The Attorney General's Office for the state of Utah announced this week that Chevron (NYSE:CVX) has paid $1.8 million to settle allegations that the oil company unlawfully received a number of payments from the state's Petroleum Storage Tank Fund (PST).
The AG's Office said the PST made payments to Chevron to cover the costs of cleaning up spills from underground fuel storage tanks, despite the fact that Chevron had insurance that might have covered such costs. The AG's Office said it is satisfied with how the issue has been addressed and said that Chevron has "demonstrated a desire to be a responsible corporate citizen" over the years.
The AG's Office further noted that it has filed complaints in court against other oil companies, including ConocoPhillips (NYSE:COP), BP (NYSE:BP), and Amoco, making similar allegations. "Utah is among several states seeking to recoup the state PST Fund monies paid for cleanups to oil companies who failed to disclose the existence of insurance," said Paul McConkie, assistant attorney general, in the state's news release.
Fool contributor Rich Smith has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Chevron. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.