Chevron to pay $550 million settlement to Richmond, California

[August 15, 2024]  (Reuters) - Chevron Corp is to pay Richmond City Council $550 million over 10 years, the city said in a statement, in a settlement that saw it drop a proposed ballot on a new tax on the oil major's Richmond refinery.  

A Chevron gas station is shown after Chevron Corp said it would buy Hess Corp in a $53 billion all-stock deal, in Encinitas, California, U.S., October 23, 2023. REUTERS/Mike Blake/ File Photo

Chevron did not immediately respond to a Reuters' request for comment.

Richmond planned to seek voters' approval for a tax on the refinery, which processes about 250,000 barrels of crude oil per day, saying Chevron should pay its fair share to the community it has been in for over a century.

As a result of the settlement the council approved on Wednesday, the city agreed to withdraw the measure, it said in the statement posted on its website.

The company will pay the money in annual installments starting from July 1, 2025 to June 30, 2035, it said.

(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Emelia Sithole-Matarise)

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