Phillips 66, a Texas-based oil corporation, has faced federal indictment for alleged breaches of the Clean Water Act in California, as outlined by officials on Thursday.

The company is accused of releasing numerous gallons of industrial wastewater that contained high levels of oil and grease, as stated by the U.S. Department of Justice. It is reported that the wastewater, which was dumped from Phillips’ oil refinery in Carson, made its way into the sewer system of Los Angeles County during the years 2020 and 2021, without the company notifying authorities of the violations.

Phillips 66 has been charged with two counts of negligent violations of the Clean Water Act and an additional four counts related to intentional violations of the law. Consequently, the company could serve up to five years of probation for each count and is potentially facing fines totaling around $2.4 million.

As of now, an arraignment date remains unspecified. There has been no response to inquiries directed to the company’s media relations team regarding the matter on Thursday.

In a related development, Phillips 66 revealed last month its intentions to shut down its Southern California refinery by the close of 2025, citing concerns related to market dynamics. This particular facility contributes roughly 8% to the total refining capacity within California, as reported by the state’s Energy Commission.

Additionally, the company manages a refinery located near San Francisco, which adds approximately 5% to California’s refining capacity, according to the state Energy Commission.