Chevron agrees to $13.1 million settlement for Kern County oil spills

Chevron oil spills settlement: Chevron has agreed to pay a substantial settlement amounting to $13.1 million to resolve past oil spill incidents in Kern County, Bakersfield, announced the California natural resources agency on Wednesday.

The settlement, reached with two California state agencies, marks a significant step in addressing environmental concerns stemming from the oil spills. Chevron, having previously covered the cleanup costs for the spills that occurred in 2019, will now allocate $5.6 million to the California Department of Conservation and $7.5 million to the California Department of Fish and Wildlife (CDFW), as outlined in the agreement.

The spills, which occurred in Kern County, involved a minimum of 800,000 gallons of oil and water, as reported by local media outlets. This settlement represents the largest fine historically imposed by both departments.

In response to inquiries, Chevron emphasised its ongoing commitment to addressing environmental issues and preventing similar incidents in the future. The company underscored the significance of these settlements as a demonstration of proactive measures toward environmental stewardship.

A significant portion of the settlement funds, $5.6 million, will be directed towards ongoing efforts to address old and orphaned wells. Additionally, $7.5 million will be allocated to various environmental enhancement projects, including oil wildlife response preparedness and future spill response funding.

According to records from CDFW, Chevron was linked to over 70 oil spills between 2018 and 2023 in Kern County alone, resulting in the release of more than 446,600 gallons (equivalent to 10,633 barrels) of oil. These spills had adverse effects, leading to the death or injury of at least 63 animals and impacting approximately six acres of salt brush and grassland habitat.

(With Reuters inputs.)