False cleanup claim settlement
Shell will forfeit a chance to collect up to $150 million from a state-run fund that reimburses oil companies for cleaning up leaking underground storage tanks. The company also will pay $20 million in penalties under a settlement, by California officials, bringing the total cost to as much as $170 million. The whistleblower, who informed the Water Board that Shell was collecting insurance proceeds while also submitting claims to a cleanup fund for underground tanks, will collect $3.4 million of the $20 million. California Water Board:
They were getting reimbursement for cleanup costs from an insurer.
Shell denies wrongdoing:
We feel this settlement is an amicable resolution to this issue.
The company is still obligated to clean up the leaks even though the reimbursement claims have been denied. Shell still has about 900 claims pending with the state cleanup fund.
Facing debt challenge
Due to the downturn in oil prices the Company is reportedly having issues paying down its debt. Without loan guarantees from the tribal council, NNOGC has been left to try to refinance existing loans, consider selling some the company’s assets or explore filing Chapter 11 bankruptcy protection. Spokesperson:
We are considering all avenues to pay down our bank debt while maintaining the company’s assets. NNOGC remains the Navajo Nation’s most valuable asset and also a very important strategic asset. The valuation of oil and gas properties and pipelines goes up and down with oil prices. We estimate our assets to be worth $100 million to $200 million in the current market and for those values to again rise as oil prices increase…We have plans to drill in the near future but remain focused on repaying outstanding debt at the moment.
Moves out of downtown Houston
Shell largely abandons its iconic tower in downtown Houston and consolidates workers on the west side of town in its Woodcreek complex in the Energy Corridor and the Shell Technology Center a few miles south of Woodcreek. Only Shell’s energy trading team will remain downtown. The move – largely to cut costs in the ongoing oil bust – continues the exodus of Big Oil from downtown Houston. Exxon Mobil moved out when it built its massive new campus by Spring. Of Houston’s Ten largest energy employers, just Chevron and CenterPoint Energy remain downtown.