New Mexico And Chevron Settle Over Cleanup Case

New Mexico officials say Chevron Corp. will pay $5.2 million to settle the state's claims that the energy company improperly applied for money from a state environmental cleanup fund.

The state says the company allegedly said it didn't have and didn't collect on insurance to pay for cleaning up petroleum contamination from Chevron's leaking underground storage tanks at gas stations around the state.

According to the state, those statements were untrue because the company got payments from insurers through secret settlements and didn't tell the state.

The state says it paid $4 million to Chevron.

The settlement was announced Wednesday by the offices of Gov. Susana Martinez and Attorney General Gary King and by the state Environment Department.

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