies<br />
and reduce expenses made the refineries profitable for<br />
the first time in many years. Although <strong>Valero</strong> owned<br />
the plants for just six months in 1997, they contributed<br />
$84 million to the company’s operating earnings.<br />
It was the dawn of a new era. As a result of the natural<br />
gas spin-off and restructuring, 1997 was – to that point –<br />
the company’s most rewarding and most profitable year<br />
in its history.<br />
More than refining. Redefining.<br />
——<br />
<strong>Valero</strong> Energy Annual Report, 1998<br />
In September 1998, <strong>Valero</strong> aggressively secured a<br />
foothold in the Northeast to become the secondlargest<br />
independent refining company in the nation.<br />
Its fifth refinery purchase – Mobil’s 155,000 BPD<br />
plant in Paulsboro, N.J. – cost $228 million plus<br />
$108 million for inventories and working capital. With<br />
Paulsboro, <strong>Valero</strong>’s refining capacity increased by another<br />
25 percent, giving the company a formidable throughput<br />
capacity of 735,000 BPD barely a year into its acquisition<br />
mode. In addition, the refinery diversified the company’s<br />
product slate as one of the top-performing lube plants<br />
in North America at the time. Like the Basis acquisition,<br />
however, there was good reason for the steep discount.<br />
The 80-year-old refinery was in disrepair, and many<br />
operating units were abandoned or rusting away. Within<br />
weeks of purchase, the refinery’s makeover began, and<br />
<strong>Valero</strong> Pride officially arrived in the Northeast. Paulsboro<br />
represented <strong>Valero</strong>’s first transaction with one of the<br />
world’s “major” oil companies and bolstered its presence<br />
in the U.S. refining business.<br />
acquisition didn’t just give <strong>Valero</strong> access to the West<br />
Coast market, it put the company on the industry map.<br />
It was a bittersweet transaction for Exxon, however,<br />
whose complex Benicia operation was (and continues<br />
to be) one of the most profitable in the nation. But in<br />
order for Exxon to complete its merger with Mobil at the<br />
time, the Federal Trade Commission insisted the asset<br />
be sold. “This was Exxon’s most profitable refinery, and<br />
they would never have sold it if the FTC had not required<br />
it,” said Rich Marcogliese, former plant manager of the<br />
Benicia Refinery and current Executive Vice President and<br />
Chief Operating Officer. “It’s hard to imagine a better<br />
strategic investment for <strong>Valero</strong> and its shareholders.”<br />
Before <strong>Valero</strong> could do all that it envisioned, however,<br />
it first had to finalize the acquisition with Exxon. The<br />
bidding process was hard-fought between <strong>Valero</strong> and its<br />
competitors. But Exxon officials made it clear that the<br />
Paulsboro<br />
California Shines on <strong>Valero</strong><br />
Considered one of the most important strategic<br />
acquisitions in <strong>Valero</strong>’s history, the company in 2000<br />
acquired Exxon’s 165,000 BPD refinery in Benicia, Calif.,<br />
a small community northeast of San Francisco. The<br />
In 1998, <strong>Valero</strong> purchased Mobil’s refinery in Paulsboro, New Jersey, giving<br />
the company geographic diversity like never before. <strong>Valero</strong> became the nation’s<br />
second-largest independent refining company, with a throughput capacity of<br />
735,000 BPD.<br />
15 <strong>Valero</strong> Lines 3oth anniversary edition
On May 15, 2000, <strong>Valero</strong><br />
closed on the purchase of<br />
ExxonMobil Corporation’s<br />
prized refinery in the hills<br />
of Benicia, California. The<br />
acquisition not only ushered<br />
<strong>Valero</strong> into the retail<br />
market, it gave the company<br />
unprecedented power – the<br />
leverage it needed to enter the<br />
“big leagues” of refining.<br />
refinery would be sold to the company with the best bid,<br />
not necessarily the highest bid. The refinery would go to<br />
whichever company could promise the best future for the<br />
refinery, its employees and community, and satisfy both<br />
the Federal Trade Commission and the California Attorney<br />
General’s Office. In letters, phone calls and face-to-face<br />
visits, <strong>Valero</strong> committed to taking care of all aspects<br />
of the operation. That was all Exxon needed to know.<br />
It accepted <strong>Valero</strong>’s final bid at $895 million. “We are<br />
pleased to have completed this agreement with <strong>Valero</strong>,”<br />
Exxon senior vice president Gene Renna told the media in<br />
May 2000. “<strong>Valero</strong> has a strong refining record, offered<br />
comparable pay, benefits, and employment opportunities<br />
to our employees, has a history of community involvement<br />
and will be an effective retail marketer.” By summer, the<br />
gold-and-green stacks of Benicia – painted to match the<br />
rolling hills around it – were solidly part of the <strong>Valero</strong><br />
family. Its first retail brand, meanwhile, greeted consumers<br />
with the look of a major brand store with the value of an<br />
independent.<br />
A Flagship Refinery Grows<br />
In some ways, <strong>Valero</strong>’s $110 million acquisition of El<br />
Paso Corporation’s Corpus Christi refinery and logistics<br />
assets in 2001 took <strong>Valero</strong> back to its roots. The facilities<br />
had been owned and operated for 40 years by the very<br />
company from which <strong>Valero</strong> was born – Coastal – before<br />
the infamous company and its assets were bought by El<br />
Paso. The 115,000 BPD refinery, located just one mile<br />
east of <strong>Valero</strong>’s first Corpus Christi refinery, was a semicomplex<br />
plant capable of processing heavy, high-sulfur<br />
crude oil – precisely <strong>Valero</strong>’s niche. The El Paso refinery<br />
came to be known as <strong>Valero</strong>’s “East Plant,” and helped<br />
create a 340,000 BPD refining complex on the shores<br />
of the Corpus Christi ship channel. The new employees<br />
there – like at other previously acquired facilities – soon<br />
began to understand the impact of <strong>Valero</strong>’s ownership.<br />
The acquisition also marked <strong>Valero</strong>’s entry into refined<br />
product pipeline operations with El Paso’s three<br />
intrastate pipelines and terminals, and allowed <strong>Valero</strong> to<br />
ship its refined products from Corpus Christi to markets<br />
in Houston, Victoria, San Antonio and the Rio Grande<br />
Valley. Within one year of purchase, <strong>Valero</strong>’s investment<br />
had paid out.<br />
Strategy for Success<br />
16
Barely a month later, <strong>Valero</strong> became one of the top five<br />
asphalt producers in the nation. Its purchase of Huntway<br />
Refining Company – with two asphalt refineries in<br />
California – ushered <strong>Valero</strong> into the West Coast asphalt<br />
market. “If there’s an ‘A list’ for asphalt refineries, these<br />
facilities and their employees are on it,” said Gary Arthur,<br />
former manager of specialty products marketing and<br />
current President of <strong>Valero</strong> Retail. “This acquisition was<br />
a stepping stone to producing higher-quality asphalts<br />
and expanding our asphalt technical know-how.” No<br />
truer words were spoken. All of <strong>Valero</strong>’s past acquisitions<br />
were stepping stones to greater achievements. Investors<br />
and employees were about to see them all unfold.<br />
Welcome to ‘the new <strong>Valero</strong>.’<br />
——<br />
Headline, 2002 Special <strong>Valero</strong> Lines<br />
In May 2001, <strong>Valero</strong> made its largest acquisition to that<br />
point – the $6 billion purchase of San Antonio-based<br />
competitor Ultramar Diamond Shamrock Corp (UDS).<br />
What started as casual conversations became one of<br />
the fastest-moving mergers in business history. The<br />
companies announced to the world that <strong>Valero</strong> – the<br />
smaller of the two companies – would more than double<br />
in size by acquiring UDS. The transaction turned <strong>Valero</strong><br />
into the second-largest independent refiner in the nation,<br />
with 13 refineries, a throughput capacity of approximately<br />
2 million BPD, and more than 20,000 employees in the<br />
United States and Canada. A retail network and an<br />
interest in a pipelines and terminals partnership also was<br />
part of the deal. In just seven months, <strong>Valero</strong> closed with<br />
UDS and celebrated the fulfillment of its five-year goal, to<br />
process 2 million BPD, well ahead of schedule.<br />
At the center of the UDS empire were six refineries<br />
– Ardmore, Okla., Wilmington, Calif., Denver, Colo.<br />
(sold to Suncor Energy for $<strong>30</strong> million in June 2005),<br />
McKee and Three Rivers, Texas, and Quebec, Canada. A<br />
seventh refinery – the Golden Eagle Refinery in Northern<br />
California – was sold along with 70 retail sites to Tesoro<br />
Petroleum in 2002 for $1.075 billion to satisfy Federal<br />
Trade Commission requirements. What remained for<br />
<strong>Valero</strong> was a refining powerhouse, one of the nation’s<br />
largest retail operations with approximately 5,000 retail<br />
outlets in the U.S. and Canada, and a stake in a midstream<br />
business called Shamrock Logistics L.P., later<br />
renamed <strong>Valero</strong> L.P. *<br />
<strong>Valero</strong>’s 2001 acquisition of El Paso Corporation’s Corpus Christi refinery and logistics assets (far left) helped create a 340,000 BPD refining empire on the shores of<br />
the Corpus Christi Ship Channel. Not a month later, <strong>Valero</strong> claimed new bragging rights as one of the top five asphalt producers in the nation with the purchase of two<br />
asphalt refineries in California (middle, right).<br />
17 <strong>Valero</strong> Lines 3oth anniversary edition
As a former UDS executive, <strong>Valero</strong> CEO Bill Klesse still<br />
recalls the diversity and sheer size of the acquisition<br />
in 2001. “The UDS deal gave <strong>Valero</strong> the size it needed<br />
to take on more risk going forward,” said Klesse,<br />
who became CEO in 2006. “It gave <strong>Valero</strong> a lot more<br />
mass, and with that, the ability and the opportunity<br />
to invest in places like St. Charles and Aruba.”<br />
The deal also gave <strong>Valero</strong> entry into sweet crude<br />
refining, and into new business territories in Canada.<br />
With the close of 2001, <strong>Valero</strong> was indeed a whole new<br />
company. Purpose-driven growth was its guidepost, now<br />
even more attainable with the financial stability created<br />
by UDS. The addition meant even more employees<br />
and instant ownership of 1,000 retail stores and 3,000<br />
branded outlets. Through it all, <strong>Valero</strong> continued to<br />
focus on sour crude refining and capture the benefits of<br />
diversification. While the refineries would provide synergy<br />
and bigger geographic punch to <strong>Valero</strong>’s presence in<br />
North America, the new retail arm gave the company<br />
something refining could not: a face to the general public.<br />
UDS’ Diamond Shamrock brand had been around since<br />
the 1970s and was a fixture in certain parts of the country<br />
– particularly its headquarters state of Texas. Before that,<br />
Ultramar stores in Eastern Canada had been in operation<br />
since the 1960s. And even earlier, Diamond Shamrock’s<br />
predecessors, including the original Shamrock brand,<br />
had operated successfully since the 19<strong>30</strong>s. The entire<br />
system had been supported by the UDS Credit Service<br />
Center in Amarillo, Texas, which to this day serves credit<br />
card customers each year. By 2002, <strong>Valero</strong> had improved<br />
the profitability of its retail division by investing in topperforming<br />
sites, including remodeling or even rebuilding<br />
stores, acquiring new sites and closing marginal sites.<br />
As a side venture, <strong>Valero</strong> also began to grow a branded<br />
wholesale business that began with the Exxon purchase<br />
in 2000 but grew with the UDS acquisition in 2001. In the<br />
wholesale market, <strong>Valero</strong> could build brand recognition<br />
and customer loyalty through independent operations,<br />
without the high cost of operating and staffing its own<br />
stores. These “jobbers,” as they are known, offered <strong>Valero</strong><br />
credit cards and had access to advertising and promotions<br />
but were independently owned and operated. In August<br />
2006, <strong>Valero</strong> announced an 11-year agreement with<br />
Susser Petroleum – the largest single-branded wholesale<br />
deal in <strong>Valero</strong> history in fuel volumes and number of<br />
sites – to supply fuel and brand programs to more than<br />
<strong>30</strong>0 of Susser’s network of 324 retail stores in Texas and<br />
Oklahoma. <strong>Valero</strong> also began branding selected sites<br />
from Susser’s network of 352 wholesale dealers – thus<br />
becoming Texas’ No. 1 rack fuel marketer with 1,900<br />
branded wholesale and company-owned locations, and<br />
significant unbranded sales volumes around the state.<br />
By 2007, <strong>Valero</strong> had earned Convenience Store Chain of<br />
the Year by Convenience Store Magazine and was actively<br />
looking to grow its jobber network. It was clear <strong>Valero</strong><br />
needed a strong national image to hook consumers and<br />
investors. So on June <strong>30</strong>, 2005, on the eve of one of the<br />
busiest driving holidays of the year, <strong>Valero</strong> announced<br />
its most ambitious retail plans yet – transform its entire<br />
U.S. network to the <strong>Valero</strong> brand, converting Diamond<br />
Shamrock stores to <strong>Valero</strong>’s signature teal and gold.<br />
A plot of land alongside Interstate 37 in Corpus Christi,<br />
Texas – within view of <strong>Valero</strong>’s flagship refinery – gave<br />
birth to the first company-owned, branded <strong>Valero</strong> site<br />
outside of California. By the end of 2009, the company<br />
operated 1,000 <strong>Valero</strong> Corner Stores and held contracts<br />
with more than 4,000 jobber sites. Diamond Shamrock,<br />
Shamrock and Ultramar brands still dotted the U.S.<br />
landscape as well.<br />
St. Charles:<br />
A Diamond in the Rough<br />
In May 2003, <strong>Valero</strong> announced its $500 million purchase<br />
agreement for Orion Refining Corporation’s 185,000<br />
BPD refinery in south Louisiana – roughly 20 cents on the<br />
dollar compared with replacement value. The investment<br />
community saw the refinery as a run-down plant with a<br />
host of operational issues and a parent company that<br />
was deep in bankruptcy, but some analysts saw beauty<br />
in the deal. <strong>Valero</strong>’s solid financial footing (as a result of<br />
deconsolidating <strong>Valero</strong> L.P. and <strong>Valero</strong> Energy in 2002)<br />
allowed the purchase to happen without compromising<br />
the company’s balance sheet. The facility, located 15<br />
miles west of New Orleans, had the makings of one of the<br />
Strategy for Success<br />
18
Crews make a historic sign change as <strong>Valero</strong> becomes owner of UDS and its assets – namely, six refineries and some 5,000 retail outlets in the United States and Canada.<br />
most complex refineries in the nation. By July 2003, the<br />
deal was sealed.<br />
Rich Marcogliese, then Executive Vice President of<br />
Operations and current COO, sensed a bright future for<br />
the refinery in 2001, thanks to the partnership that took<br />
place. “When you combine the skills of our experts with<br />
the skills, experience and enthusiasm of the St. Charles<br />
employees, the future for the refinery looks incredibly<br />
bright,” Marcogliese said. The future came true in record<br />
time. Profits began posting within a month of <strong>Valero</strong>’s<br />
purchase. With that success, however, came the need<br />
to comfort a community that still feared its industrial<br />
neighbor and its poor environmental history. In letters to<br />
residents in the days prior to <strong>Valero</strong>’s purchase, executives<br />
openly committed to a responsible operation and honest<br />
dialogue with refinery neighbors. “We are looking forward<br />
to working with all of you, and we’re confident that you’ll<br />
find <strong>Valero</strong> to be a good neighbor worthy of your trust<br />
and confidence,” one letter read. In the 18 months that<br />
followed, <strong>Valero</strong> reduced the refinery’s sulfur dioxide<br />
emissions from acid gas flaring by 96 percent. St. Charles<br />
went on to receive the Chairman’s Environmental Award<br />
in 2005 for its commitment to protecting its community<br />
and the Chairman’s Safety Award a year later. More<br />
importantly, residents came to support their refining<br />
neighbor and tout it as a community asset. The refinery’s<br />
environmental leadership would grow even from there,<br />
earning governor’s awards and local accolades in years<br />
to come.<br />
From Canada to the Caribbean …<br />
Nearly a year after bringing St. Charles on board, <strong>Valero</strong><br />
extended its international reach when it acquired El Paso<br />
Corporation’s 315,000 BPD refinery on the Caribbean<br />
island of Aruba. Like <strong>Valero</strong>’s other acquisitions, this<br />
refinery purchase for $365 million, plus $100 million for<br />
related marine, bunkering and marketing operations,<br />
was made for pennies on the dollar compared to<br />
replacement. The island operation fit perfectly with<br />
<strong>Valero</strong>’s acquisition strategy and gave it yet another<br />
outlet for processing heavy, sour crude. Geographic<br />
diversity also was key, but much work had to be done<br />
to integrate the plant physically and philosophically,<br />
using the company’s proven formula (management<br />
expertise, mentor-based learning and upgrades) to reach<br />
success. For their part, Aruba employees wasted no time<br />
19 <strong>Valero</strong> Lines 3oth anniversary edition
of 790,000 BPD more throughput capacity to its system<br />
(3.3 million BPD companywide).<br />
On July 14, 2005, the company found itself back at the<br />
place where it all began – the New York Stock Exchange<br />
to celebrate its 25 th Anniversary. But this time, <strong>Valero</strong> was<br />
no industry youngster on uneasy legs. <strong>Valero</strong> had become<br />
the continent’s largest independent refining company,<br />
with strategic know-how to enjoy the “Golden Age” of<br />
refining but a grounded perspective on an ever-changing<br />
marketplace.<br />
In 2003, <strong>Valero</strong> made a purchase that would single-handedly prove its ability<br />
to turn an industry poor performer into a profitable, community-focused plant.<br />
The St. Charles Refinery has become a source of pride in southern Louisiana.<br />
embracing the company’s volunteer spirit. In lieu of a<br />
United Way on the island, employees began an “Aruba<br />
Way” campaign and gave more than $292,000 (with<br />
company match) to worthy community groups on the<br />
island. In the first year alone, <strong>Valero</strong> also invested $133<br />
million in environmental improvements; committed<br />
another $900 million in capital improvements over the<br />
next five years; contributed $500,000 to needy nonprofit<br />
groups; formed a Volunteer Council that worked more<br />
than 5,000 volunteer hours in its first year; initiated a<br />
scholarship program for the children of employees; and<br />
provided enhanced benefits and employee programs to<br />
the work force.<br />
Premcor Deal Delivers<br />
In 2005, Bill Greehey made the decision to retire again<br />
as CEO but remain as company chairman. Bill Klesse<br />
assumed the post on January 1, 2006, with a challenging<br />
year ahead of him and gratitude for the work it took<br />
to get the company where it was. “All of us at <strong>Valero</strong><br />
thank Bill for his leadership and commitment to our<br />
success over the years,” Klesse wrote in his address to<br />
shareholders that year. The future was uncertain, but<br />
Klesse thanked his employees, shareholders and executive<br />
team for their faith and investment in an outstanding<br />
company. “In today’s rapidly changing world, companies<br />
need every advantage to compete and succeed,” he said<br />
in 2006. “At <strong>Valero</strong>, we have worked hard to recruit<br />
employees, develop strategies and acquire assets<br />
that … make us a world-class competitor.” While previous<br />
leadership had helped the company grow, a new CEO<br />
would help the company grow up.<br />
In celebration of <strong>Valero</strong>’s remarkable rise, then Chairman and CEO Bill Greehey<br />
rings the closing bell of the New York Stock Exchange on July 14, 2005 – 25<br />
years after launching a company that no one expected to survive.<br />
In April 2005, <strong>Valero</strong> surprised the industry and the<br />
financial world yet again when it announced its largest<br />
acquisition in company history – a $6.1 billion (plus debt<br />
assumption) purchase of Premcor Inc. The Wall Street<br />
Journal heralded the purchase in a front-page story, with<br />
the headline: “<strong>Valero</strong> Energy to Buy Premcor as Refining<br />
Sector Consolidates.” The closing date came sooner than<br />
expected: September 1, 2005. <strong>Valero</strong> welcomed four<br />
more sites to the fold – Port Arthur, Texas; Memphis,<br />
Tenn; Delaware City, Del.; and Lima, Ohio – for a total<br />
Strategy for Success<br />
20
From its early roots with Ultramar Diamond Shamrock<br />
to a national facelift in 2005, <strong>Valero</strong>’s retail brand is a<br />
shining example of how flexibility has helped boost the<br />
company’s bottom line.
