press release

Chevron Press Release - Chevron, U.S. Government Partially Resolve litigation Over Offshore Moratoria

HOUSTON, July 31, 1995 -- Chevron U.S.A. Production Company announced it has reached an agreement with the U.S. Federal Government to resolve Chevron's claims over a number of offshore oil and gas leases where it was not allowed to explore. As a result of the settlement, Chevron will receive approximately $65 million from the U.S. government and will relinquish its interests in certain leases offshore Southwest Florida and Bristol Bay, Alaska.

The lawsuit was filed in 1992, after Chevron was prohibited for many years by federal moratoria from exploring and developing millions of dollars' worth of leases purchased from the government in the 1980s. A Chevron claim over leases off the coast of North Carolina has yet to be resolved.

"Although we agreed to resolve a portion of our claim, ultimately we remain disappointed over the government's policy toward exploration of important U.S. oil and gas prospects," said Ray Galvin, president of Chevron U.S.A. Production. "For us, the settlement only represents partial compensation for our investment in the leases. We would much prefer the right to explore and develop U.S. energy sources."

Updated: July 1995