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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 116
ChevronTexaco Corporation
Chevron Corporation (known as ChevronTexaco from 2001 to 2005) is the parent company of Chevron, Texaco and Caltex. It engages in oil and gas exploration and production; refining, marketing and transportation of oil, lubricants and fuels; chemicals manufacturing and sales; and power generation. Chevron conducts business in approximately 180 countries with more than 62,000 employees.
Federal Contract $: $ 452.0m
Total Number of Instances: 37
Total Misconduct dollar amount: $ 537.0m
- Annual Report
- Ethics Page
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Contracting Information
- Website
Instances of Misconduct
1. Salt Lake City Pipeline Leak
The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed a $423,600 penalty Chevron Pipe Line Company after an investigation into a June 2010 pipeline failure near the University of Utah campus in Salt Lake City, Utah. The pipeline failure resulted in the release of 800 barrels (33,600 gallons) of crude oil into the ground and nearby Red Butte Creek. PHMSA concluded that Chevron may have failed to institute and follow required procedures to patrol its pipeline rights-of-way, control corrosion on its system and protect its pipeline from stray electrical currents and did not have an adequate means to detect leaks along its pipeline system.... more»
2. Environment Texas v. Chevron Phillips Chemical Company (Baytown Pollution)
Chevron Phillips Chemical Company settled a Clean Air Act lawsuit filed by Sierra Club and Environment Texas alleging the company’s Cedar Bayou Chemical Plant in Baytown, Texas, was responsible for hundreds of Clean Air Act violations dating back to 2003 that resulted in the release of more than a million pounds of air pollutants. Chevron agreed to pay a $2 million penalty.... more»
3. Underpayment of Oil Royalties
Chevron USA Inc. paid the federal government $95 million to settle a False Claims Act case regarding the amount of royalties it owed on federal and Indian oil leases. The government alleged that Chevron and several affiliated companies systematically underreported the value of oil they pumped from the leased properties from 1988 through 1998.Chevron did not acknowledge any wrongdoing or liability.... more»
4. Arthur Kill, NJ Oil Spill
In a settlement with the New Jersey Attorney General’s Office, Chevron agreed to pay $1 million for spilling more than 10,000 gallons of crude oil into the Arthur Kill in February 2006. The spill occurred when a barge was offloading crude oil at the Chevron Perth Amboy facility. Chevron also paid the New Jersey Department of Environmental Protection $45,000 in a settlement related to the spill.... more»
5. U.S. ex rel. Wright v. Chevron (Underpayment of Natural Gas Royalties)
Chevron Corporation, Texaco, Unocal Incorporated and their affiliates agreed to pay the United States $45.6 million to resolve claims that they violated the False Claims Act by knowingly underpaying royalties owed on natural gas produced from federal and Indian leases from March 1988 to November 2008. The government alleged that Chevron, Texaco and Unocal improperly deducted from royalty values the cost of boosting gas up to pipeline pressures, used affiliate transactions to falsely reduce the reported value of gas taken from federal and Indian leases, and improperly reported processed gas as unprocessed gas to reduce royalty payments. See related Exxon Mobil instance, ("U.S. ex rel. Wright v. Chevron (Underpayment of Natural Gas Royalties)").... more»
6. Inoperable Firewater System
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring between July 10 and September 28, 2000. According to MMS: “The firewater system was inoperable for 81 days.”... more»
7. Failure to Replace Compromised Piping in a Timely Manner
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring between July 21 and August 3, 1999. According to MMS, the violation involved: “Failure to replace compromised piping in a timely manner or remove it from service resulted in pipng [sic] failure and release of 32,000 cf gas with 18,000 ppm H2S, causing damage to facility and placing platform and lives of all personnel on platform in substantial danger.”... more»
8. Bypassed Well Surface Safety Valve
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring in June 2001. According to MMS: “The surface safety value (SSV) for Well C-7 was bypassed.”... more»
9. Wet Oil Tank Violation
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring on May 25, 2001. According to MMS: “Pollution occurred when both the wet oil tank and sump tank carried over. The level safety high (LSH) on the wet oil tank did not shut-in the platform as indicated on SAFE chart.”... more»
10. Low Pressure Separator Explosion and Fire
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring in June 2002. According to MMS: “While cleaning a low pressure separator, the Confined Space Entry policy was not completely followed which resulted in an explosion and flash fire that injured four employees.”... more»
11. Gas Pipeline Violation
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring on November 13, 2001. According to MMS: “The gas sales pipeline (KAH 827) did not have secondary over-pressure protection.”... more»
12. Inoperable Automatic Backup Accumulator Charging System
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring in April 2002. According to MMS: “The automatic backup accumulator charging system was rendered inoperable by closed air supply valves.”... more»