commitments to safety, stakeholders, employees, the<br />
environment and the community. Its internal mission: To<br />
encourage employees to take these five essential principles<br />
and put them into practice each and every day. <strong>Valero</strong>’s<br />
Commitment to <strong>Excellence</strong> became a visual reminder of<br />
expectations at every level, and provided the framework<br />
for a new management system that emphasized safety<br />
and stability at every turn. It also fueled the company’s<br />
first-ever Social Responsibility Report, which highlighted<br />
<strong>Valero</strong>’s accomplishments and activities in health<br />
and safety, and efforts to protect the environment,<br />
communities, employees and corporate ethics. “It’s not<br />
enough for us to be a better refiner and marketer,” Klesse<br />
states in the report. “We strive to be a better employer<br />
and neighbor, too.” As a result, <strong>Valero</strong> consistently is<br />
recognized as one of the world’s most-admired energy<br />
companies, one of the best big companies to work for and<br />
one of the best corporate citizens in the energy industry.<br />
Looking Inward<br />
In 2006, <strong>Valero</strong> financial results were still strong, posting<br />
quarterly profits far and above the previous year. Third<br />
quarter 2006 operating income was $2.3 billion,<br />
compared to $1.9 billion achieved in the same period the<br />
previous year. The company returned more cash than ever<br />
to shareholders. After a decade of rapid growth through<br />
acquisitions, <strong>Valero</strong> was naturally shifting its strategy to<br />
achieve higher returns from existing assets.<br />
In 2007, <strong>Valero</strong>’s management instituted a sweeping<br />
set of guiding principles for the organization to achieve<br />
excellence in business, industry and relationships with<br />
employees and the community. <strong>Valero</strong>’s Commitment<br />
to <strong>Excellence</strong> program highlighted the company’s<br />
Unquestionably in 2007, volatility in the industry began<br />
to swell. An economic downturn challenged even<br />
the strongest of companies. But <strong>Valero</strong>’s leadership<br />
empowered employees, encouraging improvements in<br />
process safety and reliability, environmental stewardship,<br />
operational and energy efficiency and community<br />
response. <strong>Valero</strong> took home honors as Downstream<br />
Business of the Year at the 2007 Platts Global Energy<br />
Awards. The company’s employee injury rate consistently<br />
beat Bureau of Labor Statistics averages, achieving<br />
record results in 2008. Ten of <strong>Valero</strong>’s 14 U.S. refineries<br />
carried “Star Site” status, reflecting the government’s<br />
highest honors within OSHA’s Voluntary Protection<br />
Program (VPP). Refinery environmental performance<br />
vastly improved, and to date, more than $100 million in<br />
annualized savings was achieved under <strong>Valero</strong>’s energy<br />
stewardship program.<br />
The company’s Commitment to <strong>Excellence</strong> campaign was<br />
now a visible, audible call to arms for <strong>Valero</strong> employees.<br />
To be successful in the industry, employees must do<br />
their best every day, in everything they do, and show the<br />
world where the real muscle of the company lives – in<br />
its dedicated, unshakeable work force. “Our employees<br />
drive all of our initiatives, the success of our company<br />
Strategy for Success<br />
22
As a leading refiner and marketer, we are<br />
committed to following these guiding principles<br />
in pursuing and achieving excellence in our<br />
business, industry and relationships with our<br />
employees and communities.<br />
SAFETY<br />
The safety of our employees, our operations<br />
and our communities is our highest priority.<br />
<strong>Valero</strong> CEO, President and Chairman Bill Klesse (seated, front right) gathers<br />
with the company’s leadership. The <strong>Valero</strong> Management Committee includes<br />
(left to right): Mike Crownover (SVP Human Resources), Donna Titzman (VP<br />
& Treasurer), Jay Browning (SVP & Corporate Secretary), Clay Killinger (SVP &<br />
Controller), Eric Fisher (VP Investor Relations and Corporate Communications),<br />
Gary Arthur (President, Retail), Joe Gorder (EVP Marketing and Supply), Hal<br />
Zesch (SVP & CIO), Kim Bowers (EVP & General Counsel), Gene Edwards (EVP<br />
Corporate Development and Strategic Planning), Rich Marcogliese (EVP & COO)<br />
and Mike Ciskowski (EVP & CFO).<br />
and improved shareholder returns,” Klesse said in 2008.<br />
“Behind every achievement are hard-working, dedicated,<br />
smart people who drive our business and care for our<br />
communities… Our goal is to continue to foster their<br />
growth so that, together, we can realize our vision and<br />
the earnings potential of our assets.”<br />
For all of its enthusiasm and expertise, even the strongest<br />
of wills within the refining industry were challenged<br />
in 2008 and 2009. <strong>Valero</strong> had seen a challenging,<br />
180-degree shift in the refining industry. From drastic<br />
reductions in demand for refined products to the<br />
disappearance of sour crude discounts, the company<br />
required a change in direction. The best course was to<br />
evaluate the company’s assets, review operational needs<br />
and set the company on a path that could weather the<br />
difficult market conditions. That meant making tough<br />
decisions, including shedding operations that did not<br />
fit <strong>Valero</strong>’s portfolio for the future. Among them, Lima,<br />
Ohio, which sold to Husky Energy in July 2007 for<br />
$1.9 billion plus working capital; Krotz Springs, which<br />
sold to Alon Energy in July 2008 for $476 million, and<br />
Delaware City, which announced permanent closure<br />
STAKEHOLDERS<br />
We are committed to delivering long-term value<br />
to all stakeholders – our employees, investors,<br />
and customers – by pursuing profitable, valueenhancing<br />
strategies with a focus on worldclass<br />
operations.<br />
OUR EMPLOYEES<br />
Our employees are our # 1 asset and we provide<br />
a challenging, enjoyable and rewarding work<br />
environment, which fosters creative thinking,<br />
teamwork, open communication, respect, and<br />
opportunity for individual professional growth<br />
and development.<br />
THE ENVIRONMENT<br />
We are committed to producing environmentally<br />
clean products, while striving to improve and<br />
enhance the environmental quality of our<br />
operations within our local communities.<br />
OUR COMMUNITIES<br />
We are committed to taking a leadership role<br />
in the communities in which we live and work<br />
by providing company support and encouraging<br />
employee involvement.<br />
23 <strong>Valero</strong> Lines 3oth anniversary edition
at the end of 2009. As <strong>Valero</strong> reviews the strength and<br />
viability of all of its assets, difficult decisions are made<br />
to bring substantial cost savings and cash benefits to the<br />
company to ensure its success for the future.<br />
Embracing Ethanol<br />
Looking to the future, Klesse told shareholders that the<br />
company would willingly embrace the call for innovation<br />
and development of alternative fuels and other energy<br />
sources. In 2008 the strategy began with a new 50<br />
megawatt wind farm (33 turbines) outside its McKee<br />
Refinery in Sunray, Texas, and grew to include even more<br />
alternative fuels investments in 2009.<br />
<strong>Valero</strong> was the first refiner to make a sizable investment<br />
in the ethanol business with its purchase of seven worldscale<br />
ethanol plants from VeraSun Energy. The move<br />
triggered a flurry of media and analyst activity, as it<br />
signaled the rapidly changing rules of energy investment.<br />
For a traditional petroleum refiner to embrace ethanol,<br />
a government-mandated blendstock for gasoline,<br />
conditions would have to be ideal. As it happened,<br />
VeraSun was in bankruptcy and looking for someone<br />
to save its operation and the hundreds of jobs that<br />
were threatened in the heartland of America. <strong>Valero</strong><br />
won its bid for the plants on March 18, 2009, agreeing<br />
to pay $477 million – roughly <strong>30</strong> percent of the plants’<br />
estimated replacement cost – for locations in Albert City,<br />
Iowa; Albion, Neb.; Aurora, S.D.; Charles City, Iowa; Fort<br />
Dodge, Iowa; Hartley, Iowa; and Welcome, Minn. A site<br />
under development in Reynolds, Ind., also was part of<br />
the deal. On February 6, 2009, company executive Gene<br />
Edwards announced a bid for the plants to employees,<br />
stressing how the deal would compliment <strong>Valero</strong>’s<br />
portfolio and provide long-term growth opportunities<br />
for shareholders. “VeraSun is one of the nation’s largest<br />
ethanol producers, but has very recently filed for<br />
bankruptcy and is selling high quality assets at a fraction<br />
of replacement cost,” Edwards told employees. “This is<br />
how <strong>Valero</strong> successfully grew its refinery portfolio, and<br />
we now have a similar opportunity with ethanol.”<br />
<strong>Valero</strong> Renewables Plant<br />
Albion, Nebraska<br />
Strategy for Success<br />
24
<strong>Valero</strong> closed the acquisition of five of the plants on April<br />
1, 2009, a sixth plant on April 9, 2009, and a seventh plant<br />
on May 6, 2009. In so doing, <strong>Valero</strong> became one of the<br />
nation’s largest ethanol manufacturers, producing 780<br />
million gallons annually under a new subsidiary, <strong>Valero</strong><br />
Renewable Fuels. The acquisition was a good business fit,<br />
with rising federal mandates to blend ethanol – a cornbased<br />
product – with gasoline. <strong>Valero</strong> quickly mobilized<br />
teams from across several departments and disciplines<br />
to the plants to have operations ready on day one – less<br />
than two weeks after the auction. <strong>Valero</strong>’s flexibility again<br />
proved profitable, and by the third quarter of 2009, the<br />
plants were running at capacity.<br />
But the investment was only the beginning. Just seven<br />
months later, <strong>Valero</strong> would make the ethanol leap again<br />
– this time investing $200 million in two former VeraSun<br />
plants in Linden, Ind. and Bloomingburg, Ohio, as well<br />
$72 million for a third plant owned by Renew Energy LLC<br />
in Jefferson, Wis. When finalized, the deals – purchased<br />
at 41 percent of replacement cost – will bring <strong>Valero</strong>’s<br />
annual production capacity to 1.1 billion gallons per year.<br />
From the McKee Wind Farm to processes that create<br />
fuel from algae and animal fat, <strong>Valero</strong> Renewables<br />
has taken the company to its farthest point yet in the<br />
alternative fuels industry – evidence that the company is<br />
constantly evaluating opportunities that bring value to<br />
the shareholder and to <strong>Valero</strong> itself.<br />
Our Company<br />
With growth as its backdrop, <strong>Valero</strong> Energy Corporation<br />
gained prominence and notoriety in an often unglamorous<br />
industry. Time and again, our company was painted as<br />
a different sort of venture – one that retained much of<br />
its small-company beliefs despite the size of its work<br />
force, refining capacity or business direction. <strong>Valero</strong> as<br />
a company continually has chosen to go its own way –<br />
with dedicated employees and a solid work ethic. It is<br />
a core belief system that has garnered recognition from<br />
the industry as well as policymakers and investors.<br />
They might question business decisions from time to<br />
time, but they do not question <strong>Valero</strong>’s strength as an<br />
ethical, experienced and socially responsible company.<br />
Our products improve people’s lives, are economical<br />
and reliable – a statement few can dispute in an era of<br />
unprecedented need. “<strong>Valero</strong> works hard for all of its<br />
stakeholders with sound business principles, planning<br />
and products that improve consumers’ lives,” Klesse told<br />
stockholders in 2009. “The jobs we provide, the taxes we<br />
pay, and the impact we have on the neighborhoods and<br />
communities around our facilities show the truly positive<br />
role we have in our society. That is our commitment.”<br />
*In December 2006, <strong>Valero</strong> completed the sale of its ownership interest in<br />
<strong>Valero</strong> GP Holdings, LLC, successfully spinning off its logistics operations<br />
(<strong>Valero</strong> L.P.) and its general partner, <strong>Valero</strong> GP Holdings. The new company<br />
was renamed NuStar Energy.<br />
25 <strong>Valero</strong> Lines 3oth anniversary edition
2010<br />
VALERO MAP of OPERATIONS<br />
RETAIL AND BRANDED WHOLESALE PRESENCE<br />
WHOLESALE MARKETING PRESENCE<br />
VALERO REFINERIES<br />
VALERO ETHANOL PLANTS<br />
VALERO ETHANOL PLANT<br />
(ACQUISITION PENDING EARLY 2010)<br />
CAMERON HIGHWAY OIL PIPELINE PROJECT<br />
(JOINT VENTURE)<br />
THIRD-PARTY OFFSHORE PLATFORMS<br />
VALERO HEADQUARTERS<br />
BENICIA<br />
ULTRAMAR—CANADIAN OPERATIONS<br />
CREDIT CARD CENTER<br />
WILMINGTON<br />
ARUBA<br />
MCKEE<br />
ARDMORE<br />
Strategy Map of Operations<br />
for Success 26
AURORA<br />
WELCOME<br />
ALBERT CITY<br />
FORT DODGE<br />
CHARLES CITY<br />
JEFFERSON<br />
ALBION<br />
HARTLEY<br />
JEAN GAULIN<br />
(QUEBEC)<br />
PAULSBORO<br />
DELAWARE CITY<br />
BLOOMINGBURG<br />
LINDEN<br />
MEMPHIS<br />
SAN ANTONIO<br />
ST. CHARLES<br />
THREE RIVERS<br />
PORT ARTHUR<br />
BILL GREEHEY<br />
(CORPUS CHRISTI EAST & WEST)<br />
HOUSTON<br />
TEXAS CITY<br />
27 <strong>Valero</strong> Lines 3oth anniversary edition
The heartbeat<br />
of valero<br />
There’s no question <strong>Valero</strong> is a different<br />
kind of company. Some say it’s because the<br />
company beat the odds to become one of<br />
the most successful and respected refining<br />
and marketing companies in the country. But most <strong>Valero</strong><br />
employees believe the corporate culture and special<br />
company spirit truly set them apart. Thanks to a wellconnected<br />
<strong>Valero</strong> Volunteer Council network, employees<br />
touch thousands of lives and help hundreds of nonprofit<br />
agencies in all major <strong>Valero</strong> communities.<br />
