WASHINGTON (Reuters) - Chevron Corp will spend about $163 million to settle claims by the U.S. government and the state of Mississippi that it violated provisions of the Clean Air Act when its refineries accidentally released hazardous chemicals, the U.S. Justice Department said on Wednesday.
Chevron will spend about $150 million to replace vulnerable pipes, improve inspections and training, and make other safety improvements at all its domestic refineries, the department said in a statement.
Chevron also will pay a $2.95 million civil penalty and will spend at least $10 million on environmental projects in the communities near its refineries in California, Mississippi, Utah and Hawaii, the statement said.
“Chevron U.S.A. Inc. cooperated fully with regulators in reaching this settlement,” the company said in a statement.
“As part of this settlement, Chevron U.S.A. Inc. has agreed to significant investments at its refineries to enhance the safety and reliability of operations,” it said.
The settlement with the Justice Department, the U.S. Environmental Protection Agency and the Mississippi Department of Environmental Quality is subject to final court approval.
It was filed on Wednesday in U.S. District Court for the Northern District of California and is subject to a 30-day public comment period.
Reporting by Eric Beech; Editing by Chris Reese