Chevron North America Exploration and Production Company Case Settles for $328,500.00

This page last reviewed January 29th, 2014.

Chevron is obligated to report natural gas supplied to California each year, but did so late for the year 2011, in violation of the Regulation for the Mandatory Reporting of Greenhouse Gas Emissions, California Code of Regulations, title 17, section 95100 et seq. Such reports allow emissions from that fuel to be fully accounted for in ARB’s emissions inventory and under the Cap-and-Trade Regulation. The natural gas in question was associated gas from oil fields in the San Joaquin Valley. Chevron did report combustion emissions from those oil fields, but in 2011, the first year for which natural gas suppliers were required to report, Chevron overlooked the obligation to report transfers of natural gas. 

In light of the important role reporting plays under the overall efforts to reduce greenhouse gas emissions, the Air Resources Board is vigorously enforcing reporting regulations. Because Chevron self-disclosed and promptly corrected its omission and fully cooperated with ARB’s investigation, the parties compromised for a penalty of $328,500 based on $1500 per day, below the possible maximum of $10,000 per day.