Since the first Volunteer Council program was launched<br />
in 1983, employee volunteer hours have remained<br />
strong, without regard to the ups and downs of the<br />
energy industry, changes in the company’s structure or<br />
size of the work force. Today, hundreds of thousands of<br />
hours continue to be logged by dedicated, hard-working<br />
employees who help because they want to, not because<br />
they must. Volunteer Councils assemble on their own<br />
time to discuss the needs of each community and tackle<br />
what they can. Mentorships, shelter support, holiday<br />
events and emergency relief are merely a piece of the<br />
vast network of help available to the residents of <strong>Valero</strong><br />
communities. The result of this work is a positive and<br />
palpable feeling among employees that they have made<br />
a difference beyond their skill sets at the refinery or at<br />
the office. Particularly in challenging times, the <strong>Valero</strong><br />
Volunteer Councils illustrate an important distinction<br />
in the world of corporate philanthropy – money doesn’t<br />
solve problems; people do.<br />
United Way<br />
In late 1979, <strong>Valero</strong> marked its arrival in the Alamo City<br />
in a big way when the company committed to supporting<br />
the San Antonio United Way campaign. Determined to<br />
make a positive difference in the community – though<br />
still at odds with the city over a gas-supply contract –<br />
<strong>Valero</strong> put its heart and soul into its first campaign. As a<br />
result, employees had the highest per capita contribution<br />
of any local company – $139.49 – and nearly all 486<br />
28
<strong>Valero</strong> San Antonio Volunteer Council 2009<br />
corporate employees gave to the campaign. In total,<br />
they contributed $67,793, and when combined with<br />
the corporate match, <strong>Valero</strong>’s gift to United Way was<br />
more than $100,000. The contribution not only made<br />
an impact on local agencies, it made a statement to city<br />
leaders. San Antonio was <strong>Valero</strong>’s new home, and the<br />
company was committed to doing its part to make the<br />
community a better place to live and work.<br />
<strong>Valero</strong>’s genuine spirit … has created<br />
a brighter future for countless individuals<br />
and families across the nation.<br />
——<br />
Howard Nolan, President, United Way of San Antonio and<br />
Bexar County<br />
Since then, <strong>Valero</strong> employees have increased annual<br />
contributions to United Way, most recently pledging more<br />
than $11 million to United Way agencies in communities<br />
nationwide. <strong>Valero</strong>’s recently acquired ethanol plants<br />
marked a milestone of their own in 2009 with their firstever<br />
United Way campaigns. With corporate support and<br />
an enthusiastic team at each location, the sites raised over<br />
$103,000. The money in 2010 will reach needy families<br />
and individuals throughout the nation’s heartland, at a<br />
time when a national recession is challenging United Way<br />
agencies to meet even greater demands for food, shelter<br />
assistance and family support.<br />
<strong>Valero</strong> CEO Bill Klesse spends time with a young advocate for the Muscular<br />
Dystrophy Association, one of the many national organizations supported annually<br />
by <strong>Valero</strong> and the <strong>Valero</strong> Energy Foundation.<br />
29 <strong>Valero</strong> Lines 3oth anniversary edition
to coordinate the tournament itself. Starting in 1996, the<br />
first three tournaments raised a total of $1.3 million for<br />
51 children’s charities. But the stakes were raised again<br />
when <strong>Valero</strong> claimed the title sponsorship of the Texas<br />
Open in 2001.<br />
Through its partnership with Habitat for Humanity, <strong>Valero</strong> Volunteers have built<br />
homes for families in several states.<br />
In 1993, <strong>Valero</strong> was honored with the United Way’s Spirit<br />
of America Award for <strong>Excellence</strong> – its highest corporate<br />
honor. At the time, <strong>Valero</strong> was the smallest company ever<br />
to have won the national award. <strong>Valero</strong> had just 1,900<br />
employees, revenues of $12 billion and was ranked No.<br />
<strong>30</strong>9 on the Fortune 500 list. With much excitement,<br />
the company received this award again in 2004, making<br />
<strong>Valero</strong> only the second company in United Way’s history<br />
to win this award twice. By then, the company boasted<br />
20,000 employees, revenues of $50 billion and a ranking<br />
of No. 34 on the Fortune 500 list. <strong>Valero</strong>’s companywide<br />
United Way gift of $7.5 million ranked among the top <strong>30</strong><br />
campaigns in the nation. Six years later, in 2010, <strong>Valero</strong><br />
will compete for the award again. “<strong>Valero</strong> has made<br />
headlines for many reasons through the years, but the<br />
one thing I come back to over and over is this company’s<br />
drive for community good,” said Kim Bowers, Executive<br />
Vice President and General Counsel. “It’s remarkable to<br />
see the length to which each location is willing to go.”<br />
More Than Great Golf<br />
The <strong>Valero</strong> Benefit for Children Golf<br />
Classic is the company’s largest<br />
grassroots fundraiser. Employees are<br />
involved with every aspect of the event,<br />
from soliciting sponsorships from suppliers and vendors,<br />
and nominating the children’s charities, to volunteering<br />
Held in the Alamo City since 1922, the Texas Open had<br />
lost its title sponsor and was in danger of being moved<br />
to another city. But <strong>Valero</strong> and San Antonio fought hard<br />
to keep the event. The prestigious tournament was a<br />
major economic generator, and it played an important<br />
role in promoting the city as a golf destination. With<br />
<strong>Valero</strong>’s new retail presence, which resulted from the<br />
UDS acquisition, the company was able to step in and<br />
save the important piece of history.<br />
After becoming Texas Open title sponsor in 2001,<br />
the Benefit for Children tournament has increased its<br />
charitable contribution by $1 million or more every year<br />
and spread those dollars to children’s charities across the<br />
<strong>Valero</strong> system. In 2009, the <strong>Valero</strong> Texas Open raised a<br />
remarkable $8 million for charity, securing its place – for<br />
the third consecutive year – as the top PGA tournament<br />
for charitable giving and one of the most successful<br />
outcomes in the Texas Open’s 87-year history. <strong>Valero</strong><br />
has raised more than $45 million since 2002 through its<br />
Texas Open activity. Bill Greehey’s vision and leadership<br />
made the event a tremendous success.<br />
Volunteerism the <strong>Valero</strong> Way<br />
In 2008, Volunteer Councils led the company’s first<br />
national Food Bank campaign. In California, volunteers<br />
helped launch the Bay Area’s “2-1-1 Project,” which<br />
allowed the United Way to answer 148,000 calls for<br />
assistance in its first year. The <strong>Valero</strong> Wilmington Refinery<br />
was named “Distinguished Citizen of the Year” by the<br />
Long Beach Boy Scouts for its contributions to youth<br />
and the community. <strong>Valero</strong> was only the third business<br />
and first oil company to be recognized in the award’s 20-<br />
year history. Elsewhere, volunteers have increased Meals<br />
on Wheels routes, transformed lives through a truancy<br />
counseling program, and fed hundreds of hungry families<br />
through the company’s own “Stuff the Truck” initiative.<br />
“In my 17 years of working in the nonprofit community,<br />
The Heartbeat of <strong>Valero</strong><br />
<strong>30</strong>
From the <strong>Valero</strong> Texas Open to the United Way, communities find a dedicated resource of funds and volunteerism in <strong>Valero</strong> Energy. The company’s biggest civic<br />
mission – improving the lives of children – is given a big boost annually through <strong>Valero</strong>’s generous sponsors, business partners and employees.<br />
I have never seen a corporation do a better job in serving<br />
our community than <strong>Valero</strong> Energy Corporation,” wrote<br />
one San Antonio beneficiary in 2009. The words are a<br />
source of deep motivation to volunteers to continue their<br />
26-year legacy.<br />
Volunteerism is a proud tradition<br />
at <strong>Valero</strong>. And I can assure you, they<br />
are fulfilling their mission.<br />
——<br />
Howard Peak, former San Antonio mayor, 2001<br />
For its dedication to employees, <strong>Valero</strong> has continually<br />
ranked as one of Fortune magazine’s “100 Best Companies<br />
to Work For” in America. It has also been named one of<br />
IndustryWeek’s 100 Best-Managed Companies in the<br />
World, and was honored with the 2004 Pride Award,<br />
which recognizes the company with the greatest employee<br />
pride among Fortune Magazine’s “100 Best Companies.”<br />
In 1998, when <strong>Valero</strong> was ranked No. 294 on the Fortune<br />
In 2008 and 2009, <strong>Valero</strong> celebrated the completion of two company-sponsored<br />
Habitat houses.<br />
31 <strong>Valero</strong> Lines 3oth anniversary edition
500, the company ranked No. 15 in terms of philanthropy<br />
in a study done by the Council on Economic Priorities and<br />
Worth Magazine. In 1999, <strong>Valero</strong> was also one of only nine<br />
U.S. companies to receive the Points of Light Foundation’s<br />
Award for <strong>Excellence</strong> in Corporate Community Service.<br />
These honors are a tribute to the employees’ dedication.<br />
“We think highly of <strong>Valero</strong>, and I am thrilled that <strong>Valero</strong><br />
is here and part of our community,” former San Antonio<br />
Mayor Lila Cockrell said in 2005. “Twenty-five years<br />
ago, I felt we were getting a very important asset in the<br />
relocation of the company and that it would bring in<br />
jobs and would bring in growth. But I don’t think any<br />
of us could have foreseen that … it would become the<br />
corporation it is today. It is fantastic.”<br />
<strong>Valero</strong> exemplifies how corporate America<br />
can be an important and valuable resource for<br />
volunteer action. We applaud their efforts.<br />
——<br />
Robert K. Goodwin, president and CEO of the Points of<br />
Light Foundation, <strong>Valero</strong> Lines, January 2000<br />
In 2005, <strong>Valero</strong> went far beyond the reach of its<br />
communities to help those across the globe affected by<br />
the tsunami. Employees donated $150,000, and with<br />
<strong>Valero</strong>’s corporate contribution, more than $400,000<br />
went to the American Red Cross to help with its relief<br />
effort. And, as many companies did after September 11,<br />
2001, <strong>Valero</strong> rallied its employees for a massive goodwill<br />
effort in response to the terrorist attacks in New York,<br />
Washington D.C. and Pennsylvania. From donating blood<br />
and money to collecting food and supplies, employees<br />
demonstrated American pride and helped put the nation<br />
on the road to recovery. In a fashion that has become<br />
almost routine in emergency situations, <strong>Valero</strong> and its<br />
employees mobilized to support those who were affected<br />
by the attacks. The company contributed $250,000 to<br />
the American Red Cross, and delivered $15,000 worth of<br />
supplies to rescue workers in New York City.<br />
Thanks to the organization and dedication of <strong>Valero</strong><br />
Volunteer Councils everywhere, the company’s impact on<br />
the community is organized, efficient and impactful. In<br />
San Antonio, thousands of needy families in the heart of<br />
the city receive school supplies for the new school year<br />
on the grounds of <strong>Valero</strong> Field, a ballpark (renovated by<br />
<strong>Valero</strong> in 1994) in the middle of a gang-ridden public<br />
housing project. The event transforms the field into a<br />
rally for education, with <strong>Valero</strong> Volunteers handing out<br />
backpacks and supplies, serving meals and providing live<br />
music to brighten the day. “The SAHA Kid’s event was a<br />
huge success – never seen so many poor people in my life –<br />
the economy has really hit these families very hard,” wrote<br />
one <strong>Valero</strong> Volunteer. Without <strong>Valero</strong>’s presence, many of<br />
The Heartbeat of <strong>Valero</strong><br />
32
these at-risk children do not make it to school the first day<br />
– lacking the essentials needed for a successful year.<br />
<strong>Valero</strong> locations in 2008 organized a national food drive<br />
event, called “Stuff the Truck,” to benefit all food banks<br />
in participating areas. With full corporate support, the<br />
effort was well-publicized and generated thousands of<br />
pounds of food for the hungry. Without a network of<br />
willing volunteers already established, a national response<br />
of this kind would be difficult to pull off. <strong>Valero</strong> Volunteers<br />
ended 2008 with more than 148,000 hours invested in<br />
their communities. In addition, hundreds of employees<br />
serve as board members for nonprofit agencies in their<br />
areas, bringing <strong>Valero</strong>’s overall time commitment even<br />
higher. In San Antonio alone, <strong>Valero</strong> Volunteers currently<br />
serve 174 nonprofit boards and logged 62,000 volunteer<br />
hours in 2008. Companywide in 2009, volunteer hours<br />
have surpassed 56,000 so far.<br />
Tale of Two Hurricanes<br />
On August 29, 2005, Hurricane Katrina roared through<br />
Louisiana and Mississippi, devastating the land and<br />
leaving many dead and thousands homeless. <strong>Valero</strong><br />
employees, however, wasted no time in helping their<br />
co-workers at the St. Charles Refinery, many of whom<br />
lost family members and watched homes fall victim to<br />
the storm. <strong>Valero</strong> spent an estimated $5 million in relief<br />
efforts for St. Charles. In addition, the company gave $1<br />
million to the American Red Cross immediately following<br />
the hurricane, and $250,000 was given to the U.S. Golf<br />
Hurricane Relief Fund as part of the 2005 <strong>Valero</strong> Texas<br />
Open PGA golf tournament. Employees companywide<br />
raised another $290,409, alongside countless clothing<br />
