(The following press release from the Massachusetts Attorney General's
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FOR IMMEDIATE RELEASE December 26, 2012
CHEVRON TO PAY $1.7 MILLION TO RESOLVE ALLEGATIONS OVER REIMBURSEMENT CLAIMS
FOR GAS STATION CLEANUP
Violations of False Claims Act Allegedly Occurred Across the Commonwealth
BOSTON - Chevron USA, Inc. and Texaco Downstream Properties, Inc. will pay $1.7
million to resolve allegations they received reimbursement payments from a
state fund for gas station cleanup projects even though Chevron and Texaco
sought and received payments from their insurers, Attorney General Martha
Coakley announced today. These false claims allegedly involved service stations
across the Commonwealth.
The Massachusetts Underground Storage Tank Petroleum Product Cleanup Fund
program (UST Fund) was established to expedite the cleanup of environmentally
dangerous leaks from underground storage tanks, such as those commonly found at
gasoline stations, by reimbursing owners and operators for eligible expenses
incurred in their response. To fund the program, the Commonwealth charges tank
registration and delivery fees.
According to the UST Fund's regulations, claimants must disclose if they sought
reimbursement from another source including insurance for expenses they submit
to the UST Fund. If claimants do recover money from both insurance and the fund
for the same expenses, they must pay back the UST Fund.
"While the UST Fund program continues to be a great resource for our
environment, it requires honesty from its participants in order to be effective
and efficient," AG Coakley said. "We will continue our efforts to determine
whether some oil companies may have sought or recovered money from their
insurers without proper disclosure or reimbursement."
In 2001, Chevron and Texaco merged to create ChevronTexaco (now Chevron
Corporation). This settlement resolves the alleged failure of each company
before the merger - and Chevron after the merger - to disclose to the UST Fund
that they had certain insurance policies and that Chevron and Texaco each
received payments from their respective insurers through policy buy-backs
and/or settlements of their claims.
The settlement with the Attorney General's Office requires payment of $825,000
to the Commonwealth's UST Program Expendable Trust and $875,000 to the
Commonwealth's General Fund. Chevron cooperated fully with the Attorney
The AG's Office will continue its ongoing investigation into whether certain
other oil companies submit false statements to the UST Fund or obtain
reimbursements for which they did not qualify. On April 9, 2012, AG Coakley
announced a $2.2 million settlement with
unoco-reimbursement.html> involving the company's claims to the UST Fund. On
April 13, 2012, AG Coakley sued Hess
-18-hess-complaint.html> alleging falsely claimed reimbursements from the UST
This case was handled by Assistant Attorneys General Alex Klibaner and Matthew
Gendron, with assistance from Deputy Division Chief Monica Brookman, all from
AG Coakley's Insurance and Financial Services Division.
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