excerpt
from August 12, 2002 ACWA News
South
Tahoe Windfall Brings
MTBE Case to a Close
by ACWA Regulatory Specialist Krista
Clark
A California Superior
Court judge approved a final settlement agreement August 5 in which
Shell Oil Co. has agreed to pay the South Tahoe Public Utility District
(STPUD) $28 million to compensate for the MTBE contamination of several
drinking water wells.
This agreement marks the close of the District's original lawsuit
against eight major oil companies and MTBE manufacturers. Five of
those companies settled out of court, but three others, Shell Oil
Co., Tosco (now owned by Phillips Petroleum), and Lyondell Chemical
(which now owns Chevron Products company), chose to challenge the
lawsuit in court.
Last month, the Superior Court jury found the three remaining companies
liable for the MTBE contamination of South Tahoe's groundwater supplies
and deemed the companies guilty of selling a defective product.
Lyondell and Tosco reached settlement agreements first. The Shell
Oil settlement marks the end of this multi-year legal battle. The
District announced that the total settlement amount with all eight
companies has reached $69 million.
The settlement money will offset costs expended by the District and
pay for ongoing remediation of the MTBE contamination that forced
the closure of 12 drinking water wells.
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