MASSACHUSETTS AG: CHEVRON TO PAY $1.7M TO RESOLVE ALLEGATIONS

     (The following press release from the Massachusetts Attorney General's 
Office was received by e-mail and was reformatted. The sender verified the 
statement.) 
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 
General's investigation. 
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 
Sunoco<http://www.mass.gov/ago/news-and-updates/press-releases/2012/2012-04-09-s
unoco-reimbursement.html> involving the company's claims to the UST Fund. On 
April 13, 2012, AG Coakley sued Hess 
Corporation<http://www.mass.gov/ago/news-and-updates/press-releases/2012/2012-04
-18-hess-complaint.html> alleging falsely claimed reimbursements from the UST 
Fund. 
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. 
MEDIA CONTACT:
Jillian Fennimore
(617) 727-2543 
(kgt)NY