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California State Water Resources Control Board Royal Dutch Shell

False cleanup claim settlement

24 Sep, 2016

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.