Chevron Agrees to Pay California City $550 Million to Avoid Getting Hit With New Tax

Chevron has agreed to pay the city of Richmond, California, $550 million over 10 years in a settlement under which the city will drop a November ballot measure that would have imposed a new tax on the company’s Richmond refinery. The Richmond City Council voted 7–0 on Aug. 14 to approve the settlement agreement, under which Chevron will pay the city $50 million annually for five years starting in 2025, then $60 million a year until 2035. In exchange, the city has agreed to rescind a resolution that would have placed a proposed $1 per barrel tax on Chevron’s oil refinery in Richmond, while adopting a resolution approving the settlement. The city’s finance director estimated that the tax would have brought Richmond between $60 million and $90 million per year....