Chevron settlement: Richmond to get $5 million in 2012 refinery fire lawsuit
Chevron will pay Richmond $5 million to settle a lawsuit stemming from the 2012 refinery fire that hospitalized thousands of Bay Area residents and prompted new state workplace safety laws.
Lawyers for the multinational energy corporation based in San Ramon already have signed the agreement, and the payment is expected to be made later this month, according to City Attorney Bruce Goodmiller. He said the settlement does not include an admission of fault by Chevron.
The Aug. 6, 2012, fire sparked when a leaky, corroded pipe ruptured in one of the refinery’s crude oil units, where petroleum is heated above 700 degrees Fahrenheit. More than 20 workers fled for their lives minutes before a vapor cloud over the site caught fire, according to the thenchairman of the U.S. Chemical Safety Board.
The resulting blaze sent a black plume of smoke over the region, and some 15,000 people sought treatment in hospitals for respiratory problems. While no one was seriously injured, those closest to the refinery reported nausea, wooziness and difficulty breathing.
A federal investigation found that Chevron had a flawed response to the fire and a lax attitude toward safety. Last year, the company settled with the state Division of Occupational Safety and Health, promising to replace its pipes with ones that have a higher resistance to corrosion and to implement better procedures for monitoring equipment. The steps were expected to cost $20 million.
State lawmakers last year passed a set of refinery safety laws that require, among other rules, managers to pick the most effective safety measure when fixing a hazard, even if it is more costly.
Richmond’s lawsuit, filed in 2013, alleged that Chevron ignored public safety, negligently released toxins and hydrocarbons into the air and harmed the local economy.
The City Council voted 5-0 Tuesday to approve the $5 million settlement. Councilwoman Jovanka Beckles abstained and Councilman Jael Myrick was absent.
Chevron spokeswoman Patty Canessa said the company believes the settlement is a fair resolution and has made progress in addressing the problems identified by federal and state regulators. She said the agreement specifies that the money will go toward areas such as public safety, education and parks.