drives, blood drives and thousands of volunteer hours at<br />
relief sites. In just two weeks, <strong>Valero</strong> volunteers across<br />
the country contributed close to 8,600 hours toward<br />
Hurricane Katrina relief. And, the company mobilized its<br />
SAFE Fund – an astounding $545,000 – as well as other<br />
resources to ease the burden on displaced workers.<br />
Unbelievably, less than a month later, Hurricane Rita took<br />
a mean turn northward and slammed into <strong>Valero</strong>’s newly<br />
acquired Port Arthur Refinery. The 19th named hurricane<br />
of 2005 hit Port Arthur with fury. But the response<br />
was equally strong. “I have been in the business for<br />
31 years, and I’ve seen nothing like this before,” Rich<br />
Marcogliese, Executive Vice President of Operations,<br />
told the media in September 2005. “You always go<br />
through hurricane-preparedness drills in the Gulf, but to<br />
see 14 feet of flooding in some areas, not even counting<br />
storm surge, inside a refinery and not be down for<br />
weeks on end, that’s unprecedented.” The outpouring<br />
of support for <strong>Valero</strong>’s newest employees – as well as<br />
33 <strong>Valero</strong> Lines 3oth anniversary edition
Hours after Hurricane Rita roared across<br />
<strong>Valero</strong>’s Port Arthur Refinery, floodwaters<br />
covered much of the refinery grounds and<br />
surrounded this storage tank. The company’s<br />
response was immediate — from employee<br />
assistance to refinery restart — and the plant<br />
was back online in less than three weeks. It was<br />
the first Gulf Coast plant downed by the storm<br />
to restart after Rita.<br />
media repeatedly requested tours of <strong>Valero</strong>’s refineries,<br />
with their “<strong>Valero</strong>ville” villages, onsite support and<br />
camaraderie. Unusual to the world, perhaps, but on par<br />
with <strong>Valero</strong>’s culture.<br />
Former <strong>Valero</strong> CEO Bill Greehey personally visited with refinery employees<br />
following two back-to-back hurricanes in 2005. Through their stories, <strong>Valero</strong><br />
learned of the mass devastation in Texas and Louisiana, and quickly organized a<br />
massive response of food, shelter and financial aid.<br />
for communities and their law enforcement personnel –<br />
made a lasting impression. More than $650,000 in SAFE<br />
Fund grants went out, alongside food, clothing, sheets,<br />
blankets, hats, chain saws, fuel and generators. National<br />
Gasoline, electricity and food were in short supply<br />
during both hurricanes. But while other sites shuttered<br />
operations, <strong>Valero</strong> responded to its work force because<br />
it was the right thing to do. “I came here two years ago,<br />
and I’ve never seen anything like this. What I saw was<br />
tremendous support,” one St. Charles employee said.<br />
“People who had lost everything were helping those<br />
with more immediate needs. If someone lost his whole<br />
house, he would go and help his neighbor so they could<br />
save that neighbor’s house. From the corporate support<br />
to the co-worker support, people were helping each other<br />
out. It was just overwhelming, the caring and support<br />
that we got.”<br />
<strong>Valero</strong> St. Charles restarted in just nine days – ahead of<br />
any other refinery downed in the aftermath of Hurricane<br />
The Heartbeat of <strong>Valero</strong><br />
34
Katrina. And Port Arthur, which secured electricity<br />
from a generator shipped from Greece, illuminated<br />
the otherwise darkened landscape weeks ahead of its<br />
competitors. Such effort did not go unnoticed. President<br />
Bush sent his thanks for <strong>Valero</strong>’s efforts post-Katrina.<br />
And Texas Gov. Rick Perry told the media post-Rita that<br />
were it not for <strong>Valero</strong> and other private industry, area<br />
law enforcement would have patrolled Port Arthur on<br />
bicycles rather than in cars. A story on the company’s<br />
intranet launched on November 4, 2005 under the title,<br />
“A Tale of Two Hurricanes.” The tribute highlighted<br />
everything from heroism to company pride and included<br />
a slide show of more than <strong>30</strong>0 images. And in the hopes<br />
of packaging a tribute and memento for all <strong>Valero</strong><br />
employees, the company dedicated its next <strong>Valero</strong> Lines<br />
magazine entirely to hurricane efforts.<br />
Leading with Heart<br />
Following hurricanes Katrina and Rita, <strong>Valero</strong><br />
employees would go on to weather other devastating<br />
storms such as hurricanes Ike and Gustav in 2008.<br />
The storms were a challenge and a call to arms for<br />
<strong>Valero</strong> and the <strong>Valero</strong> Energy Foundation, which<br />
helped entire communities get back on their feet. It<br />
was not unlike responses organized for United Way, the<br />
Sept. 11 terrorist attacks, Habitat for Humanity, the<br />
National Multiple Sclerosis Society, the Children’s Miracle<br />
Network, Meals on Wheels, Operation Call Home,<br />
deployed U.S. military members or the thousands of<br />
children awaiting help at local agencies. <strong>Valero</strong> employees<br />
learn of a need, and they respond without hesitation.<br />
“<strong>Valero</strong> and its employees do a terrific job of giving of<br />
their time, their talent and their money to help make a<br />
better life for someone less fortunate,” former <strong>Valero</strong><br />
executive Ed Benninger said in 2001. “But it does not end<br />
there – it carries to the workplace as well. The spirit of<br />
giving comes from the heart, and <strong>Valero</strong> is all heart.”<br />
As it entered a new era in 2010, <strong>Valero</strong> and its employees<br />
faced a new set of challenges. But the company still found<br />
reason to recognize <strong>30</strong> years of teamwork and dedication<br />
– success guided by the strength of its people. “This<br />
uniqueness of <strong>Valero</strong> is seen clear across the board,”<br />
Klesse said. “Terrific people make terrific things happen!”<br />
35 <strong>Valero</strong> Lines 3oth anniversary edition
Safety &<br />
environmental<br />
From refineries and field offices to retail<br />
stores and corporate headquarters, safety is<br />
a cornerstone of <strong>Valero</strong> history. By the time<br />
<strong>Valero</strong> arrived in 1980, the safety culture<br />
was firmly entrenched following an overhaul of LoVaca<br />
Gathering Company’s operations in the late 1970s. Once<br />
<strong>Valero</strong> entered the refining business, its safety culture<br />
became even more critical.<br />
A commitment to safe operations was the first item listed<br />
in the new company’s mission statement. Despite the<br />
tremendous change it endured since then, <strong>Valero</strong> has not<br />
wavered on safety expectations. To this day, it is the first<br />
item of discussion at all executive management meetings,<br />
and celebrations make reference to the latest safety<br />
achievements. Best safety practices and safety incident<br />
reports are shared among all refineries, and injury<br />
rates consistently beat the industry average. “Safety is<br />
integrated into every facet of the company’s operations,<br />
from planning work through completion,” said Kirk<br />
Saffell, Vice President of Health, Safety & Environmental.<br />
“It is our way of doing business.”<br />
One of the most visible ways <strong>Valero</strong> showcases its<br />
safety record is through an annual Chairman’s Award.<br />
Every January, refineries with the best records in safety,<br />
environmental performance and reliability are celebrated<br />
by <strong>Valero</strong>’s top management. The Chairman’s Safety<br />
Award is the longest-running company award, dating<br />
back to 1981. It honors the <strong>Valero</strong> refinery with the best<br />
performance in a number of safety areas, including total<br />
recordable injuries, loss-time injuries and process safety<br />
management performance. “The refineries that achieve the<br />
most in these areas … are also doing the most to advance<br />
<strong>Valero</strong> in its mission to become a world-class competitor<br />
in the global energy business,” said Rich Marcogliese,<br />
Executive Vice President and Chief Operating Officer.<br />
“We know that all of our refineries have achieved much<br />
36
Leaders of several <strong>Valero</strong> refineries celebrate their Chairman’s Award recognition in 2009. The honors are given annually to recognize the best efforts in safety,<br />
reliability, environmental performance and retail safety and environmental performance.<br />
and are committed to excellence in all they do – from safe<br />
and reliable operations, to environmental stewardship,<br />
and involvement in communities. The Chairman’s Awards<br />
recognize the ‘best of the best.’ ”<br />
<strong>Valero</strong> has set a new standard<br />
for safety and health excellence<br />
in the refining industry.<br />
——<br />
John Miles, Retired OSHA Regional Administrator<br />
In 2000, <strong>Valero</strong> employees took their safety commitment<br />
to a higher level. By then, the company owned four<br />
refineries thanks to its Basis acquisition, and safety<br />
across the system was a constant topic of conversation.<br />
A group of <strong>Valero</strong> Texas City employees researched<br />
OSHA’s Voluntary Protection Program (VPP), the<br />
federal government’s highest safety certification, and<br />
Chairman’s Awards History<br />
Safety<br />
Environmental<br />
1998 – Bill Greehey<br />
2004 – St. Charles<br />
1999 – Bill Greehey<br />
2005 – Wilmington<br />
2000 – Houston<br />
2006 – Wilmington<br />
2001 – Bill Greehey<br />
2007 – Three Rivers<br />
2002 – Denver, Three Rivers<br />
2008 – Benicia<br />
2003 – Bill Greehey<br />
2004 – Wilmington<br />
reliability<br />
2005 – St. Charles<br />
2006 – Benicia<br />
2006 – Three Rivers<br />
2007 – Jean Gaulin<br />
2007 – St. Charles<br />
2008 – Jean Gaulin<br />
Retail Awards<br />
Safety 2008 – Houston Zone 201<br />
Environmental 2008 – Houston Zone 201<br />
37 <strong>Valero</strong> Lines 3oth anniversary edition
The <strong>Valero</strong> Texas City Refinery was the first to earn recognition in OSHA’s Voluntary Protection Program, a stringent set of safety expectations embraced by many<br />
in the industry. As of December 2009, 28 of 150 U.S. refineries had earned Star Site recognition. Ten belonged to <strong>Valero</strong>.<br />
asked <strong>Valero</strong> for permission to be audited. Becoming<br />
certified as a VPP “Star Site” would be rigorous and timeconsuming,<br />
but the end result would be even greater<br />
safety results. From this, a companywide effort was born.<br />
The program represented a new way of communicating<br />
and working together for the good of employees and<br />
the community. “OSHA has gained a valuable partner<br />
through <strong>Valero</strong>’s participation in VPP,” John Miles, OSHA<br />
Regional Administrator, said in 2005. “Not only have<br />
they successfully reduced injuries and illnesses at their<br />
own facilities, they have worked to improve conditions at<br />
numerous other sites through their support of the VPPPA’s<br />
mentoring program and OSHA’s Special Government<br />
Employee program.”<br />
The Texas City Refinery proudly became <strong>Valero</strong>’s first<br />
“Star Site” in 2001, followed the next year by the Krotz<br />
Springs and Three Rivers refineries. The Houston Refinery<br />
<strong>Valero</strong> Houston Refinery employees celebrate their recertification in the federal<br />
VPP safety program in 2007.<br />
was named a “Star Site” in 2003, and the Paulsboro and<br />
Wilmington refineries were approved for the honor in<br />
Safety & Environmental<br />
38
2004. The Ardmore Refinery followed in 2005, as did<br />
both the Corpus Christi plants. The Benicia and St.<br />
Charles refineries earned VPP status in 2006, followed by<br />
the Corpus Christi Asphalt Plant and <strong>Valero</strong> Aviation in<br />
2008. Also in 2008, an unprecedented team of auditors<br />
and <strong>Valero</strong> officials extended an honorary VPP honor to<br />
the Jean Gaulin Refinery in Quebec. While Canada did<br />
not have a VPP program of its own, the refinery was<br />
recognized for having safety standards that reflected<br />
the VPP mission in America. Since that time, several<br />
VPP re-certifications have been earned. As of December<br />
2009, 28 out of 150 U.S. refineries had earned Star Site<br />
recognition. Ten of these sites proudly belong to <strong>Valero</strong>.<br />
Commitment to <strong>Excellence</strong><br />
Management System<br />
In 2008, a program was launched to reinvigorate<br />
employees on safety and reliability. The Commitment<br />
to <strong>Excellence</strong> campaign offered guiding principles that<br />
<strong>Valero</strong> would use to achieve excellence in business, its<br />
industry and in relationships with employees and the<br />
community. From that, the Commitment to <strong>Excellence</strong><br />
Management System (CTEMS) was born. In a video aired<br />
companywide in September 2008, Bill Klesse and Rich<br />
Marcogliese introduced the new program and explained<br />
its purpose. “As North America’s largest refiner, <strong>Valero</strong> is<br />
poised to become a world-class competitor in the global<br />
energy business. But to fulfill this vision and generate<br />
industry-leading returns on our investments, we must<br />
pursue excellence in all aspects of our business,” Klesse<br />
said. “In the end, operational excellence is what will set<br />
us apart from our competitors and make us strong in<br />
any business cycle. We have a tremendous opportunity<br />
to continue to improve our operating performance as we<br />
move toward achieving our long-term goals.”<br />
Marcogliese emphasized CTEMS’ ability to establish a<br />
more uniform and comprehensive approach to planning,<br />
executing, checking and acting to improve <strong>Valero</strong><br />
employees’ work activities. “It is not a one-time program<br />
with a definable end,” Marcogliese said. “It is the way<br />
<strong>Valero</strong> will run its business, and fulfill its commitment to<br />
operational excellence.”<br />
<strong>Valero</strong>’s Corporate Fire School is an annual event to hone emergency response skills and strengthen teamwork between refinery first responders. In an industry of heat,<br />
