Greka Energy
| File:Greka Energy, Logo 2022.svg | |
| Company type | Privately held company |
|---|---|
| Industry | Petroleum industry Mining |
| Founded | 1999 (Saba; Horizontal Ventures) |
| Headquarters | Santa Maria, California, U.S. |
Area served | Central California |
Key people | Randeep Grewal, Owner and CEO Andrew DeVegvar, President |
| Products | Petroleum Asphalt Emulsion |
Number of employees | 200 |
| Website | www |
Greka Energy, officially known as HVI Cat Canyon Inc., operates as a privately held company focusing on the exploration of hydrocarbons, predominantly within Santa Barbara County, California. Founded in 1999 through the consolidation and acquisition of smaller enterprises, it functions as a subsidiary under Greka Integrated, Inc., headquartered in Santa Maria, California, and is entirely owned by business executive Randeep Grewal.
In May 2011, the organization transitioned its name from Greka Oil & Gas Inc. to HVI Cat Canyon Inc.
After incurring substantial penalties imposed by the United States Environmental Protection Agency (EPA) and the United States Department of Justice (DOJ) due to oil spill violations, the firm filed for bankruptcy protection in June 2019.
Greka’s operations revolve around petroleum production and asphalt manufacturing throughout California, with holdings located in Santa Barbara, Ventura, Kern, and Orange Counties. It commands the largest share among onshore oil producers within Santa Barbara County.
Despite its market presence, by 2008 regulatory authorities at both state and federal levels identified the company as "California's leading inland oil polluter" following multiple environmental infractions.
China-based affiliate
During its period as a publicly traded entity in 2002–2003, Greka included China-based operations which were subsequently spun off into Green Dragon Gas (listed on the London Stock Exchange as GDG), predominantly owned and managed by founder Randeep Grewal. Established in 2006 in Hong Kong, Green Dragon Gas specializes in extracting coal bed methane within China.
History
Initially incorporated in Colorado in 1988 under the name Kiwi III, Ltd., the company later became Petro Union, Inc. before declaring bankruptcy in 1996.
In 1998, Randeep Grewal acquired Petro Union’s assets through Horizontal Ventures, a private investment vehicle. The following year, he also purchased assets from Saba Petroleum—founded in 1981—and merged these entities to create Greka Energy, focusing on profitable oil and gas ventures.
By 2000, Grewal articulated the company’s guiding principle: "Working for Profits." Expansion continued with acquisitions such as Windsor Energy US Corporation and Rincon Island Limited Partnership in 2002, securing valuable properties in Ventura County. That same year included acquiring Vintage Petroleum’s northern Santa Barbara County assets, adding roughly 110 producing wells across five oil fields.
By 1999, Greka possessed assets spanning Canada, Colombia, Indonesia, China, and U.S. states including California and Texas—highlighting a diversified international portfolio.
In 2003, Grewal privatized the company by buying all outstanding shares for $32 million. Although Saba Enterprises filed for bankruptcy in 2005, Greka maintained control over its producing operations and asphalt plant outside of liquidation proceedings.
In January 2008, former CFO Andrew deVegvar was promoted to president and launched the "Greka Green" initiative aimed at enhancing environmental stewardship. The company also engaged ex-FBI agent Tom Parker as a corporate security advisor to investigate sabotage incidents affecting operations amid heightened political scrutiny.
In August 2008, Greka resolved a $5 million lawsuit concerning mineral rights transfers related to Cat Canyon Field leases. The dispute involved production rights transferred from Vintage Petroleum without trustee consent but represented a relatively small portion of Greka’s local holdings.
The economic downturn during the Great Recession caused oil prices to decline sharply, resulting in a workforce reduction of approximately 20% (around 30 employees) at the Santa Maria facility by March 2009.
In May 2011, the firm reverted its corporate name to HVI Cat Canyon, Inc., reconnecting with its historical roots tied to East Cat Canyon Oil Field operations—a name previously used before the 1999 merger that formed Greka Energy from Horizontal Ventures and Saba Petroleum.
Asphalt refinery
Greka operates an asphalt refinery located northwest of Santa Maria within the Santa Maria Valley oil field. This facility processes heavy crude oil sourced from Greka's North Belridge operations and other sites, particularly during periods of low oil prices. The refinery has a capacity to refine approximately per hour, separating heavy crude into various distillates and heavier fractions, with products transported primarily by truck. Its output includes asphalt, naphtha, asphalt emulsion, and gas oil, with some distillates utilized as diluents in local enhanced oil recovery efforts.
