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Trodella & Lapping LLP

540 Pacific Avenue

San Francisco, CA 94133

Winston & Strawn LLP

101 California Street

San Francisco, CA 94111-5802

Richard A. Lapping (SBN: 107496)

Trodella & Lapping LLP

540 Pacific Avenue

San Francisco, CA 94133

Telephone: (415) 399-1015

Facsimile: (415) 651-9004

 Rich@TrodellaLapping.com

Attorneys for Valero Refining Company-California 

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION

In re:

PG&E CORPORATION,

-andPACIFIC GAS & ELECTRIC COMPANY,

Debtors.

□ Affects PG& Corporation

■ Affects Pacific Gas and Electric Company

□ Affects both Debtors

* All papers shall be filed in the Lead Case,

No. 19-30088 (DM).

Case No.: 19-30088-DM

Chapter 11

SUPPLEMENT TO MOTION FOR RELIEF 

FROM STAY BY VALERO REFINING 

COMPANY-CALIFORNIA 

[Relates to Docket No. 315]

Date: September 10, 2019

Time: 9:30 a.m.

Place: Courtroom 17

450 Golden Gate Avenue, 16th Floor

San Francisco, California

Judge: Hon. Dennis Montali

Creditor Valero Refining Company-California (“Valero”) hereby submits this supplement to 

its Motion for Relief from Stay (the “Motion”) pursuant to the Court’s Memorandum Decision dated 

May 13, 2019 [Docket No. 1982] (the “May 13 Decision”) that declined to grant the Motion at that 

time and continued the hearing on the Motion to September 10, 2019. 

BACKGROUND

By way of brief review, on February 5, 2019, Valero filed the Motion seeking relief from 

stay as to Pacific Gas & Electric Company (the “PG&E”). Specifically, Valero seeks relief from the 

automatic stay to allow the completion of pretrial proceedings, trial, post-trial motions and any 

Case: 19-30088 Doc# 3609 Filed: 08/20/19 Entered: 08/20/19 11:20:49 Page 1 of

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Trodella & Lapping LLP

540 Pacific Avenue

San Francisco, CA 94133

appellate proceedings in or in connection with VALERO REFINING COMPANY-CALIFORNIA, a 

Delaware corporation v. PACIFIC GAS & ELECTRIC COMPANY, a California corporation, 

pending as Case No. 2:17-cv-01350-TLN-EFB in United States District Court for the Eastern 

District of California before the Honorable Troy L. Nunley, United States District Judge (the 

“District Court Action”). 

The District Court Action arises out of an incident on May 5, 2017 in which Valero alleges

that PG&E breached its duties, contractual and otherwise, resulting in a complete power outage to 

Valero’s Benicia refinery, leading to damages to Valero in excess of $75 million, well above 

PG&E’s self-insured retention. 

The District Court Action was commenced on June 30, 2017. PG&E filed its answer and 

demand for jury trial on October 23, 2017. There are no counterclaims or crossclaims against third 

parties. The District Court set the case for jury trial for June 3, 2019, but the case has been stayed 

due to the bankruptcy filing. 

The Court continued the Motion twice, first to April 24, 2019 (after which the parties 

stipulated to continue to May 9, 2019) and then to September 10, 2019. 

RECENT DEVELOPMENTS

Since the May 9 hearing and the Court’s May 13 Memorandum of Decision, Valero and 

PG&E have agreed to participate with representatives of PG&E’s insurers in a mediation of Valero’s 

claims before Kenneth D. Gack of JAMS in San Francisco on October 22, 2019 (the “Mediation”). 

As the Court will appreciate, the date of the Mediation is the day following the Bar Date for filing 

proofs of claim. 

RELIEF SOUGHT

Based on the parties’ agreement to the Mediation, and reserving all rights and arguments as 

set forth in the Motion, Valero modifies its request for relief from stay as follows: 

1. To the extent that the automatic stay applies to the Mediation or the participation by 

Valero or PG&E in the Mediation or any continuation thereof, that the automatic stay be modified to 

permit the Mediation and the continued participation by Valero and PG&E therein.

2. That the Court find that any filing by Valero of a Proof of Claim in this Case shall not 

Case: 19-30088 Doc# 3609 Filed: 08/20/19 Entered: 08/20/19 11:20:49 Page 2 of

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Trodella & Lapping LLP

540 Pacific Avenue

San Francisco, CA 94133

operate to cause a waiver of Valero’s (or PG&E’s) right to a jury trial in the District Court Action, 

which right shall be preserved to the fullest extent of the law. 

3. To reduce litigation expense in the District Court Action while the parties engage in 

Mediation, that the Motion be granted forthwith, with waiver of any stay under Federal rule of 

Bankruptcy Procedure 4001(a)(3), but with the stay lifted effective as of November 25, 2019, which 

date is five weeks after the start of the Mediation. 

Valero submits that granting the Motion effective on a date shortly after the Mediation 

commences will provide needed incentive for the parties to reach agreement on a settlement but at 

the same time free the parties from the need to litigate in the District Court Action while the 

Mediation is underway. 

For all the reasons stated in the papers submitted by Valero, and recognizing that Valero has 

made a prima facie showing for relief from stay, the Motion should be granted as modified herein. 

Dated: August 20, 2019 TRODELLA & LAPPING LLP

By: /s/ Richard A. Lapping 

Richard A. Lapping

Attorneys for Valero Refining 

Company-California

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