13. Bypassed Pipeline Pressure Safety Lows
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring in May 2002. According to MMS: “The pressure safety lows on the two oil charge pumps and the pressure safety highs/lows on the on the two pipeline pumps were bypassed for 7 days.”... more»
14. Bypassed Gas Detector
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc. for a violation occurring in March 2003. According to MMS: “Gas detector protecting the generator building was found in the bypass position.”... more»
15. Inadequate Maintenance of Platform Emergency Equipment
The Minerals Management Service (MMS) of the Department of Interior fined Chevron U.S.A. Inc for a violation occurring in August 2004. According to MMS: “Platform's emergency equipment had not been adequately maintained. The winch and lower flange kit on the south capsule was severely corroded and unsafe for use.”... more»
16. Employee Compensation Antitrust Litigation
Non-union managerial, professional and technical (MPT) employees of the major oil companies filed lawsuits under the Sherman Act (15 U.S.C. § 1–7) alleging that the companies, including Exxon, Royal Dutch Shell, BP and Chevron, illegally colluded to set the wages of MPT employees at artificially low levels by sharing salary, bonus and compensation data. Lawsuits filed by Former Exxon employee Roberta Todd and several other plaintiffs were reportedly settled in 2009 for an undisclosed sum with the defendants not admitting any liability or wrongdoing.... more»
17. Leaded Gasoline Exposure
A Mississippi state court jury awarded $19 million to five women who claimed Texaco (now a unit of Chevron Corp.) was responsible for their children being born with disabilities and illnesses. The five women were pregnant while working between 11 and 20 years earlier at a Jefferson County office building that used to be a Texaco gas station. They alleged they were exposed to leaded gasoline fumes contained in fuel tanks that were left in the ground after the gas station was renovated.... more»
18. Aguinda v. ChevronTexaco (Amazon Rainforest Pollution)
A class-action lawsuit filed in Ecuador alleges Chevron subsidiary Texaco dumped billions of gallons of toxic wastewater into the Amazon rainforest from 1964 to 1992 while operating oil wells in the area. What has become known as the "Rainforest Chernobyl" is considered one of the world's worst ecological disasters. The suit, filed on behalf of approximately 30,000 rainforest dwellers, alleges the highly carcinogenic toxic waste has caused numerous deaths from cancer, spontaneous miscarriages and genetic malformations, and demands that Chevron pay for the cleanup, estimated to cost at least $6 billion. In February 2011, a judge of the provincial court of justice of Sucumbíos in Lago Agrio found Chevron liable and ordered the company to pay $8.65 billion for remediation and an equal amount in punitive damages. The judge also ordered Chevron to pay $860 million to the Amazon Defense Coalition, the group formed to represent the plaintiffs. The judgment is currently on appeal in U.S. court. See related ChevronTexaco pending instance, "Amazon Rainforest Pollution – Criminal Indictment."... more»
19. Illegal Discharge of Polluted Wastewater (Wilmington, CA)
Texaco Refining and Marketing, Inc., a subsidiary of Texaco Inc., pleaded guilty to two felony counts of violating the federal Clean Water Act and was fined $4 million for discharging millions of gallons of polluted wastewater into the Dominguez Channel and into a creek in San Luis Obispo. Approximately $3 million of the fine will be designated to support environmental projects in the Central District of California. A four year investigation revealed that the company discharged oil and grease wastewater containing 940 parts of pollutants per million, over 60 times the allowed limit. The company was also placed on one year’s probation.... more»
20. New Hampshire MTBE Pollution Lawsuit
The state of New Hampshire filed a lawsuit in state court against 22 oil companies, including ChevronTexaco, for using the chemical methyl tertiary butyl ether (MTBE), a gasoline additive the state alleges has caused widespread contamination of the state’s waters and has adverse health effects. The state claims that the companies produced a defective product, created a public nuisance and violated state environmental and consumer protection laws. In July 2011, Chevron settled the lawsuit for $625,000.... more»
21. Illegally Bypassing Wastewater Treatments (Richmond, CA)
Chevron's Richmond, California oil refinery agreed to install additional water pollution controls and pay $540,000 to settle allegations that the facility violated the Clean Water Act when it intermittently bypassed a wastewater treatment system between 1991 and 1995 and failed to properly notify the public about toxic releases to the environment, in violation of the Emergency Planning and Community Right-To-Know Act (EPCRA) and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). The released substances included hydrogen sulfide, hydrogen flouride, sulphur dioxide, and sulfuric acid. Chevron's Richmond facility is one of Northern California's largest oil refineries.... more»
22. MTBE Cleanup Costs (Santa Monica, CA)
