Chevron pays $550 million to Richmond, California

Chevron Corp will pay Richmond City Council $500 million over a period of 10 years. The city made the announcement in a press release, after it dropped a ballot proposal on a tax on Richmond's oil refinery.

Richmond was planning to ask voters for approval of a tax for the refinery that processes around 250,000 barrels per day. Richmond said Chevron must pay its fair share in the community, where it has operated for more than a century.

In a statement on its website, the city said that as a result the settlement approved by the council on Wednesday, it agreed to remove the measure.

It said that the company would pay in annual installments from July 1, 2020 to June 30, 2035.

Chevron Richmond, in an email response, said that the city of Richmond and Chevron Richmond had reached an agreement to settle litigation and remove the Refining Business License Tax from the ballot.

This agreement will ensure that Chevron Richmond continues to supply Northern California's economy with affordable, reliable, and cleaner energy.

(source: Reuters)