steel and pressure, safety is critical to the health of <strong>Valero</strong> employees and the future of the company.<br />
39 <strong>Valero</strong> Lines 3oth anniversary edition
In its lifetime, <strong>Valero</strong> has invested $19.5 billion to improve its refineries. Since<br />
1997, <strong>Valero</strong> has spent $5.4 billion on regulatory and environmental compliance.<br />
The safety mission continues today. Since 2004, <strong>Valero</strong>’s<br />
refining system’s total recordable incident rate (TRIR)<br />
average of 0.89 per 200,000 working hours has beaten<br />
industry averages.<br />
Environmental excellence is not only<br />
good ethics, it’s also good business.<br />
——<br />
1996 <strong>Valero</strong> Summary Annual Report<br />
In the early 1980s, <strong>Valero</strong> recognized that a worldwide<br />
movement toward cleaner fuels was on the horizon.<br />
Long before most refineries sensed the move toward<br />
reformulated gasoline and emissions controls, the<br />
company was busy developing a strategy to meet<br />
those new demands. As the company has grown, it has<br />
remained at the forefront of this clean-fuels movement.<br />
Twenty-eight years after purchasing the property, <strong>Valero</strong>’s<br />
largest and most visible commitment to environmental<br />
stewardship is its Corpus Christi Refinery complex,<br />
renamed the Bill Greehey Refinery in 2006. <strong>Valero</strong> invested<br />
$535 million to construct a refinery that would take the<br />
lowest-grade feedstocks and turn them into premium,<br />
clean-burning fuels. The upgrade was no easy task, but<br />
by its completion in 1984, the refinery aptly produced a<br />
full slate of unleaded gasoline – years before it became<br />
a federal requirement to produce 100 percent unleaded<br />
fuel.<br />
The Clean Air Act of 1990 – at the time, the most allencompassing<br />
piece of legislation in U.S. history – became<br />
law with the hope of improving the nation’s air quality<br />
by tightening fuel specifications. The act mandated the<br />
use of cleaner-burning, “reformulated” gasoline (RFG) in<br />
the nation’s most polluted cities by 1995. But RFG had a<br />
higher oxygen content, which required dramatic changes<br />
to refining processes at significant costs to refiners.<br />
Because of its investments during the previous decade,<br />
however, <strong>Valero</strong> already was a leader in providing cleanerburning<br />
fuels, both in the U.S. and internationally. In<br />
February 1992, the company dedicated its $290 million<br />
Hydrocracker and Naphtha Reformer units at the Corpus<br />
Christi facility. More than 120 energy industry officials,<br />
dignitaries and media attended, taking tours of the plant<br />
and learning more about the project’s environmental<br />
importance. These units increased the company’s<br />
production of gasoline and gasoline-related products<br />
from 70 percent to 85 percent of total throughput. <strong>Years</strong><br />
later, <strong>Valero</strong> would become the first refiner outside the<br />
state of California to produce and supply California Air<br />
Resources Board (CARB) gasoline, a blend of gasoline<br />
that meets California’s stringent clean fuels standards.<br />
In the mid-1990s, <strong>Valero</strong> voluntarily added $40 million<br />
in additional environmental initiatives. A marine vapor<br />
recovery unit was added to capture vapors as gasoline<br />
was loaded onto ships and recycle them back into the<br />
refining process, equating to millions of gallons per<br />
year. A Belco scrubber was built to significantly reduce<br />
emissions – more than 40 percent below EPA standards –<br />
and became a staple at many of <strong>Valero</strong>’s refineries today.<br />
Such voluntary initiatives helped earn <strong>Valero</strong> the highest<br />
environmental award in Texas, the 1995 Governor’s<br />
Award for Environmental <strong>Excellence</strong>, presented by then-<br />
Texas Governor George W. Bush.<br />
The Houston and Texas City refineries acquired by <strong>Valero</strong><br />
in the Basis acquisition in 1997 were both “grandfathered”<br />
with regard to state environmental permitting laws.<br />
<strong>Valero</strong>, however, committed to dramatically reducing<br />
emissions from the plants anyway, by installing $60<br />
million in emission-control technology. The upgrades<br />
promised to reduce emissions from the two facilities<br />
Safety & Environmental<br />
40
In 2008, the <strong>Valero</strong> St. Charles refinery earned a statewide recognition for environmental excellence. Refinery initiatives including a pollution-prevention program, a<br />
computer recycling project and an environmental management system were recognized in April 2008 as part of the state’s Environmental Leadership Program.<br />
by approximately 40 percent. Nine other companies<br />
eventually followed <strong>Valero</strong>’s lead, but then-Governor Bush,<br />
impressed with <strong>Valero</strong>’s leadership and commitment,<br />
used the <strong>Valero</strong> Houston Refinery as a backdrop for a<br />
press conference to announce the voluntary program.<br />
“These 10 companies, working with state environmental<br />
leaders, are taking responsibility for cleaner air,” Bush<br />
said at the press conference. “By voluntarily receiving<br />
state air permits for their older facilities and installing<br />
modern emissions control technology, these companies<br />
will reduce air pollution by an estimated 10,000 tons<br />
a year.” Environmental initiatives at the refineries also<br />
helped the <strong>Valero</strong> Houston and Texas City plants join the<br />
Bill Greehey refinery in the Texas Clean Industries 2000<br />
program that called for industrial plants to reduce their<br />
emissions by 50 percent between 1995 and 2000.<br />
In the summer of 2003, <strong>Valero</strong> acquired not only its<br />
St. Charles Refinery but also a host of environmental<br />
ailments at the plant. The refinery had not been wellmaintained<br />
and was plagued by problems. Addressing<br />
safety and the environment first, <strong>Valero</strong> dramatically<br />
improved the plant’s ecological profile – so dramatic, in<br />
fact, that the refinery earned <strong>Valero</strong>’s first “Chairman’s<br />
Award for Environmental <strong>Excellence</strong>” in February 2005.<br />
The inaugural award was and continues to be given to the<br />
refinery with the best overall environmental performance.<br />
<strong>Valero</strong> continued to contribute to clean energy with the<br />
completed construction of a 50-megawatt wind farm near<br />
its McKee Refinery in the Texas Panhandle. In total, 33 GE<br />
wind turbines operate just outside the refinery and supply<br />
energy to the plant. Construction of the first six turbines<br />
began in mid-October 2008, and took approximately<br />
two months to complete. Sales to a local utility began<br />
shortly thereafter. Since the wind farm replaced electricity<br />
generated from fossil fuels, it instantly helped reduce<br />
<strong>Valero</strong>’s carbon footprint – a primary objective of the<br />
project. “Initiatives like our wind farm help to make us<br />
an industry leader in environmental stewardship,” said<br />
Kirk Saffell, Vice President of Environment and Safety.<br />
The open land around the McKee Refinery made it ideal<br />
for construction of the 250-foot wind turbines, with<br />
prevailing winds capable of providing a steady supply of<br />
electricity.<br />
Today, the company has a full department dedicated to<br />
Alternative Fuels. And the acquisition of nine ethanol<br />
plants, with one acquisition pending in 2010, has opened<br />
new ventures for the company in clean-fuel technology.<br />
41 <strong>Valero</strong> Lines 3oth anniversary edition
<strong>Valero</strong> Bill Greehey Refinery<br />
In its leadership, however, <strong>Valero</strong> also has been thrust<br />
into the political debate over carbon emissions in 2009.<br />
Proposed legislation to saddle refiners with the lion’s share<br />
of emissions charges prompted sharp rebuke from <strong>Valero</strong><br />
and from its CEO. In his testimony before a contentious<br />
Congressional committee in October 2009, Klesse urged<br />
U.S. policymakers to consider the devastating effects of<br />
proposed cap-and-trade legislation – particularly job losses<br />
in the refining industry – if the measure passed.<br />
Speaking on behalf of<br />
<strong>Valero</strong> and the National<br />
Petrochemical and Refiners<br />
Association (NPRA), which he chaired, Klesse warned<br />
members of the Environment and Public Works Committee<br />
that the proposed “Clean Energy Jobs and American Power<br />
Act” would have a staggering impact on the refining and<br />
petrochemical industry. “Plainly said, this legislation tosses<br />
away our nation’s competitive advantage, further damages<br />
our economy, destroys jobs and threatens our national<br />
security,” Klesse said. At press time, the legislation had not<br />
passed the Senate and will be revisited at a later date.<br />
In its lifetime, <strong>Valero</strong> has invested $19.5 billion to<br />
improve its refineries. Since 1997, the company has spent<br />
$5.4 billion on regulatory and environmental compliance<br />
work. And with more regulations and fuel specifications on<br />
the horizon, <strong>Valero</strong> expects to spend another $1.4 billion<br />
over the next several years. “Our company continues to be<br />
a contributor to society,” Klesse said. “We will continue<br />
to honor the commitments we have made to all of our<br />
stakeholders.”<br />
The safety of our employees,<br />
our operations and our communities<br />
is our highest priority.<br />
——<br />
<strong>Valero</strong> Social Responsibility Report, 2009<br />
Safety & Environmental<br />
42
Turbines turn in the glow of a Sunray, Texas sunset. The <strong>Valero</strong> McKee<br />
Refinery is home to a 33-turbine wind farm that supplies electricity to the<br />
refinery and its neighbors.
1980<br />
<strong>Valero</strong> Energy Corporation is a rapidly growing energy company with approximately<br />
978 employees, annual revenues in excess of $1.7 million and assets that will reach<br />
$1 billion in 1981. <strong>Valero</strong> is strongly based in the natural gas transmission and<br />
processing industries. It is expanding into key energy-related activities, including<br />
gas liquids extraction and transportation, refining, oil field and industrial supplies,<br />
exploration and production, natural gas storage and fuel oil transportation.<br />
2010<br />
<strong>Valero</strong> Energy Corporation is a Fortune 500 company based in San Antonio with<br />
approximately 21,000 employees. The company owns or operates 15 refineries with a<br />
combined throughput capacity of approximately 2.8 million barrels per day. <strong>Valero</strong> is<br />
also a leading ethanol producer with nine ethanol plants in the Midwest with a combined<br />
capacity of 1 billion gallons per year, and is one of the nation’s largest retail operators<br />
with approximately 5,800 retail and branded wholesale outlets in the United States,<br />
Canada and the Caribbean under the <strong>Valero</strong>, Diamond Shamrock, Shamrock, Ultramar,<br />
and Beacon brands. Please visit www.valero.com for more information.
<strong>Valero</strong><br />
Family Album
<strong>Valero</strong> Headquarters<br />
Acquired from Ultramar Diamond Shamrock in December 2001, <strong>Valero</strong> Energy Corporation’s current home at One <strong>Valero</strong> Way<br />
sits in a wooded area of northwest San Antonio. The 148-acre, renovated <strong>Valero</strong> campus includes two new office buildings, a<br />
remodeled main building and expanded parking facilities. The 700,000 square foot complex features an exterior made of Texas<br />
limestone.<br />
<strong>Valero</strong>’s first home was located in downtown San Antonio. By August 1979, <strong>Valero</strong> Tower One was occupied and a second tower<br />
had begun construction. The buildings were sold to PG&E as part of a spin-merger in 1997. In October 1997, <strong>Valero</strong> broke ground<br />
on a new site, One <strong>Valero</strong> Place, and reached capacity by the time it was finished in December 1998. A second building, Two <strong>Valero</strong><br />
Place, was completed in March 2000. The buildings were sold to San Antonio Water System (SAWS) in 2001 for $<strong>30</strong> million.<br />
A third and final move to <strong>Valero</strong>’s current headquarters was one of the biggest in company history, taking a year to complete.<br />
46
Amarillo crediT center<br />
Joined <strong>Valero</strong> in 2001<br />
The Amarillo Credit Card Center, acquired and grown as part of <strong>Valero</strong>’s purchase of Ultramar Diamond Shamrock in 2001, has<br />
demonstrated a personal commitment to customer care for more than 60 years. Since its first days of operation, the center has<br />
been a highly efficient facility, providing customers with the best service in the industry. The center has 137 employees who are<br />
committed to their customers and their community. Throughout the year, employees organize events and volunteer for various<br />
charities such as Habitat for Humanity, Amarillo Food Bank, local mentoring programs and many more. In times of disaster, the<br />
Credit Card Center works with customers to protect their credit and help meet all of their financial obligations.<br />
47
Ardmore Refinery<br />
Joined <strong>Valero</strong> in 2001<br />
Throughput capacity: 90,000 barrels per day<br />
Constructed in 1913, the <strong>Valero</strong> Ardmore Refinery sits on 722 acres outside the city of Ardmore, Okla. The plant has undergone<br />
numerous upgrades since its purchase by <strong>Valero</strong> in 2001 as part of the Ultramar Diamond Shamrock acquisition. The refinery has<br />
been modernized to process heavier, sour crudes while maintaining a high product yield. These critical upgrades have established<br />
the refinery as a leader in the production of clean-burning fuels, particularly in Oklahoma. In addition to production and processing,<br />
the refinery also has more than 2.4 million barrels of refined product storage. The refinery is VPP Star Site certified for safety.<br />
48
Aruba Refinery<br />
Joined <strong>Valero</strong> in 2004<br />
Joined <strong>Valero</strong> in 2004<br />
Throughput capacity: 235,000 275,000 barrels per day<br />
