08:14 AM EDT, 08/15/2024 (MT Newswires) -- Chevron ( CVX ) has agreed to pay $550 million over the next 10 years to the City of Richmond in California in exchange for the city's withdrawal of a ballot initiative to add a new tax, the city council said Wednesday.

The energy giant had challenged the 2024 Tax Ballot Initiative and believed it may have options to "challenge the ordinance itself," the council said.

Under the terms of the settlement agreement Wednesday, Chevron ( CVX ) would make annual payments starting July 1, 2025 and ending June 30, 2035. Chevron ( CVX ) would pay $50 million a year from 2025 to 2029 and $60 million from 2030 through 2034, according to Richmond.

Chevron ( CVX ) did not immediately respond to MT Newswires' request for comment.

Price: 145.29, Change: +0.62, Percent Change: +0.43