Unocal says expected costs for Avila Beach remediation project adequately reserved
El Segundo, Calif., June 18, 1998 - Unocal Corporation said today that the expected costs of its Avila Beach excavation and remediation project are adequately provided for in the company's reserve for environmental remediation obligations.
The company announced on Tuesday an $18 million settlement agreement for the Avila Beach clean-up project (see news release). The agreement settles claims brought by the State of California, the County of San Luis Obispo and environmental groups, and incorporates performance parameters for the clean-up project.
The $18 million does not include the expected or possible additional excavation or remediation costs, which have been included in total company wide cost estimates published in its annual report and in periodic reports filed with the Securities and Exchange Commission. Individual private property and business-related claims are not included in the $18 million settlement.
Unocal is one of the world's largest independent oil and gas exploration and production companies, with major resource development, power plant and pipeline projects in Central and Southeast Asia, Latin America and the U.S. Gulf of Mexico region.
Information about the Avila Beach clean-up project is available at www.projectavila.com.
Updated: June 1998