CLAIMS by Valero Energy UK Ltd, the company operating Pembroke refinery, that it is not being prosecuted by HSE over a fatal blast in 2011 have been contradicted by the Health and Safety Executive.

But the incident clearly took place when Chevron was at the helm – so why is Valero being prosecuted, whilst Chevron is not?

The answer is about corporate structures, and the law governing companies.

Chevron Corporation in the USA will not face prosecution, as it sold the company which operated the oil refinery to Valero Energy Corporation, another American firm, in 2011, two months after the explosion which killed four people.

That operating company, which was originally founded in 1916 as Texaco Limited, became Chevron Limited in 2006, and then Valero Energy Limited on 10 August 2011.

On 31 December 2013 Valero Energy Limited became Valero Energy UK Limited during a corporate restructuring exercise.

In effect, the company Chevron Limited, which was the company operating on behalf of the American oil giant in the UK is still operating, under its new name Valero Energy UK Ltd.

In law, a company is a legal person, meaning it can be prosecuted and found guilty of an offence, just like a real person. Even if a person changes his or her name, a prosecution can still be brought for an alleged crime before the name change.

In this case, the companies being prosecuted by HSE are B & A Contracts Limited, and the firm founded 1916 as Texaco Limited which is now called Valero Energy UK Ltd. If you think that is confusing consider that the refinery is now being run by Valero Energy Limited, a different legal entity to Valero Energy UK Limited – but both still owned by Valero in the USA.

If they were being accurate, Valero would have to admit they were being prosecuted – but as one company they own, but as another, and that Chevron Corporation is completely home and dry.

Confirming that there had been confusion regarding who exactly was being prosecuted, a spokesperson from the Health and Safety Executive told The Herald: “Valero Energy UK Limited is one of the companies that HSE is prosecuting. The company number is 00145197. That company was previously named Valero Energy Limited and previous to that Chevron Limited. It should be noted that the current operator of the refinery now is Valero Energy Limited, which is a different legal entity.”

A Valero spokesperson said: “We can confirm we have been informed that the Health & Safety Executive is to bring proceedings against Chevron in relation to the incident at Pembroke Refinery in 2011.”

“Valero itself is named as a party to the proceedings simply because of its subsequent acquisition of the refinery.”

The Herald does not agree that proceedings are being taken against Chevron in any way.

The families have been asked for a comment.