Text Commissioned Here in 1929 by Standard Oil, the Aruba Refinery was purchased by <strong>Valero</strong> in 2004 from El Paso Energy. The facility<br />
has undergone significant upgrades since it was re-commissioned in the early 1990s. The refinery processes lower-cost, heavy sour<br />
crude oil and produces a high yield of finished distillate products and valuable intermediate feedstocks that can be marketed in<br />
the U.S. Gulf Coast, Florida, the New York Harbor, the Caribbean, South America and Europe. The refinery has excellent logistics,<br />
including two deepwater marine docks with capacity for ultra-large crude carriers, six docks for refined products and a truck rack<br />
for local sales.<br />
49
Benicia Refinery<br />
Joined <strong>Valero</strong> in 2000<br />
Throughput capacity: 170,000 barrels per day<br />
The Benicia Refinery was purchased by <strong>Valero</strong> in 2000 from ExxonMobil. Built as a grassroots project in 1968, this plant is now<br />
one of the most complex refineries in the United States. It sits on 800 acres along the Carquinez Strait, a tributary of San Francisco<br />
Bay. Approximately 70 percent of the refinery’s product slate is CARB gasoline, California’s clean-burning fuel. The refinery also<br />
has significant asphalt production capabilities and produces 25 percent of the asphalt supply in northern California. The plant is<br />
VPP Star Site certified for safety.<br />
50
Bill Greehey Refinery<br />
Joined <strong>Valero</strong> in 1981/2001<br />
Throughput capacity: 315,000 barrels per day<br />
<strong>Valero</strong> acquired an interest in 1981 from Saber Energy, and fully commissioned the site in 1983. Referred to as the Corpus Christi<br />
West Plant, the facility is <strong>Valero</strong>’s first and longest-owned refinery. It is considered one of the most complex refineries in the world,<br />
specializing in the production of environmentally clean fuels and products, primarily RFG and ultra-low-sulfur diesel. In 2001,<br />
<strong>Valero</strong> acquired a neighboring facility in Corpus Christi from Coastal Oil, adding another 115,000 BPD of capacity to its operation.<br />
Commonly known as the Corpus Christi East Plant, this facility processes heavy, high-sulfur crude oil into light products, asphalt<br />
and petroleum coke. Combined, the East and West plants sit on 523 acres along the Corpus Christi Ship Channel. They are both<br />
VPP Star Site certified for safety. In 2005, Corpus Christi complex was renamed the Bill Greehey Refinery, in honor of <strong>Valero</strong>’s first<br />
chairman and CEO.<br />
51
Delaware City Refinery<br />
Joined <strong>Valero</strong> in 2005<br />
Throughput capacity: 140,000 barrels per day.<br />
The <strong>Valero</strong> Delaware City Refinery was commissioned in 1956 with a throughput capacity of 140,000 barrels per day (BPD). The<br />
refinery has undergone several revamps and expansion projects to increase the total capacity to 210,000 BPD. In the fall of 2009,<br />
<strong>Valero</strong> announced the permanent closure of the Delaware City Refinery following significant economic shortfalls and a steep<br />
downturn in the refining market. At the time of publication, this facility continued to be in transition.<br />
52
Houston Refinery<br />
Joined <strong>Valero</strong> in 1997<br />
Throughput capacity: 145,000 barrels per day<br />
Commissioned in 1942, the Houston Refinery has undergone numerous expansions to process a wide range of petroleum products.<br />
<strong>Valero</strong> acquired the refinery in 1997 with the purchase of three Basis Petroleum assets from Salomon Inc. The refinery is located<br />
on the Houston Ship Channel, with deepwater access for off-loading feedstocks. The refinery is a mid-sized plant that sits on<br />
approximately 250 acres inside the city limits of Houston.<br />
53
Jean Gaulin Refinery<br />
Joined <strong>Valero</strong> in 1998<br />
Throughput capacity: 215,000 barrels per day<br />
Commissioned to produce heavy oil and middle distillates as the largest volume products, the original refinery outside Quebec<br />
City was brought on line in October 1971. Several major upgrades were implemented in 1980 through 1983, and the refinery was<br />
further expanded beyond the year 2000 with a new crude unit, catalytic reformer unit, gasoline desulfurization unit (GDU) and<br />
distillate desulfurization unit. The state-of-the-art facility sits on 370 acres on the south shore of the St. Lawrence River, with<br />
the ability to receive large, single cargoes up to 1 million barrels — a significant advantage over other refineries. The Quebec City<br />
Refinery was purchased from Ultramar Diamond Shamrock in 2001 and renamed the Jean Gaulin Refinery in 2002 to honor the<br />
former UDS chairman and CEO, Jean Gaulin.<br />
54
McKee Refinery<br />
Joined <strong>Valero</strong> in 2001<br />
Throughput capacity: 170,000 barrels per day<br />
Situated on 5,000 acres in the heart of the Texas Panhandle, the <strong>Valero</strong> McKee Refinery has access to crude oil from northern<br />
Texas, Oklahoma, southwestern Kansas and eastern Colorado through an extensive network of crude oil pipelines, making it one<br />
of the most well-connected plants in <strong>Valero</strong>’s system. The refinery began operations in 1933, and was purchased as part of <strong>Valero</strong>’s<br />
acquisition of Ultramar Diamond Shamrock in 2001. Recent upgrades allow Tier II gasoline and diesel production. The refinery is<br />
located in Sunray, Texas, approximately 45 miles north of Amarillo.<br />
55
Memphis Refinery<br />
Joined <strong>Valero</strong> in 2005<br />
Throughput capacity: 195,000 barrels per day<br />
Originally constructed in 1941, the <strong>Valero</strong> Memphis Refinery was purchased in 2005 as one of four assets acquired from Premcor,<br />
Inc. Since that time, <strong>Valero</strong> has invested more than $245 million upgrading the 250-acre site to create a modern and highly efficient<br />
facility. Crude oil is supplied to the refinery through the Capline Pipeline and can also be transported, along with other feedstocks,<br />
by barge. Products primarily are distributed via truck-loading racks at three product terminals, barges, and a pipeline directly to<br />
the Memphis airport. The <strong>Valero</strong> Memphis Refinery is the sole fuel supplier to FedEx.<br />
56
Paulsboro Refinery<br />
Joined <strong>Valero</strong> in 1998<br />
Throughput capacity: 195,000 barrels per day<br />
The <strong>Valero</strong> Paulsboro Refinery dates back to 1917, although no significant structures or equipment remain from that era. Almost<br />
all operating process equipment was installed after World War II and originally was designed to manufacture quality lubricants.<br />
The refinery later expanded to include gasoline production to meet the nation’s energy needs. During the 1970s and 1980s, the<br />
refinery completed grassroots construction on four new process units. Eleven other units were modernized and improved, bringing<br />
the refinery to its current throughput capacity. <strong>Valero</strong> purchased the 950-acre site in southern New Jersey from Mobil Corporation<br />
in 1998, giving <strong>Valero</strong> valuable access to markets in the Northeast and an expanded national presence. The plant is VPP Star Site<br />
certified for safety.<br />
57
Port Arthur Refinery<br />
Joined <strong>Valero</strong> in 2005<br />
Throughput capacity: 310,000 barrels per day<br />
Commissioned in 1901, the <strong>Valero</strong> Port Arthur Refinery was purchased from Premcor, Inc. in 2005 and stands as the oldest site in<br />
the <strong>Valero</strong> system. It sits strategically on 4,000 acres on the Port Arthur Ship Channel, approximately 90 miles east of Houston.<br />
The site has the ability to process 100 percent sour crude oil, 80 percent of which can be heavy sour crude. Major investments<br />
have strengthened its competitive edge, with coker, crude and vacuum unit expansions and a state-of-the-art hydrocracker. The<br />
refinery’s location accommodates its extensive logistics system, which includes access to Gulf Coast water-borne crude oil via the<br />
refinery docks or through the Nederland, Texas, terminals of Sun or Oil Tanking.<br />
58
St. Charles Refinery<br />
Joined <strong>Valero</strong> in 2003<br />
Throughput capacity: 250,000 barrels per day<br />
Located on approximately 1,000 acres, about 15 miles upstream from New Orleans, the <strong>Valero</strong> St. Charles Refinery is one of the<br />
newest refineries in the United States. Its major process units were built in the early 1980s or later. Since acquiring the refinery from<br />
Orion Refining Corporation in 2003, <strong>Valero</strong> has invested more than $1 billion, making the plant also one of the company’s more<br />
complex refineries. The St. Charles facility adds value to the company’s operations by providing intermediate feedstocks to other<br />
<strong>Valero</strong> refineries located along the Gulf Coast. The plant is VPP Star Site certified for safety.<br />
59
Texas City Refinery<br />
Joined <strong>Valero</strong> in 1997<br />
Throughput capacity: 245,000 barrels per day<br />
Purchased Text Here in 1997 as part of the Basis acquisition, the Texas City Refinery dates back to 1908 and was originally built to process<br />
1,500 barrels per day (BPD) of Oklahoma crude oil. The refinery has gone through continuous upgrades and expansions since then.<br />
<strong>Valero</strong> has invested more than $750 million in expansions and upgrades at the plant, most recently completing a new delayed coker<br />
unit and gasoline desulfurization unit. The new units allow the crude units to run lower-value, heavier-gravity crude feedstocks to<br />
produce a large slate of low-sulfur, clean fuels. <strong>Valero</strong> Texas City is located on 290 acres along the Texas City Ship Channel, and<br />
is connected to the <strong>Valero</strong> Houston Refinery by pipeline. It is the first <strong>Valero</strong> refinery to earn VPP Star Site safety status (2002),<br />
including recertifications in 2005 and 2008.<br />
60
Three Rivers Refinery<br />
Joined <strong>Valero</strong> in 2001<br />
Throughput capacity: 100,000 barrels per day<br />
Located halfway between San Antonio and Corpus Christi, Texas, the <strong>Valero</strong> Three Rivers Refinery, began operations in 1974 with<br />
the commissioning of a crude unit and has had several major expansions and upgrades since then. The refinery is located on about<br />
400 acres inside the town of Three Rivers, Texas, and is connected by pipeline to the <strong>Valero</strong> Corpus Christi Refinery complex.<br />
<strong>Valero</strong> acquired the site in 2001 as part of its purchase of six refineries from Ultramar Diamond Shamrock. The refinery holds a<br />
VPP Star Site safety certification and is the recipient of <strong>Valero</strong>’s Chairman’s Safety Award (2002, 2006, 2008) and the Chairman’s<br />
Environmental Award (2007).<br />
61
Wilmington Refinery<br />
Joined <strong>Valero</strong> in 2001<br />
Throughput capacity: 135,000 barrels per day<br />
The <strong>Valero</strong> Wilmington Refinery was commissioned in 1969 and has undergone three major expansions to become a fully integrated<br />
refinery. It also has completed several upgrades to meet clean-fuel standards. Acquired from Ultramar Diamond Shamrock in<br />
2001, the <strong>Valero</strong> Wilmington Refinery processes a blend of California and foreign crude oil, as well as unfinished feedstocks from<br />
local and foreign sources. The refinery also produces 15 percent of the asphalt supply in southern California. It is VPP Star Site<br />
certified for safety and sits on a compact 120-acre site near Los Angeles.<br />
62
<strong>Valero</strong> Logistics Operations<br />
<strong>Valero</strong>’s expertise in logistics and terminal management can be traced back to 1980, when <strong>Valero</strong> Energy began as a natural<br />
gas transportation company and Texas’ largest intrastate pipeline operator. Since then, the division has evolved through several<br />
acquisitions to become the hub for all of <strong>Valero</strong>’s midstream assets. The present-day <strong>Valero</strong> Logistics Operations officially formed<br />
in 2005 with the acquisition of Premcor Inc., and the subsequent divestiture of <strong>Valero</strong> L.P. The division today includes 354 miles of<br />
crude product pipelines, 11 storage facilities, seven truck racks, 160 miles of crude gathering pipelines and four asphalt plants, as<br />
well as the corporate-wide management of all non-Retail related real estate.<br />
63
<strong>Valero</strong> Renewables<br />
Joined <strong>Valero</strong> in 2009<br />
Ethanol Throughput capacity: 3.1 million gallons per day (10 plants)<br />
In 2009, <strong>Valero</strong> acquired 10 world-scale ethanol plants and one development site from VeraSun Energy and Renew Energy LLC,<br />
becoming the first traditional refiner to enter production of ethanol. <strong>Valero</strong> Renewable Fuels consists of plants in Albert City, Iowa;<br />
Albion, Neb.; Aurora, S.D.; Bloomingburg, Ohio; Charles City, Iowa; Fort Dodge, Iowa; Hartley, Iowa; Linden, Ind.; and Welcome,<br />
Minn. A site under development is located in Reynolds, Ind., and one more site (located in Jefferson, Wis.) is expected to be<br />
acquired in early 2010. The operations have created a new department within <strong>Valero</strong> – Alternative Fuels – and continue to pave the<br />
way for new opportunities in the biofuels market.<br />
64
<strong>Valero</strong> Retail<br />
Joined <strong>Valero</strong> in 2000<br />
The purchase of the Benicia Refinery in 2000 added a new pillar to <strong>Valero</strong>’s refining platform — Retail. Specifically, 80 companyowned<br />
stores and a 270-store distribution chain. From there, <strong>Valero</strong>’s retail venture exploded in 2001 with its acquisition of<br />
Ultramar Diamond Shamrock. Approximately 5,000 retail outlets in the U.S. and Canada were added to the fold and prompted<br />
an international rebranding effort in 2005. Today, the company owns nearly 1,000 <strong>Valero</strong> Corner Stores, and manages a branded<br />
wholesale network of about 4,800 outlets in the U.S., Canada and the Caribbean under the <strong>Valero</strong>, Diamond Shamrock, Shamrock,<br />
Ultramar and Beacon brands.<br />
65
CO M M E M<br />
Thirty years after <strong>Valero</strong> began, the company has amassed<br />
Thirty years after <strong>Valero</strong> began, the company has amassed a<br />
