San Ramon, California based,
) has agreed to pay $2 million as fine and compensation for the
Aug 2012 fire in its refinery at the San Francisco Bay Area in
Richmond. Of the total, $1.28 million will be paid as fine and
$575,000 as reimbursements to the different state organizations
involved in the case.
The company also plans to develop its air monitoring system
and spend additional $145,000 towards training activities in the
field of renewable energy and construction.
CHEVRON CORP (CVX): Free Stock Analysis
FERRELLGAS -LP (FGP): Free Stock Analysis
NISKA GAS STRG (NKA): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
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On Aug 6, 2012, a fire in the oil giant's refinery in Richmond
caused inconvenience to its employees as well as the locals. The
explosion was tracked down to a gas leak in the pipeline due to
corrosion. Chevron was found guilty of not replacing the almost
40-year old pipeline and turning a deaf ear to warnings even from
its own inspectors.
While the employees suffered only minor injuries, the resultant
black smoke cover caused respiratory troubles for the locals. The
245,000 barrel per day (bpd) refinery was then shutdown for nine
months for repair work, hindering the company's gasoline
Early this year, Chevron reported that it had already paid almost
$10 million as compensation, most of which went to hospitals for
the treatment of those affected by the incident.
Pleading no-contest to the charges, Chevron - which is slated to
spend three and a half years on probation - stated that it would
look into safety enhancement on hopes that such an accident will
not happen again. True to its words, Chevron is continuing with
the inspection of 16,000 individual piping components.
Chevron Corp. - a leading international publicly traded oil and
gas company - currently retains a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can consider
Pioneer Southwest Energy Partners L.P.
Niska Gas Storage Partners LLC
Ferrellgas Partners L.P.
) as good buying options. These stocks are expected to perform
well in the short run and currently sport a Zacks Rank #1 (Strong