“Under the terms of a settlement filed…in federal court, several oil companies [including Chevron, Shell and Exxon] will pay $1.5 million to the Environmental Protection Agency for costs it incurred while directing the investigation and cleanup of methyl tertiary butyl ether (MTBE), a gasoline additive, from a groundwater basin formerly used for drinking water by the City of Santa Monica, California... The agreement between the EPA and the oil companies follows eight years of investigation and cleanup under the Federal Resource Conservation and Recovery Act and California’s Porter Cologne Act. The MTBE contamination in the vicinity of Santa Monica’s drinking water wells came from at least 25 possible sources, most of which were gas stations in the Charnock Sub-Basin.” Including past costs, the oil companies are expected to spend more than $200 million to address the cleanup.... more»
23. Air Pollution Violations at Kern County, CA Oil Fields
Texaco reached a settlement with the U.S. Justice Department and the Environmental Protection Agency by agreeing to outfit two of its oil fields in western Kern County, California with new air pollution control devices and pay $568,000 in penalties for violating the Clean Air Act. The government alleged that Texaco drilled and operated 720 crude oil production wells without getting proper permits and removed vapor recovery equipment from 5,030 crude oil wells without applying for a permit until after completing the work. Two years earlier, Texaco settled cases involving the same violations with the San Joaquin Valley Unified Air Pollution Control District for $556,000.... more»
24. Air Pollution National Settlement (CA, HI, MS and UT)
Chevron U.S.A., Inc. agreed to pay over $281 million in penalties, pollution control equipment upgrades and supplemental environmental projects to settle alleged violations of the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), the Emergency Planning and Community Right-To-Know Act, and the Clean Air Act at its petroleum refineries in California, Hawaii, Mississippi and Utah. Among Chevron’s alleged violations were failure to report releases of hazardous substances, including diethanalomine, nitric oxide and sulfuric oxide, and failure to properly implement a risk management program.... more»
25. Clean Air Act Violations (El Segundo, CA)
Chevron U.S.A., Inc. agreed to pay a $6 million penalty and $1 million for environmental improvement projects to settle claims of Clean Air Act violations at its offshore loading terminal near El Segundo, California. The government alleged that vapors known as volatile organic compounds (VOCs) leaked into the atmosphere, and contributed to the area's smog problem, as petroleum products were transferred to marine vessels at the terminal. Chevron’s records showed that from 1995 to 1998, the facility did not use pollution control technology required by the federal Clean Air Act and California environmental regulations.... more»
26. Failing to Repair Leaking Pipe Connectors (Richmond, CA)
The Bay Area Air Quality Management District fined Chevron $242,500 for failing to repair leaking petrochemical pipe connectors in a timely manner at its Richmond, California refinery. According to BAAQMD inspectors, the Chevron plant had 241 leaking connectors (out of 800,000 in total) during a three month period in 1998. Emissions from leaking connectors contribute to ground-level ozone formation, which can cause or exacerbate respiratory diseases.... more»
27. Air Quality Violations (Richmond, CA)
Chevron agreed to pay the Bay Area Air Quality Management District $300,000 in fines for failing to meet air quality standards at its Richmond, California refinery. The refinery accumulated 52 violations from 1998 until May 2001, some of which contributed to a fiery explosion that sent hundreds of people to the hospital complaining of breathing difficulty and eye irritation. Chevron received violation notices for organic emission leaks from refinery valves, excess emissions from waste water separators, and excessive smoke.... more»
28. MTBE Products Liability
Thirty-one oil and petroleum refiners and distributors were sued in California state court over the contamination of water wells near Lake Tahoe by the gas additive methyl tertiary butyl ether (MTBE). Twenty-five defendants settled with the South Lake Tahoe Public Utility District before trial began in September 2001 for a total of $31 million in cleanup costs, of which Chevron reportedly paid $10 million. In the ensuing trial, the jury found the remaining companies – Shell Oil Co., Shell Products Co., Equilon Enterprises LLC, Texaco Inc. and Tosco Corp. – liable for selling a defective product, namely gasoline containing MTBE. Those companies eventually settled for over $28 million.... more»
29. Puerto Rico RCRA Violations
A settlement between the U.S. Environmental Protection Agency (EPA) and Chevron Puerto Rico, LLC resolved Resource Conservation Recovery Act (RCRA) violations at approximately 100 of Chevron’s underground storage tank facilities in Puerto Rico. Under the terms of the settlement, Chevron agreed to spend approximately $5.2 million to improve its leak detection methods and operations at its service stations and pay a $600,000 civil penalty. Among Chevron’s alleged violations were failure to: provide release detection for tanks and piping, provide adequate overfill protection equipment, perform annual tests of automatic line leak detector systems, and maintain adequate records of release detection for tanks and piping.... more»
30. Improper Deductions on Gulf of Mexico Leases
