Chevron Corporation (NYSE:CVX) an American Multinational energy corporation situated in California, United States paid $1.8 million to Utah against the money which the company has used from the fund which was meant for the companies without insurance. In 1989 the government has setup a fund called Utah Petroleum storage tank fund for those upcoming small gas stations for receiving assistance when they suffer from leaking storage tanks. Companies can use the fund only when they send some amount to the fund and can use the money in case cleaning the leaky gas tanks. But here Chevron Corporation (NYSE:CVX) who is already covered under insurance has used the fund.
Hence As the company already applied for the reimbursement though it was covered under insurance, it is now responsible for the repayment of the total amount applied along with the certain required penalties.
Brent Tippen who is the spokesperson said that as no one will be benefited with the lawsuit hence it should be mutually settled instead of denying of the allegations after hiding the fact of covered under the insurance.
Why the spokes person is asking to settle the matter mutually, as the state has already charged ConocoPhillips (NYSE:COP) and BP Amoco when they denied for the settlement. For example, $25 million was received from ConocoPhillips (NYSE:COP) against the false claims made up to 14 years.
The main motive behind all this lawsuits and settlements is that the fund is and should be only for those who are eligible for that money and who contribute for using the fund. Hence in conclusion if the money has been withdrawn illegally or without complete understanding then it should be sent back to the same account.
Shares of Chevron Corporation (NYSE:CVX) were down by 0.08% to close at $107.82, shares of ConocoPhillips (NYSE:COP) were down by 0.33% to close at $57.69.