George S. May Business Blog

Shell settles environmental case for $19.5 million

In a settlement filed in the Alameda County Superior Court of California, Shell Oil Co. has agreed to pay out $19.5 million to settle claims that the company violated state environmental laws. Shell is also required to improve its storage and monitoring of possible fuel leaks.

Attorney General Jerry Brown: “Shell Oil Company disregarded the state’s underground fuel storage and hazardous waste laws, committing hundreds of environmental violations at its gasoline stations across California”.

The investigation, which began back in 2006, has said to have uncovered hundreds of violations by the company.

For instance, authorities found the company’s gasoline stations had failed to properly maintain the required leak detection monitoring system for its gasoline tanks, failed to properly maintain spill alarms for its gasoline tanks, failed to properly conduct and maintain secondary containment testing and monitoring for its gasoline tanks.

The settlement requires the company and its subsidiaries, corporate parents and affiliates to comply with state law and take immediate steps to correct violations.

The judgment includes $7.8 million in civil and administrative penalties, $5 million to the Attorney General’s Office, $5 million to the California State Water Resources Control Board, $700,000 to fund the Sacramento County Abandoned Well Restoration Project, $500,000 to California Climate Action Registry, $400,000 in investigative costs and attorneys’ fees to the Attorney General’s Office and $100,000 in investigative costs to the California State Water Resources Control Board.

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