The resolution approves a settlement between San Francisco and Chevron regarding claims about property conditions in Kern County, California, which includes transferring ownership of that property. It also confirms that the settlement aligns with environmental regulations and city planning policies, allowing the Director of Property to make necessary adjustments to the agreement.
Resolution approving the settlement of the unlitigated claims between the City and County of San Francisco, and Chevron U.S.A. Holdings Inc. and Chevron U.S.A. Inc., including the conveyance of real property owned by the City in Kern County, California; the claims involve the condition of and liability for the property; affirming the Planning Departmentβs determination under the California Environmental Quality Act; finding that the disposition of property is consistent with the General Plan, and the eight priority policies of Planning Code, Section 101.1; and authorizing the Director of Property or their designee to make certain modifications to the settlement and conveyance documents, and take certain actions in furtherance of this Resolution.
How it got here
This legislation originated from a settlement agreement between the City and Chevron regarding the transfer of City-owned property in Kern County, California, following the expiration of an oil lease and subsequent disputes over environmental liabilities.
Alfred Furhman bequeathed approximately 800 acres of real property in Kern County to the City, which was subsequently leased for oil extraction.
The Board adopted Administrative Code, Section 23.42, prohibiting the City from entering into or extending leases for fossil fuel extraction on City-owned land.
The oil lease between Chevron and the City expired, leading to disputes over responsibilities for well closure and contamination.
The City and Chevron entered into a settlement agreement to resolve disputes regarding the property, with Chevron agreeing to take responsibility for environmental liabilities.
The Planning Department determined that the proposed settlement is not defined as a project under CEQA and is consistent with the General Plan.
The Board adopted the resolution approving the settlement agreement, allowing the transfer of property to Chevron.
Reconstructed from attached documents & the official record