PORTLAND, Ore. (KOIN) — Portland’s auditor has determined a fossil fuel company violated city code when it failed to report lobbying with public officials.

City Auditor Simone Rede issued Zenith Energy, the company with a fuel storage facility along Northwest Front Avenue, a warning letter on Tuesday.

The letter notes the Portland Bureau of Development Services previously denied the Land Use Compatibility Statement that Zenith needed to renew its air quality permit. In August 2021, the bureau explained the LUCS was denied due to the “potential impacts of the facility’s operations on the environment and on historically marginalized groups.”

The fossil fuel company engaged in lobbying activity multiple times between July 29, 2022 and Oct. 3, 2022, according to the letter. The activity included meetings with the development services bureau, a text with BDS Director Rebecca Esau, and a tour of Zenith’s Portland facility that City Commissioners Dan Ryan and Carmen Rubio both attended.

Also on Oct. 3, 2022, BDS announced Zenith’s LUCS had been approved after the company committed to phasing out crude oil transports, removing a number of storage tanks, disabling multiple railcar spots and more.

According to City Auditor Rede, the Elections Office received the initial complaint about the fossil fuel company’s lobbying in August 2023. Although the office recorded Zenith’s lobbying activity from the fourth quarter of 2021 and through the first quarter of 2023, officials said the company only violated city code in the third quarter of 2022 — when its lobbying activity exceeded eight hours.

“Portlanders can thank the complainant for raising their concern to the City Elections Office,” Rede said in a statement. “The public deserves to know who is trying to influence City decisions. That’s why lobbyist registration and reporting requirements exist.”

In response to the auditor’s initial findings, Zenith claimed its actions did not constitute as lobbying per the city’s definition. Specifically, the company argued that its terminal tour aimed “to correct misinformation from bad press” rather than convince officials to approve its LUCS.

Zenith won’t be required to pay a fine for violating city code, but Rede advised it to train its staff on local lobbying regulations.

“While we disagree with the Auditor’s conclusion, we appreciate her recognition that this is Zenith’s first violation, we cooperated fully with the investigation, and there was a low volume of perceived lobbying activity during the time in question,” Chief Commercial Office Grady Reamer said in a statement. “As we continue to replace crude oil with renewable fuel at our terminal, we will fully adhere to any regulations governing communications with the City.”