State of California v. Atlantic Richfield Co.
Published: Aug. 27, 2002 | Result Date: Jun. 19, 2002 | Filing Date: Jan. 1, 1900 |Case number: CGC0240937 Verdict – $45,800,000
Court
San Francisco Superior
Attorneys
Plaintiff
Louise H. Renne
(Renne Public Law Group)
Dennis J. Herrera
(San Francisco Public Utilities Commission)
Defendant
Facts
In 1988, the state of California notified all gas stations undertaking business in California to upgrade their
underground storage tanks by Dec. 22, 1998 in order to meet standards for corrosion protection, leak detection,
spill prevention and other environmental protection measures.
As of Jan. 1, 1999, the state prohibited fuel delivery to any gas station that did not display a government-issued
certificate indicating that all relevant state requirements had been met.
The plaintiff gave notice to Atlantic Richfield Co., the defendant, in April 2000 that it
believed Arco's gas stations were not in compliance, based on reports from the San Francisco
Dept. of Health, the California Environmental Protection Act and the State Water Resources
Control Board (SWRCB).
Settlement Discussions
The parties agreed to settle the claim without litigation. The complaint and landmark settlement of $45,800,000 were filed on the same day. The defendant paid $21,140,000 in civil penalties, $860,000 in costs and enforcement fees, $3,000,000 in Special Funding Projects and received a credit of $20,800,000 for money already spent on upgrades completed beyond the degree required by law.
Damages
The State of California sought compliance with its environmental laws relating to storage tanks, costs of enforcement and penalties.
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