Their expertise Their and expertise dedication and has dedication only made has V<br />
<strong>Valero</strong> means so much more than just the place where I work. It is the place<br />
that employs the people I love and who have become my family.<br />
——<br />
Maria Alvarado, 32 years<br />
I have been blessed to work with wonderful group of colleagues and business<br />
associates over the years, and I remember the positive motto, “Tough Times Never<br />
Last, but Tough People Do.” I’ve had a rewarding <strong>Valero</strong> career, and I enjoy work<br />
because of the co-workers and customers I collaborate with on a daily basis.<br />
——<br />
Laura Carreon, <strong>30</strong> years<br />
Today, everyone knows <strong>Valero</strong>, and we’re admired everywhere we do business.<br />
That is in stark contrast to the early years – what transpired from then to now took<br />
a total team effort, from the top of the organization all the way down. It was a major<br />
transformation, and we can all be proud. Congratulations on <strong>30</strong> great years!<br />
——<br />
Bruce Flieller, <strong>30</strong> years<br />
After being at <strong>Valero</strong> for <strong>30</strong> years, all I can say is that I have been very blessed.<br />
I started with a company that made each employee feel they were a big part of its<br />
success. Even though we worked long hours, you couldn’t tell because we worked so<br />
closely together, like a family. I couldn’t have worked for a better company being<br />
surrounded by wonderful people.<br />
——<br />
Lucy Hernandez, <strong>30</strong> years<br />
<strong>Valero</strong> is an extraordinary place, made up of “ordinary people doing<br />
extraordinary things.” It is no wonder <strong>Valero</strong> has thrived over the years, with the<br />
hard work and dedication of its many employees. I consider myself truly privileged<br />
to be a member of the <strong>Valero</strong> family. HAPPY ANNIVERSARY!<br />
——<br />
Cindy Holley, <strong>30</strong> years<br />
Thirty years, what a milestone! Leaving Houston as LoVaca Gathering<br />
Company … arriving in San Antonio, newly named <strong>Valero</strong>! One word made the<br />
trip – pride. It comes to mind every time I think of <strong>Valero</strong>. From attaining the<br />
honor of one of the “100 Best Companies to Work For” to our unparalleled<br />
volunteer presence … PRIDE. Congratulations, <strong>Valero</strong>.<br />
——<br />
Laura Lange, <strong>30</strong> years
O R A T I O N S<br />
a family of employees from virtually every corner of the energy business.<br />
family of employees from virtually every corner of the energy business.<br />
<strong>Valero</strong> only made better. <strong>Valero</strong> Thank better. you for Thank your service. you for your service.<br />
When I was hired by LoVaca Gathering Company in 1976, I remember there<br />
were days when we did not know if we were going to have a job the next day.<br />
Somehow, Bill Greehey was able to pull a small gas transmission company from<br />
near-bankruptcy and created the largest refinery company in North America.<br />
<strong>Valero</strong>’s culture created this great company.<br />
——<br />
Sammy Nieto, 33 years<br />
I have worked for <strong>Valero</strong> and its predecessor my entire 32.5 year career.<br />
<strong>Valero</strong>’s resilience, perseverance and desire to be the best as well as the most<br />
generous to the less fortunate will ensure the future of the company which I plan on<br />
being a part of the rest of my career.<br />
——<br />
Felix Sekula, 32 years<br />
I have been with <strong>Valero</strong> for over 32 years and have been blessed to be able to<br />
enjoy the great times, the good times, and the not-so-good times. I can say without<br />
a doubt that in all of my years with this company, I have absolutely no regrets for<br />
joining this great organization. In fact, the only regret I would have is if I did not<br />
become part of the Family.<br />
——<br />
Dan Stanush, 32 years<br />
When someone has worked in one place for more than <strong>30</strong> years, one might<br />
assume that person doesn’t like change in their lives. In my case, you would be<br />
wrong. My career has provided all of the change I have ever needed in my life. It has<br />
been a wild ride, but I would not have missed it for the world.<br />
——<br />
Bob Wheeler, 32 years<br />
I have truly enjoyed my 38 years working with such dedicated, hard-working and<br />
giving people. And what a ride! I witnessed a troubled natural gas division become<br />
the largest refiner in North America!<br />
——<br />
Emil Wiatrek, 38 years
exCEllenCE REfinED<br />
<strong>30</strong> <strong>Years</strong> of Service… And Counting<br />
49 <strong>Years</strong><br />
Kenneth Young<br />
Frederick Hill<br />
46 <strong>Years</strong><br />
Don Scogin<br />
45 <strong>Years</strong><br />
Dave Phillips<br />
44 <strong>Years</strong><br />
James Timbs<br />
James Howell<br />
Jerry Reyes<br />
David Champagne<br />
Don Williams<br />
Kenneth Romero<br />
43 <strong>Years</strong><br />
Twiggy Ford<br />
Jose Collazo<br />
Marsha Wilson<br />
42 <strong>Years</strong><br />
Raymond Latham<br />
Eva Lara<br />
Johnny Brumley<br />
Clarence Wykoff<br />
Jerome Hickl<br />
Tom Downing<br />
Glenn Hodge<br />
Darby Guillory<br />
Roger Felton<br />
Carl Patten<br />
Renn Taylor<br />
Sheldon Boullion<br />
Robert Nixon<br />
Richard Cross<br />
Marian Elliott<br />
George Papillion<br />
41 <strong>Years</strong><br />
Bill Klesse<br />
Earline Ballou<br />
Robert Trahan<br />
Charles Hamilton<br />
Darrel Champagne<br />
Ronnie Wilkerson<br />
John McKnight<br />
Juan Martinez<br />
Woodrow Guy<br />
Ray Elfstrom<br />
Calvin Whitehorn<br />
Nolan Davis<br />
Curtis Fawvor<br />
Doug LeGros<br />
Thomas Rutledge<br />
Jack Giordano<br />
Hector Molina<br />
John Aycock<br />
Larry Richard<br />
Rufus Williams<br />
James Viltz<br />
JD Wheeler<br />
Calvin Miles<br />
PC Gary<br />
Gary Beckman<br />
Garland Roddy<br />
Carlo Palumbo<br />
Ronald Terry<br />
Cowboy Cardenas<br />
Herman Varela<br />
Don Mannino<br />
Billy Sanders<br />
Willie Lewis<br />
Joseph Jones<br />
Joe Tobin<br />
Jasper Atkinson<br />
Donnie Guerra<br />
40 <strong>Years</strong><br />
Bobby Bruce<br />
Octaive Glass<br />
Alfredo Rodriguez<br />
Cliff Snodgrass<br />
Mark Kavanaugh<br />
James Robinson<br />
Glen Tryer<br />
Oscar Gonzales<br />
John Hart<br />
David Estrada<br />
J R Delarosa<br />
Curtis Hearnsberger<br />
Richard Montez<br />
Allen Dusek<br />
Earl Dickerson<br />
Frank Young<br />
Richard Minter<br />
Bruce Byers<br />
Ruelle Parker<br />
Luis Aguilar<br />
Darrel McNiel<br />
Mike Blacksher<br />
Allen Daigle<br />
Artie Godfrey<br />
Paul Hitt<br />
Lonnie Hammock<br />
Julian Sanchez<br />
Terry Landgraf<br />
Carl Vinson<br />
Anthony Jones<br />
Steve Broaddus<br />
Janie Vaquera<br />
39 <strong>Years</strong><br />
Spencer Comeaux<br />
Richard Wolford<br />
Lofton Robison<br />
Homer Crawford<br />
Robert Havens<br />
Houston Pouncy<br />
Daniel Timms<br />
Marty Lovelace<br />
Margaret Ruggles<br />
Ken Brown<br />
Freddie Quillen<br />
Eddie Hubert<br />
Ben Sam<br />
Jean Hanes<br />
John Locke<br />
Mike White<br />
Charlie Wells<br />
Arthur Richardson<br />
Jessie Castro<br />
Melvin Keller<br />
Hamp Hampton<br />
Emil Wiatrek<br />
Joseph Mastracchio<br />
Clarke Dubose<br />
Buddy Sepeda<br />
Ricky Stone<br />
Mike Travis<br />
Gary Byrd<br />
Bill Deadmon<br />
Alfred Gonzales<br />
Salvatore Pino<br />
Jesus Castillo<br />
David Weidner<br />
Jon Allen<br />
Ronn Mason<br />
Keith Guidry<br />
Winston Pitre<br />
Lewis Petracci<br />
Wayne Villanova<br />
Phil Boyd<br />
Bob Barlow<br />
Thomas Chapman<br />
Brett Monroe<br />
Bernard Ryan<br />
38 <strong>Years</strong><br />
Joe Medrano<br />
Jimmy Nicklebur<br />
Elton Hayes<br />
Russell Marino<br />
Debra Williams<br />
Melvin Goodman<br />
Frank Dean<br />
Lovelace Williams<br />
Rodney Winter<br />
George Randolph<br />
Lloyd Carlie<br />
Bill Quinn<br />
Thomas McCaffrey<br />
Roy Garcia<br />
Samuel Carrow<br />
Joseph Clegg<br />
Michael Duke<br />
Jim Peacock<br />
Frank Richards<br />
Anthony Dobrowolski<br />
Morris Carter<br />
37 <strong>Years</strong><br />
Max Stacy<br />
Juan Rivera<br />
Darby Reid<br />
Billy Cook<br />
James Perdue<br />
Thomas Chas<br />
Pat Kennedy<br />
Edward Majewski<br />
Stephen Briscoe<br />
David Hanson<br />
Lidia Rojas<br />
Willie Griggie<br />
Don Turano<br />
John Pyka<br />
Pat Vitone<br />
Mario Guasco<br />
Ken Lavecchia<br />
Danny Pinkley<br />
Jerry Price<br />
Robert Ruiz<br />
John Buchanan<br />
Santiago Saenz<br />
James Marx<br />
Andy Myrick<br />
Dennis Voelker<br />
James Griscom<br />
Jim Sullivan<br />
Jim Stokes<br />
Louis DiGiambattista<br />
Joe Esquivel<br />
David Park<br />
Richard Nicely<br />
Belita Allen<br />
John Rogers<br />
Lee Getsinger<br />
Ronnie Lasalle<br />
Edward Murphy<br />
William Lindle<br />
Roger Driver<br />
Lloyd Lopez<br />
Darrel Odland<br />
Steve Palacky<br />
James Wilson<br />
James Burt<br />
Linda Hatton<br />
Ron Szopinski<br />
RE Howard<br />
Barney Beesley<br />
David Butler<br />
Steve Peveto<br />
Ricky Robbins<br />
Stephen Jennings<br />
Ruben Daniels<br />
36 <strong>Years</strong><br />
James Dorsey<br />
David Stewart<br />
Bob Richards<br />
Merrill Lankford<br />
Danny Brannan<br />
William Elliott<br />
Arlen Marion<br />
George Cortez<br />
Ronald Stewart<br />
Bill Anderson<br />
Charles Meeks<br />
Yndalecio Zepeda<br />
Loretta Chandler<br />
Regino Trejo<br />
William Smith<br />
Brenda Deremer<br />
James Bowe<br />
Dale Simmons<br />
Robert Cupit<br />
Don Solis<br />
Mike Trahan<br />
David Bryant<br />
Bob Gordon<br />
Joe Sosa<br />
Keith Monroe<br />
Bob Appling<br />
Tony Bramblett<br />
James Truxon<br />
Frank Brigante<br />
Greg Hahn<br />
Steve Heron<br />
Marvin Powell<br />
Robert Hollis<br />
Gordon Jiles<br />
Jim Bottomley<br />
Glenn Stokes<br />
Thomas Cresong<br />
Jay Du Bois<br />
Danny Elrod<br />
Stanley Manel<br />
Rich Marcogliese<br />
Barbara Phillips<br />
Keith Sonnier<br />
Robert Olsen<br />
Montie Kiefer<br />
Robert Armstrong<br />
Harvey Kenyon<br />
Leroy Anderson<br />
Fred Newhouse<br />
James Berger<br />
Bill Weiserth<br />
Jimmy Davis<br />
John Spellman<br />
Roy Poche<br />
Tommy Saulter<br />
Eddy Thibodeaux<br />
Hardner Williams<br />
Henry Yowman<br />
Robert Benoit<br />
John Williams<br />
Joe Clayton<br />
Bob Kuenstler<br />
Ronnie Washburn<br />
John Emley<br />
Eddie Dean<br />
David Barker<br />
Larry Loomis<br />
Dale Portie<br />
Joe Zapotoschny<br />
William Merget<br />
Bill Stott<br />
Allyn Weber<br />
David Gaudet<br />
Lynn Tait<br />
68
Walter Isom<br />
RB Davis<br />
Terry Lavergne<br />
Mike Weber<br />
James Cox<br />
JJ Jeanmard<br />
Mark Martinez<br />
Brant Slaughter<br />
Ray Flores<br />
Charles Neel<br />
Tony Trinidad<br />
George Anderson<br />
Frederick Brander<br />
John Kier<br />
Ray Guidry<br />
Kenny Cram<br />
Allen Ng<br />
Gerald Morin<br />
Bob Peugh<br />
Cynthia Drake<br />
Carlos Sosa<br />
Charles Sterling<br />
Jasper Anniboli<br />
Keith Pousson<br />
Clifton West<br />
Herman Wells<br />
Kris Hernbloom<br />
35 <strong>Years</strong><br />
Andy Moreno<br />
Tom King<br />
Bob O’Neal<br />
Gerald Record<br />
Diana Perez<br />
Steven Pentz<br />
Jeff Rapach<br />
Rebecca Busic<br />
Kenn Higdon<br />
John Brice<br />
Harry Eubank<br />
Ronald Burns<br />
Harold Lee<br />
Stephen Piron<br />
Steven Hicks<br />
Chuck Wueller<br />
Roy Mitchell<br />
Albert Fumuso<br />
Anna Lebouef<br />
David Poole<br />
Lanis Sheffield<br />
Steve Higgs<br />
James Simpson<br />
James Forse<br />
Chuck Mirabella<br />
Sheila Piletere<br />
Marcia Ramsey<br />
C A Jones<br />
Doug Anderson<br />
Mark Godley<br />
David Kimball<br />
Max Morell<br />
Jimmy Thomson<br />
Bobby Pickney<br />
Janice Foret<br />
Billy Best<br />
Bruce Fontenot<br />
Henry Jones<br />
James Cluelow<br />
Ronald Morris<br />
Cindy Gidden<br />
Dwain Kaufman<br />
Tony Gonzales<br />
Kermit McElwee<br />
Otis Fisher<br />
Steve Floyd<br />
Pat Preston<br />
Marc Schomerus<br />
Tony Lawrence<br />
James Dean<br />
Don Burns<br />
Bruce McPherson<br />
Jim Bledsoe<br />
Stan Norman<br />
Tiodulo Rodriguez<br />
Robert Stansbury<br />
Buster Myers<br />
Tommy Tade<br />
Frank Escamilla<br />
Steve Treece<br />
Robert Wilson<br />
Kent Miguez<br />
Richard Savoy<br />
Larry Garrison<br />
Gary Savell<br />
David Tindel<br />
Milby Chauvin<br />
Patrick Miller<br />
Charles Green<br />
Robert Hanks<br />
Nathan Amerson<br />
Edward Thibodeaux<br />
Ben Eaglin<br />
Vincent Fontenot<br />
Kenneth Stubbs<br />
Louis Lincoln<br />
Johnny Maldonado<br />
Mario Minucci<br />
Gary Chasak<br />
Dennis Delcambre<br />
Robert Keller<br />
Glenn Wiltz<br />
Dennis Hahn<br />
Andrew Arredondo<br />
Ernest McLeod<br />
Richard Zapf<br />
Genaro Tamez<br />
Bill Weber<br />
Bob Allen<br />
Donnie Guidry<br />
Mud Williams<br />
Rosemary Smith<br />
Tommy Brown<br />
Horace Boatner<br />
Jack Miller<br />
Tommy Babin<br />
Cass Hebert<br />
Thomas Barnthouse<br />
Mark Griffin<br />
Walter Bower<br />
Clifford King<br />
Manuel Rios<br />
Cynthia Studley<br />
34 <strong>Years</strong><br />
Brent Garvin<br />
Jimmy Bulls<br />
Steve Clegg<br />
Willie Young<br />
Chris Swift<br />
Don Wood<br />
Jesse Harville<br />
Scott Crawford<br />
Mike Ariza<br />
Kevin Thacker<br />
John Watson<br />
Ron McInturff<br />
Alan Finney<br />
Danny Crout<br />
Ricky Davidson<br />
Mark Flurry<br />
Phil Helmke<br />
Horace Meche<br />
Anthony Busceme<br />
Steve Richards<br />
Darlene Sudler<br />
John Saenz<br />
Roger Stewart<br />
Larry Lewis<br />
Brian Skillern<br />
Tod Richman<br />
Jerry Young<br />
William Ginipro<br />
Robert Trotman<br />
Harry Layton<br />
Carrol Price<br />
Bill Kinsky<br />
Joey Lipsett<br />
Ronald Murphy<br />
Paul Siddall<br />
Rene Borrego<br />
Joe Perryman<br />
Jimmy Henry<br />
Fred Price<br />
Bruce Hoelscher<br />
William McElyea<br />
Apolonio Zuniga<br />
Jon Stoffer<br />
Randy Mellinger<br />
Sandy Huff<br />
Mary Wisniewski<br />
Bobby Perkins<br />
Charlie Archibeque<br />
George Rogers<br />
Larry Ganter<br />
Richard Rodriguez<br />
Ronnie Allen<br />
Mary Wycoff<br />
Marie Haden<br />
James McQuary<br />
Michael Clarke<br />
Al Dominic<br />
Terry Godwin<br />
Joe Guidry<br />
David Hebert<br />
Randy Vincent<br />
Tim Williams<br />
Pat Young<br />
Robert Ames<br />
Ellis Thornburg<br />
Larry Jones<br />
Paul Clawson<br />
Fred Ortega<br />
Joseph Wincelowicz<br />
Jim Dismukes<br />
