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Shell settles Californian environmental contamination lawsuit for $91 million

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Shell’s settlement with 1,491 residents will be a total of $90 million

From The Daily Breeze

City officials have announced final settlement agreements involving Shell Oil Co., the city, and hundreds of current and former residents of the Carousel neighborhood in the city’s southern end over a contamination lawsuit stemming from a former oil tank farm at the site.

The details of the two separate settlements between Shell and the city, and Shell and residents, weren’t disclosed during Tuesday night’s City Council meeting. But Shell’s settlement with 1,491 residents will be a total of $90 million divided with attorneys and disbursed by a mediator based on health and property damage claims, according to documents obtained by the Daily Breeze.

The neighborhood was developed from a tank farm into a residential community in the 1960s. Widespread petroleum contamination was found beneath hundreds of the homes in 2008 and an environmental investigation began. Shell is now finalizing a plan to remove the contaminated soil.

— Sandy Mazza


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