By Maria Armental
ConocoPhillips (COP) and Phillips 66 (PSX) agreed to pay $11.5
million to settle accusations in California they failed to maintain
properly underground gasoline-storage tanks, putting at risk nearby
water supplies, the state attorney general said Thursday.
Under the terms of the settlement, the Houston companies, which
didn't admit fault or guilt, agreed to pay a $9 million civil
penalty, $1 million toward environmental projects in that state,
and about $1.5 million in legal costs.
The final judgement was filed Wednesday in Alameda County
Superior Court.
According to regulatory filings, Phillips 66, ConocoPhillips's
former refining and marketing arm that was spun off in 2012, will
recognize the settlement expenses.
The companies have since sold most of its interests in the
underground storage-tank sites, according to the court
documents.
In a complaint filed in 2013, the California authorities accused
ConocoPhillips and Phillips 66 of violating antipollution state
laws by, among other things, failing to properly maintain equipment
to detect leaks and a working alarm system, inspect the tanks
monthly and test secondary systems to contain potential leaks as
well as failing to train employees appropriately.
The authorities found violations dating to 2006 in more than 560
gas stations in that state.
Write to Maria Armental at maria.armental@wsj.com
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