Steven Gibbs<br />
Zachary Mann<br />
Allan Thibodeaux<br />
Doug Weeks<br />
Jim Parker<br />
Steve Howard<br />
James Hughes<br />
Sammy Nieto<br />
W Graves<br />
June Schmitz<br />
John Acey<br />
Steve Broussard<br />
Dewayne Ritchey<br />
Matthew Pino<br />
Anthony De Frank<br />
Richard Meyer<br />
Arturo Lopez<br />
Tim Hague<br />
John Hoffman<br />
John Sammons<br />
Eddie Whitaker<br />
Estella Jackson<br />
Paul Jimenez<br />
Ronnie Pitcher<br />
Mark Prevost<br />
Victor Suire<br />
John Spolitback<br />
Joe Galvan<br />
Danny Potter<br />
Robert Foster<br />
Guy Duhon<br />
Jeff Swearengin<br />
33 <strong>Years</strong><br />
Steve Mulkey<br />
Dale Trayler<br />
Shawn Chisholm<br />
Ricky Mitchell<br />
Stephen Ammann<br />
Mary Lou Gonzalez<br />
William Blanchard<br />
Jerry Morrison<br />
Ellis Johnston<br />
Charles Cerino<br />
Gaylord Jones<br />
Matt Anderson<br />
Maria Alvarado<br />
Jeff Billig<br />
John Stens<br />
Donald Byrd<br />
Ricky Neely<br />
Bobby Sterling<br />
Willard Thompson<br />
Bob Cloud<br />
Steven Pozielli<br />
Wayne Spears<br />
Robert Erickson<br />
Wayne Odom<br />
Pat Jones<br />
Danny Migues<br />
Victor Stevison<br />
Paul Watts<br />
Alvie Brown<br />
Sandra Edwards<br />
Bren Bren Howard<br />
Greig Theriot<br />
Val Williams-Wiltz<br />
Douglas Angelle<br />
Mike Gouthier<br />
Curtis Harrington<br />
Robert Reynolds<br />
Rick Smith<br />
Terry Smith<br />
John Farris<br />
Bill Goff<br />
Mike Procella<br />
Leonard Ramoin<br />
Warren Scoggins<br />
Gary Jackson<br />
Nat Byrom<br />
Jerry Crenshaw<br />
Benjie Simon<br />
Neil Benjamin<br />
Steve Evans<br />
Kenny Robbins<br />
Nancy Marx<br />
Mike Auffurth<br />
Terrell Ross<br />
Sal Galvan<br />
Tracy Mathews<br />
Keith Mullins<br />
Bruce Jennings<br />
Mike Saldana<br />
Richard De Vault<br />
Cecil Baker<br />
Rickie Collins<br />
Rynwick Holland<br />
Gevan Alford<br />
Daniel Stanush<br />
Kevin Huffstetler<br />
Dennis Neeb<br />
Carlos Martinez<br />
Paul Trosper<br />
Pete Salazar<br />
David Villareal<br />
Bill McKey<br />
Debbie Carberry<br />
Albert Gibson<br />
Toby Miller<br />
Charlie Soileau<br />
Gregg Goebel<br />
Anthony Commiato<br />
Mark Skobel<br />
Dane Williams<br />
Ronald Gabriel<br />
John Johnson<br />
Denis Savoy<br />
Phil Johnson<br />
Arthur Cartrite<br />
Bill Eakin<br />
Bobby Garcia<br />
Darian Howarth<br />
Marty Larsson<br />
William Buchanan<br />
John Coleman<br />
Thomas Magri<br />
Frank Marucci<br />
Thomas Weise<br />
John Crochet<br />
Ronnie Koziuk<br />
Vincent Voivedich<br />
Glen Merritt<br />
Felix Sekula<br />
Cynthia Beard<br />
Robert Fite<br />
Eddy Reed<br />
Jimmy Wilson<br />
Carol Bachman<br />
James Scott<br />
Jim Threadgill<br />
Kent Trahan<br />
Richie Williams<br />
Michael Perrone<br />
Calvin Philley<br />
Lonnie Merks<br />
George Hurst<br />
David Madison<br />
Steve Schneider<br />
Leonardo Martinez<br />
Simone Yuan-Newman<br />
Lester Dickinson<br />
David Jones<br />
Robert Esquivel<br />
Sid Ducote<br />
Marvin Gray<br />
Randy Lowe<br />
Ed McCall<br />
Dorothy Williams<br />
Ginger Harris<br />
Steven Peais<br />
Nick Miskofsky<br />
Bob Wheeler<br />
Arturo Bazan<br />
Donna Harris<br />
Clyde Davis<br />
69 <strong>Valero</strong> Lines 3oth anniversary edition
Jerry Odom<br />
Alan Upchurch<br />
Larry Waggoner<br />
Jackie Epperson<br />
Bobby Stewart<br />
Steve Licciardello<br />
Stephen Sagan<br />
Bea Griego-Urias<br />
James Burns<br />
Jerome Martin<br />
Curtis May<br />
Tim Sebastian<br />
Bart Taylor<br />
Sookie Williams<br />
Mike Corbishley<br />
Billy Jarratt<br />
Richard Gaytan<br />
Lorraine Lynch<br />
Gary Ward<br />
Ken Goetz<br />
Tony Dickens<br />
Duane Donovan<br />
Harley Davenport<br />
Pamela Jordan<br />
Sukhbir Lalli<br />
32 <strong>Years</strong><br />
Rohnda Poteet<br />
Stephen Blotzer<br />
Joe Gracie<br />
Larry Odom<br />
Terry Spurlock<br />
Jack Terry<br />
David Thackrey<br />
Rocky Howe<br />
Roger Yeager<br />
Donald Box<br />
Billy Barksdale<br />
Mike Salinas<br />
David Leal<br />
Garry Childs<br />
Dennis Day<br />
Danny Stinson<br />
Sig Berlanga<br />
Morgan Drake<br />
JD Johnson<br />
Jack Williams<br />
Michael Giorgianni<br />
Debbie Knox<br />
Richard Day<br />
Amadeo Garza<br />
William Pratz<br />
Red Curry<br />
Tom Dimbleby<br />
Quin Berry<br />
John Knichel<br />
David Wilson<br />
Stevie Fountain<br />
Ken Witten<br />
Steve Guess<br />
Melvin Brock<br />
Ed Trahan<br />
Larry Fowler<br />
Mike Watkins<br />
Marvin Burns<br />
Barbara Klein<br />
George Elizondo<br />
Tim Ernst<br />
Austin Fontenot<br />
Perry Gray<br />
Randy Prudhomme<br />
Reynaldo Trevino<br />
John Hitchcock<br />
Larry Woods<br />
Ralph Clark<br />
Calvin Harrje<br />
Steve Gage<br />
Jim Keating<br />
Freddy Mendez<br />
Santo Licciardello<br />
Frank Minniti<br />
Robert Peiffer<br />
Susan Barnes<br />
Dan Graber<br />
Rudy Elizondo<br />
Henri McRae<br />
Seth Sadler<br />
Belinda Haecker<br />
Jo Hilderbrand<br />
Vick Pease<br />
Robert Bryant<br />
Mickey Landry<br />
Yvonne Trahan<br />
Jim Wooding<br />
Steve Yeates<br />
Zelly Zelsdorff<br />
Glen Walters<br />
John Valusek<br />
Charles Watson<br />
Doug Comeau<br />
Karen Abendroth<br />
Ron Scoggins<br />
Stanley Lawrence<br />
John Roach<br />
Johnny Santana<br />
Darrell Black<br />
Esther Lamb<br />
Jonathan Retzloff<br />
Kenneth Durham<br />
Micky Parisher<br />
Terry Hughes<br />
Michael Crice<br />
Carlton Baugus<br />
Gabriele Altmann<br />
Debbie Cormier<br />
Don Cuffel<br />
Michael Spina<br />
Carl Stricker<br />
Russ Selkirk<br />
Danny Walker<br />
Fate Bennett<br />
Tom Sullivan<br />
Debbie Landers<br />
Pamala Perkins<br />
Geoffrey George<br />
Nick Guerrero<br />
Willie Thornton<br />
John Vidrine<br />
Larry Hardaway<br />
Mary Birmingham<br />
Edwin Busch<br />
Carol Frank<br />
Kirk Campbell<br />
Donald Ford<br />
Walter Shilo<br />
Brian Thibodeaux<br />
Ken Flotten<br />
Michael Elvert<br />
Sandy Bretzke<br />
Debra Davis<br />
Jim Ivey<br />
Mark Blanton<br />
Randy Jackson<br />
Carl Spiegel<br />
Eddie Phillips<br />
Doyle Seymour<br />
Jerry Kopcho<br />
Ronny Boyd<br />
Ken Iannelli<br />
William Jameson<br />
Albert Leonardi<br />
Thomas Teitman<br />
Brett Anderson<br />
Lonnie Champagne<br />
David Evans<br />
Glenn Foreman<br />
Dolan Jones<br />
Cheryl Mann<br />
Kurt Wolford<br />
Stephen Jennings<br />
Louis Pena<br />
Tom Truitt<br />
Jeffrey Davis<br />
Kenneth Ham<br />
Tony Jones<br />
Barbara Johnson<br />
Jaime Quintanilla<br />
Cho Otero<br />
Issa Konsul<br />
Paul Cain<br />
Ethel Cain<br />
Cong Tavu<br />
Gam Nguyen<br />
31 <strong>Years</strong><br />
QT Freytag<br />
Patrick Fujinaka<br />
Ramon Ramirez<br />
Mike Ramos<br />
Andy Rodrigues<br />
Glenn Royston<br />
Nick Stubblefield<br />
Boyd Tracy<br />
Keith Lewis<br />
Richard Ortegon<br />
Jack Eisenmann<br />
Dan Villanueva<br />
Danny Hanson<br />
Ginger Simpson<br />
Jimmy Lambert<br />
Karin Siegler<br />
Mark Gilly<br />
Stephen Cargill<br />
Ikie Venable<br />
Michael Goring<br />
Cube Manuel<br />
Malcolm Anderson<br />
Junell Anderson<br />
Wayne Enderle<br />
Michael Allen<br />
Jerry Bredehoeft<br />
Donald Fowler<br />
Joseph Rao<br />
Mark Lemmon<br />
Terry O’Conner<br />
Michael Davis<br />
Preston Boyd<br />
Curtis Roberts<br />
Sharon Kaltenbacher<br />
Phillip Barnett<br />
Dorothy Kowalik<br />
Louis Morris<br />
Steve Cockerham<br />
Dave Colten<br />
Tim McMillan<br />
David Merrell<br />
Imelda Santos<br />
Mike Suire<br />
John Tabor<br />
Lester Westmoreland<br />
Mondie Castro<br />
Les Ingram<br />
Joe Allen<br />
Roger Durham<br />
Chuck Elizondo<br />
Bryan Gibson<br />
Denise Otero<br />
John Nichols<br />
Gary Sipple<br />
Paul Yeager<br />
Robert Harding<br />
Patrick Aiken<br />
Ron Benefield<br />
Gregory Fielder<br />
Jerry Arcari<br />
Steve Popp<br />
Glenn Adkins<br />
Mark Ellison<br />
Stephen Hergert<br />
Allan Bell<br />
Benny Perriraz<br />
Pamela Rogers<br />
Rudy Guerra<br />
Max Kazmiroski<br />
Randall Rice<br />
Kevin Golden<br />
Scott Peterson<br />
Homer Smith<br />
Richard Allen<br />
Van Howard<br />
H. Catherall<br />
Terry Holmes<br />
Cora Pena<br />
James Roberts<br />
Patrick Torres<br />
Gary Langley<br />
Steve Grider<br />
Steven DeRoche<br />
Luther Flowers<br />
David McKinley<br />
Floyd Moses<br />
Richard Quintanilla<br />
Scott Newport<br />
Howard Rusche<br />
Charlie Whigham<br />
Tommy Wright<br />
Darryl Campbell<br />
Donald Getsinger<br />
David Orens<br />
Kenneth Valdez<br />
Deborah Lynch<br />
Greg Temple<br />
Jerry Cook<br />
John Hornstra<br />
Cecilia Toudouze<br />
Harold Schweitzer<br />
Earle McCants<br />
George Spencer<br />
Luis Benavides<br />
Bruce Flieller<br />
Chris Anderson<br />
Kurt Dore<br />
Jimmy Prescott<br />
Daniel Watson<br />
Jimmy Welch<br />
Ramiro Tanguma<br />
Craig Hilburn<br />
M Moseley<br />
Calvin Moss<br />
Larry Twyford<br />
Richard Push<br />
Michael Frei<br />
JoAnn Underkoffler<br />
Randy Dickey<br />
Robert Mitchell<br />
Ricardo Rosas<br />
Brian Miller<br />
Tony Arena<br />
Mike Miller<br />
Carl Woodall<br />
Richard Draper<br />
Reymundo Garza<br />
William Griffin<br />
Edward Broomall<br />
Jim Dunn<br />
Monte Stapleton<br />
Bubba Porter<br />
Kent Aguillard<br />
Leonard Casmore<br />
Gilbert Olivarez<br />
Sam Jackson<br />
Lee Brakebill<br />
Simeon Urenda<br />
JR Martin<br />
Mark Cranmer<br />
Cindy Holley<br />
Laura Lange<br />
Laura Carreon<br />
Jim Koehl<br />
Dennis Collins<br />
Kirk Conaway<br />
Kenneth Gardy<br />
Thomas Howell<br />
Terry Kavanaugh<br />
John Morency<br />
Frank Ott<br />
Larry Cane<br />
Mark Decuir<br />
Doris Jones<br />
Robert Licatino<br />
Jay Mendoza<br />
Tony Montoya<br />
Jeff Rinehart<br />
John Vandiver<br />
Drake Romero<br />
Steven Milam<br />
Roger Spenrath<br />
Larry White<br />
Bruce Huffman<br />
Rick Osborne<br />
Kirk Hewitt<br />
Nathan Sampson<br />
Louis Sbabo<br />
Richard Vandernaald<br />
Willie Freeze<br />
Frank Gladu<br />
Derrile Leblanc<br />
Doris Thomas<br />
Candy Alpan<br />
Kim Broussard<br />
Chris Bullion<br />
Paul Collins<br />
Lionel Ford<br />
Mike Foster<br />
Kendall Green<br />
Richard Hancock<br />
Danny King<br />
Keith Lee<br />
Ed Moton<br />
Earnest Shields<br />
Angeline Valsin<br />
David Ivey<br />
Clayton Kemp<br />
Dennis Hokanson<br />
John McLaughlin<br />
Ronnie Hatter<br />
Ricky Darbonne<br />
Philip Berry<br />
Stephen Hendricks<br />
Dennis Minix<br />
Ron Kooy<br />
Douglas Foots<br />
Sam Cavallo<br />
Domenick Muraca<br />
70
Michael Pantaleone<br />
Johnny Mika<br />
David Morton<br />
Ruben Reyna<br />
Butch Domangue<br />
Jeffrey Seeger<br />
Calvin Reyes<br />
Eric Broussard<br />
David Landrum<br />
Mike York<br />
Richard Herrera<br />
Buster Schapper<br />
Yogi Ybarra<br />
Luz Hernandez<br />
Edward Carl<br />
Nino Garozzo<br />
Lee Hasler<br />
Timothy Owen<br />
Dale Curtis<br />
Luigi Segreto<br />
Eugenia Rogers<br />
<strong>30</strong> <strong>Years</strong><br />
Sonny Menzel<br />
Dan Rubio<br />
Bill Schroll<br />
Bill Sharp<br />
David Wulfe<br />
Craig Stanich<br />
Jerry Bailey<br />
Kelly Merrill<br />
Betty Berger<br />
Dan Ross<br />
David Woodward<br />
Manny Martinez<br />
John Sauceda<br />
Steve Wicke<br />
David Gonzales<br />
Paul Chavez<br />
George Conde<br />
Steven Payne<br />
Isagani Paparro<br />
Thomas Love<br />
Joe Roznovsky<br />
Arturo Flores<br />
Mike Butler<br />
Patsy Benchoff<br />
Dave Larue<br />
Sam DeGeorge<br />
Vincent Gasparovic<br />
Jeff Platt<br />
Jackie Kiser<br />
Keith Rutherford<br />
Israel Cruz<br />
Thomas Marks<br />
Patrick Walls<br />
Jimmy Antuna<br />
Thomas Barca<br />
Richard Dentino<br />
Angel Pizarro<br />
Yolanda DeVore<br />
Peggy Cannefax<br />
Theo Guidry<br />
William Allen<br />
Mark Mundine<br />
Larry Walker<br />
Bruce Luerson<br />
Larry Smith<br />
Keith Smith<br />
Jeffery Ritz<br />
Johnny Wright<br />
Oscar Benavidez<br />
Hilario Herrera<br />
Randy Shields<br />
George Alston<br />
Dennis Cyr<br />
Lee Stanley<br />
William Hughes<br />
Jodi Christiansen<br />
Blake Middleton<br />
Terry Speed<br />
Raul Molina<br />
Roy Rosas<br />
Frances Boone<br />
Roy Martin<br />
Bill Bartleson<br />
Nelse Geary<br />
Douglass Hansen<br />
Eric Little<br />
Thomas Lucas<br />
Greg Ratliff<br />
Joseph Tierno<br />
Larry Rojas<br />
Debbie Ewald<br />
Jim Kuhl<br />
Kimberly Mazac<br />
Rich Young<br />
Ron Eaves<br />
Shane Johanson<br />
Gary Muniz<br />
Steve Aune<br />
Ruben Velasquez<br />
Darrell Williams<br />
Ashley Easterling<br />
Joseph Sodomin<br />
Michael Fischer<br />
Patrick Dougherty<br />
Gary Lively<br />
Ellen Jourdan<br />
James Arney<br />
Bert Heer<br />
Francis Mc Gee<br />
Dominic Meduri<br />
Charles Vasta<br />
Dave Beck<br />
Anita Mokienko<br />
Gary Dillon<br />
Roque Serna<br />
Russell Dillon<br />
Carl Bakley<br />
Donna Gonzalez<br />
Mark Griffin<br />
Karl Hilton<br />
James Jones<br />
Robert Sterling<br />
Marsha Bradley<br />
Ronald Reagan<br />
Rich Horbiak<br />
Beverly King<br />
Alan Pool<br />
Rosemary Lee<br />
Christine Trinidad<br />
Darryl Beckett<br />
Paul Evans<br />
Kenneth Sanford<br />
Maggie Perkins<br />
Eric Olsen<br />
Eddie Erickson<br />
Joey Burnaman<br />
Jack Chichester<br />
Albert Ruiz<br />
Wayne Little<br />
Ray Garcia<br />
Bubba Gordon<br />
Jaco Jaco<br />
Jack Mann<br />
Phil Parmenter<br />
William Spain<br />
Rex Keister<br />
Kenneth Fuller<br />
Thomas O’Reilly<br />
Johnny Bean<br />
Race Copeland<br />
Danny Callahan<br />
Calvin Lindeburg<br />
Darrell Dugas<br />
Craig McBroom<br />
Mitchell Powell<br />
Gary Brooks<br />
Robert Hall<br />
Teresa Guzman<br />
Nanette Baumgardner<br />
Steven Mc Anally<br />
Russ Schott<br />
Kerry Koneman<br />
Jose Vargas<br />
Greg Jackson<br />
Derrell Lackey<br />
Thomas McKeehan<br />
Kenneth Pearson<br />
Kevin Williams<br />
Terry Jansen<br />
Patrick Copeland<br />
Dennis Hatfield<br />
Alfredo Pena<br />
David Cleveland<br />
Stephen Alvillar<br />
Mark Calkins<br />
Robert Van Druff<br />
Robert Pena<br />
Ralph Messick<br />
Larry Huwe<br />
Burt Tuttle<br />
Victor Guevara<br />
John Petrylak<br />
Miguel Garcia<br />
Roger Brittain<br />
Dean Gilman<br />
Larry Gutierrez<br />
Kris Wannberg<br />
Richard Hutson<br />
Mike Olivares<br />
David Runcie<br />
Lushile Bruchmiller<br />
Richard Fetters<br />
Edwin Wyckoff<br />
Larry Lenz<br />
Steve Parker<br />
Jerry Munson<br />
Carl Short<br />
Gloria Chavez<br />
Maria Cramer<br />
Maria Medina<br />
Gary Arrant<br />
Kebede Beyene
<strong>Valero</strong> McKee Refinery<br />
VALERO ENERGY CORPORATION<br />
Post Office Box 6960000 • San Antonio, Texas 78269-6000