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Environmental Expenditures
Using definitions and guidelines established by the American Petroleum Institute, ChevronTexaco estimates its worldwide environmental spending in 2002 at US$1.3 billion for its consolidated companies. Included in these expenditures are $399 million of environmental capital expenditures and $925 million of costs associated with the control and abatement of hazardous substances and pollutants from our ongoing operations. This spending represents approximately 4.3 percent of capital and exploratory expenditures and 11.8 percent of operating expenses in 2002.
Environmental Fines
At times, ChevronTexaco facilities have not met all governmental environmental requirements, resulting in fines and penalties by various agencies in addition to ongoing environmental expenditures. We regret these lapses and are committed to learning from them to continually improve our compliance with all applicable requirements. In 2002, ChevronTexaco paid 82 environmental fines or settlements for a total of US$4.3 million.
Although the number of individual fines and settlements decreased from 2001, the total dollar amount paid out increased significantly. This is attributable primarily to settlements in the United States. Significant fines and settlements in 2002 included: US$1.55 million for groundwater contamination near the El Segundo Refinery in California; US$750,000 for environmental violations at upstream operations in Rangely, Colorado; US$869,992 for environmental violations in Aneth, Utah, upstream operations; and US$250,000 in penalties associated with a fire at the Aneth gas plant.
In 2002, we also paid 196 fines or settlements for noncompliance with health and safety regulations at our facilities. The total dollar amount associated with these fines or settlements was relatively small.
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