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Committee forwards tolling agreement extension with Chevron to full Board as committee report
Summary
The committee voted 3-0 to forward a resolution retroactively approving a tolling agreement that extends the statute of limitations through May 31, 2024 between the City and Chevron USA entities over responsibility for plugging and abandoning oil wells and remediating potential contamination on city-owned property in Kern County.
The Government Audit and Oversight Committee on March 7, 2024 voted unanimously to forward to the full Board a resolution approving a tolling agreement between the city and Chevron USA Holdings Inc. / Chevron USA Inc. The agreement would extend the statute of limitations through May 31, 2024 to allow possible resolution of disputes over which party is responsible for plugging and abandoning oil wells and remediating potential contamination on city property in Kern County that had previously been leased by Chevron.
The clerk read the item, and the Chair said he did not see reason to convene in closed session. "It is my intention unless colleagues want to convene in closed session to act on this, without convening in closed session," Chair Dean Preston said. The clerk reported there was no public comment on the item.
The resolution also authorizes the City Attorney to enter into extensions or modifications to the tolling agreement that do not materially increase obligations or liabilities to the city and that are necessary to effectuate the purposes of the agreement or the resolution. Committee members did not request closed-session deliberations on settlement strategy and moved to forward the item as a committee report.
The motion to forward passed on a recorded 3-0 vote. The item will appear on the full Board agenda for further consideration.
