Valero Energy subsidiary The Premcor Refining Group, Inc., which owns the Delaware City Refinery, agreed to pay more than $6 million in fines, system improvements and environmental projects to settle allegations of water and air pollution and hazardous waste violations. The Delaware Department of Natural Resources and Environmental Control alleged several instances of noncompliance occurred at the refinery between May 2004 and September 2006. Premcor will pay administrative penalties of $425,000 for the alleged air pollution violations and $30,000 for the alleged hazardous waste violations; spend approximately $4.5 million on improvements and upgrades to its equipment, and spend an estimated $1.3 million on environmental improvement projects. Valero Energy acquired Premcor and its subsidiaries in September 2005.