The U.S. Department of the Interior’s Office of Natural Resources Revenue (ONRR) collected a $1.1 million civil penalty from Chevron U.S.A. for improperly claiming transportation deductions on certain leases it holds in the Gulf of Mexico. ONRR cited Chevron for claiming transportation deductions for certain “Section 6” leases which specifically bar deductions for oil transportation. In April 2010, ONRR denied the transportation deductions claimed by Chevron. Chevron did not dispute the order and corrected and repaid the improper transportation deductions. However, Chevron again claimed such transportation deductions in later months, which prompted ONRR to issue the penalty.... more»
31. Brazil Oil Spill
Brazil’s environmental agency fined Chevron 50 million reals (approx. US$28 million) for an oil spill off the Rio de Janeiro coast in November 2011. Chevron took full responsibility for the leak of about 2,400 barrels at the at Frade field, which resulted from a rupture in the well's structure in November 2011.... more»
32. Angola Pollution Fine
Angola’s Ministry of Fisheries and the Environment fined ChevronTexaco $2 million for oil spills from an offshore platform that polluted beaches and damaged the local fishing industry. A government investigation found that leaks from poorly maintained pipes used to transport crude oil from platform were the cause of the spills. Chevron, which pumps almost three-quarters of Angola's oil, reportedly promised to invest $108 million to replace the pipes.... more»
33. Environmental Violations in Kazakhstan
According to media accounts, Kazakhstan’s ecological ministry fined Tengizchevroil, a Chevron-led consortium developing the country’s Tengiz oil field, $609 million (later reduced to $309 million on appeal) for environmental violations relating to the stockpiling of sulfur between 2003 and 2006. The fine was imposed in July 2007, although it wasn’t announced until October. Chevron has a 50 percent stake in the consortium. Other members of the consortium include ExxonMobil, which has a 25 percent share, and Lukarco, a joint venture between Lukoil and BP, which has a 5 percent share. Tengizchevroil reportedly paid the fine, plus $10 million in legal fees, in November 2007.... more»
34. Oil For Food Program Kickbacks
Chevron agreed to pay $30 million to settle charges that it paid kickbacks to Iraq in connection with crude oil purchased in 2001 and 2002 under the United Nation’s Oil-For-Food program. According to the Securities and Exchange Commission, intermediaries under contract with Chevron made approximately $20 million in illegal payments that bypassed the Oil-For-Food escrow account and were paid directly to Iraqi-controlled bank accounts in Jordan and Lebanon, in violation of the Foreign Corrupt Practices Act. Under the agreement, Chevron, which did not admit or deny the SEC’s allegations, will remit $25 million in profits, pay a $3 million civil penalty, and pay $2 million to the Department of Treasury’s Office of Foreign Asset Controls. (Chevron satisfied its disgorgement obligation by forfeiting $25 million pursuant to a non-prosecution agreement with the U.S. Attorney's Office for the Southern District of New York.) The Oil-For-Food program, which ran from 1996 to 2003, was established to help Iraqis cope with sanctions the U.N. imposed after Saddam Hussein invaded Kuwait in 1990. Under the program, money from Iraqi oil sales was to have been used by the government to purchase humanitarian goods such as food and medicine. However, there were accusations of widespread corruption and abuse, with hundreds of foreign companies accused of colluding with Hussein’s regime to bilk the program of billions of dollars.... more»
35. Violations of the Outer Continental Shelf Lands Act
The Minerals Management Service of the Department of Interior fined Chevron U.S.A. Inc. for violations of the Outer Continental Shelf Lands Act. According to a notice published in the Federal Register: “The LSH on Run Tank, MAJ 1027, was bypassed while changing a leaking site glass. There was no way to monitor the level inside the vessel which was a contributing factor to the 2 bbl oil spill on August 1, 2006.”... more»
36. Nationwide MTBE Groundwater Contamination Litigation
A dozen oil companies, including BP America Inc., Chevron Corp., Shell Oil Co. and Valero Energy Corp., agreed to pay over $423 million to settle litigation with public water providers in 17 states over groundwater contamination from the gasoline additive methyl tertiary butyl ether (MTBE). The companies also agreed to pay cleanup costs that arise in the next 30 years. Defendant ExxonMobil refused to settle and faces numerous MTBE trials, scheduled to begin in September 2008.... more»
37. Molycorp Facility Cleanup Employee Termination
The Nuclear Regulatory Commission reached a settlement with Chevron Environmental Management Company (CEMC) over the termination of a contract radiation safety employee who raised safety concerns during the decommissioning of the former Molycorp Inc. facility in Washington, Pennsylvania. The Molycorp facility operated from 1964 to 1970, producing an iron alloy from ore that contained natural thorium and uranium. CEMC, the successor organization to Molycorp, is cleaning up the site. The NRC’s Office of Investigations determined that the individual was fired after raising safety concerns about transporting potentially contaminated soil samples over public roads and about the presence of potentially radioactive airborne dust at the site. CEMC agreed to implement a number of actions at the site regarding employees’ rights to speak out about safety concerns, and the NRC agreed not to pursue further enforcement action on the issue.... more»
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