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New Mexico, Chevron settle case over cleanup costs


September 11. 2013 4:41PM
Associated Press

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(AP) New Mexico officials say Chevron Corp. will pay $5.2 million to settle the state's claims that the energy company improperly applied for money from an environmental cleanup fund.


The state alleges Chevron falsely claimed it didn't have and didn't collect on insurance to pay for cleaning up petroleum contamination from the company's leaking underground storage tanks at gas stations around the state. The state says the company did get payments from insurers through secret settlements.


The state says it paid $4 million to Chevron after the company filed dozens of claims to tap into the cleanup fund. Some of the claims date back to the early 1990s.


The settlement was announced Wednesday by Attorney General Gary King and the state Environment Department.


A message seeking comment with Chevron officials wasn't immediately returned.


Associated Press


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