Constructed in 1935 prior to the establishment of county zoning regulations, the refinery is uniquely situated amidst agricultural lands. Previous proprietors included Conoco and Saba; Greka acquired the refinery in 1999 as part of its purchase of Saba’s assets. Following safety inspections and equipment upgrades completed by 2004, Greka commenced a planned decade-long modernization project in 2005, which also involved obtaining a wastewater treatment permit allowing reuse for irrigation purposes.
The refinery functions as a strategic asset that hedges against volatile oil prices: during periods of rising prices, Greka markets heavy crude directly, whereas when prices decline, it converts the crude into asphalt products that maintain consistent market value. In 2002, Greka estimated about of recoverable heavy crude from shallower formations such as the Sisquoc Formation. These reserves had been largely neglected by major oil companies focused on deeper, lighter oil deposits from the 1920s through the 1980s, leaving behind resources well-suited for Greka’s asphalt production.
Onshore oil production
As of early 2009, Greka maintained onshore oil extraction operations across four counties in California: Santa Barbara, Kern, Ventura, and Orange. Major fields under its control include Santa Maria Valley, Casmalia, Zaca, Cat Canyon (all within Santa Barbara County), North Belridge (Kern County), and Richfield (Orange County). These assets underpin Greka’s integrated approach combining both extraction and refining activities.
Rincon Island former operations
Rincon Island, California, an artificial island situated approximately one mile offshore in Ventura County, was acquired by Greka in 2002 through Rincon Island Ltd. Partnership. Established in 1958, the island lies within State PRC Lease 1466 in the Rincon Oil Field.
In January 2008, Greka voluntarily closed the causeway leading to Rincon Island to address storm-related damage, halting production due to the absence of alternative means to transport oil. By early 2009, around 20 wells remained active inside the island’s enclosed perimeter. In 2016, Rincon Island Limited Partnership filed for bankruptcy to avoid mandated environmental cleanup responsibilities. Ownership was transferred to the state via quitclaim deed in December 2017.
Oil spills and environmental compliance issues
Greka entered Santa Barbara County in 1999 by acquiring aging oil infrastructure left by departing operators. By 2009, only Chevron Corporation and Aera Energy LLC continued as major operators at Cat Canyon Oil Field.
Between 1999 and 2008, more than 400 waste leaks and spills triggered numerous regulatory actions against Greka. The EPA imposed a $127,500 penalty in 2006 for improper industrial wastewater disposal violating the Safe Drinking Water Act. In 2007, Greka faced a $1 million fine for similar violations along with submitting false statements to the EPA.
Significant spills include over discharged at Bell Lease in December 2007 and approximately contaminating Zaca Creek in January 2008. Some incidents were attributed by Greka to sabotage.
By early 2008, cumulative liquid spills by Greka in Santa Barbara County since privatization in 2003 totaled roughly . In response, Greka launched its "Greka Green" initiative aimed at environmental improvements through infrastructure repairs.
Despite these efforts, beginning in 2008 the EPA repeatedly assumed direct control over cleanup operations due to inadequate company responses. The EPA criticized Greka’s remediation methods and replaced its contractors for failing federal standards. Congressional representatives expressed concern regarding Greka’s environmental practices.
In October 2008, EPA again took charge of cleanup at the Gato Lease site and sought cost recovery from Greka for expenses incurred.
Legislative measures followed with Assembly Bill 1960 introduced in 2008 targeting facilities with recurrent environmental violations like those found at Greka sites.
In January 2009, Greka filed suit against Santa Barbara County contesting enforcement actions; however most claims were dismissed.
By July 2009, the California Regional Water Quality Control Board recommended prosecuting Greka for repeated spills exceeding since 2003 along with fines surpassing $2.6 million.
In March 2011, Greka agreed to a settlement paying $2 million through 2014 related to spills occurring in late 2007 and early 2008 involving more than 1,700 violations and committed to upgrading infrastructure.
Federal and state agencies filed suit against Greka in June 2011 seeking over $2.4 million for Clean Water Act breaches citing multiple spills between 2005 and 2010.
Between 2015 and 2017, Greka accounted for the majority of environmental violations and fines issued among Santa Barbara County oil operators.
In May 2018, the California Department of Conservation imposed a record $12.5 million penalty on Greka for nearly 1,500 operating violations at an Orange County oil field.
Federal EPA agents executed search warrants at Greka’s facilities in December 2018; by February 2019 the EPA mandated soil and groundwater contamination testing at company sites.
Later incidents included an August 2019 asphalt leak at its Sinton Road refinery and a November 2019 spill releasing up to ten barrels of oil at a former facility on Black Road within Santa Barbara County.
Public relations
The organization appointed former Santa Barbara County Supervisor Mike Stoker as their spokesperson, capitalizing on his regional connections prior to his 2018 appointment at the EPA. Additionally, in 2008, they brought on Tony Knight from the PR agency Sitrick and Company to strengthen their corporate communication efforts.