March 21 (Reuters) - Chevron ( CVX ) will pay $13.1
million in settlement agreements with two California state
agencies for past oil spills in Kern County, Bakersfield, the
California natural resources agency said on Wednesday, as the
major oil producing state strengthens regulations.
Chevron ( CVX ), which has already paid for the cleanup costs for
its oil spills in 2019, will pay $5.6 million to the California
Department of Conservation, and $7.5 million to California
Department of Fish and Wildlife (CDFW), the agency said in a
statement.
Chevron ( CVX ) spilled a minimum of 800,000 gallons of oil and
water into a creek bed in Kern county in 2019, according to
local media.
The state agency's report says that this is the biggest fine
to date for the two departments in California.
"The settlements demonstrate our continuing commitment to
take action to address issues and prevent similar incidents in
the future," Chevron ( CVX ) said in an emailed response to Reuters.
Of the money collected, $5.6 million will go towards ongoing
work to plug old, orphaned wells and $7.5 million will go
towards environmental enhancement projects, oil wildlife
response preparedness and future spill response funding, the
report added.
CDFW documented over 70 oil spills between 2018 and 2023 in
Kern County attributable to Chevron ( CVX ), which accounted for more
than 446,600 gallons (10,633 barrels) of oil spilled, according
to the report.
As the most populous U.S. state fights against climate
change, oil giants Exxon and Chevron ( CVX ) have written down
$5 billion to impair existing assets in California. Official
remarks from both companies show their discontent with the
state's regulatory policies.
The state of California has seen multiple oil spills
starting from a devastating oil well blowout in Santa Barbara in
1969 to Amplify Energy's offshore spill in 2021 that required it
to pay $50 million in settlements.
Last year, the state
sued major oil companies
accusing them of playing down the risks posed by fossil
fuels, after
dozens of lawsuits
were filed in previous years against the industry across
the U.S.