Chevron Press Release - Chevron Sets Record Straight On Elk Hills
WASHINGTON, D.C., Sept. 8, 1995 -- In testimony today before a congressional subcommittee, a Chevron official clarified the company's position on the Elk Hills Naval Petroleum Reserve. "Chevron's sole objective is to maximize the financial return of its 22 percent stake in Elk Hills," Elk Hills Program Director Mike Stay told the House panel today.
The Energy and Power Subcommittee of the House Commerce Committee held a hearing on the proposed sale of the Elk Hills Naval Petroleum Reserve, which is held and operated jointly by the U.S. Government and Chevron U.S.A.
"Privatizing the Elk Hills Naval Petroleum Reserve will result in meaningful deficit reduction for taxpayers -- and it will give Chevron an efficient commercial business partner," said Stay.
House and Senate committees approved provisions to sell the government's interest in Elk Hills. The language is included in the Defense Authorization bill currently under consideration by a joint House-Senate conference committee. The proposed legislation also lays out a time line and guidelines for valuation of the field and the bidding process.
Stay underscored that the legislation establishes strict guidelines for the bidding process that prevent any one company from gaining an unfair advantage. "Chevron would have no head-start, no inside track, and no special advantage," he said.
Under the proposed legislation, the field will be valued by independent experts who understand the petroleum industry and Elk Hills' revenue potential. The Department of Energy and the Office of Management and Budget will set a minimum bid price based on the valuation. The bidding will be open to all companies, the bids will be sealed and all the government's 75 years of data on the field will be shared with all bidders.
Click here to see Chevron's full Congressional testimony
Updated: September 1995