Chevron U.S.A. Inc. has agreed to pay a record $7 million to settle claims that it violated the Clean Air Act at its offshore loading terminal near El Segundo, California. The settlement includes a $6 million penalty, the highest ever paid under the Clean Air Act for a single facility, and environmental improvement projects valued at $1 million.
In 1997, the nonprofit Communities for a Better Environment filed a lawsuit against Chevron, alleging that vapors known as volatile organic compounds (VOCs) escaped into the atmosphere as petroleum products were transferred to marine vessels from underwater pipelines connected to the Chevron refinery. In November 1999, the United States also filed suit.
The settlement with the United States prohibits Chevron from using its marine terminal until the EPA and Chevron agree on a plan to adequately lower air emissions. Until then, the company will conduct its petroleum-loading operations at a third party’s marine terminals equipped with the appropriate emissions-control equipment.
