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Chevron to pay over US$13 million in settlement for California oil spills
Kaieteur News – Chevron Corporation, one of the largest oil companies in the world, has reached a settlement with California state agencies, agreeing to pay over US$13.1 million for past oil spills in Kern County, Bakersfield. The California natural resources agency disclosed this agreement last Wednesday, marking a notable development as the state intensifies its regulations amid environmental concerns.
Chevron is currently in a legal battle against U.S. oil giant ExxonMobil and China’s CNOOC over the prolific Stabroek Block located offshore Guyana.
According to a recent report by Reuters, Chevron, which had previously covered the cleanup costs for the spills occurring in 2019, will allocate US$5.6 million to the California Department of Conservation and US$7.5 million to the California Department of Fish and Wildlife (CDFW).
The spills in 2019 resulted in a minimum discharge of 800,000 gallons of oil and water into a creek bed in Kern County, as reported by local media.
The settlement represents the largest fine to date for these two California state departments, underlining the gravity of the environmental impact caused by the spills.
Chevron, in response to inquiries from Reuters said, “The settlements demonstrate our continuing commitment to take action to address issues and prevent similar incidents in the future.”
Of the funds collected from Chevron, US$5.6 million will be directed towards ongoing efforts to seal old and abandoned wells, while US$7.5 million will be allocated for environmental enhancement projects, wildlife response preparedness, and future spill response funding.
According to the CDFW’s documentation, Chevron was responsible for over 70 oil spills in Kern County between 2018 and 2023, amounting to more than 446,600 gallons (approximately 10,633 barrels) of oil spilled during this period.
This settlement comes amidst California’s robust efforts to combat climate change. Major oil companies like Exxon and Chevron have recently made substantial write-downs, totaling US$5 billion, to adjust for impaired assets in California, reflecting their discontent with the state’s regulatory policies. Reuters reported that official remarks from both companies show their discontent with the state’s regulatory policies.
California has a history of grappling with oil-related environmental disasters, ranging from the oil well blowout in Santa Barbara in 1969 to more recent incidents such as Amplify Energy’s offshore spill in 2021, which led to a US$50 million settlement. In response to these environmental challenges, the state has pursued legal action against major oil companies, accusing them of downplaying the risks associated with fossil fuels.
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