CBE and Chevron have reached a settlement regarding the Chevron modernization project approved by the City in July 2014.  This settlement is another step towards resolving outstanding issues relating to the modernization project.  In the settlement agreement, CBE has agreed:  to refrain from comment on the Air District’s pending ‘authority to construct’ permit proceedings; and to agree or stipulate to ‘discharge the writ and lift the stay’ in the pending superior court litigation involving the City, Chevron, and CBE, and to waive, or give up, all cost claims against Chevron and the City in those proceedings. 

Under this agreement, Chevron and CBE have agreed to file an agreement or stipulation ‘discharging the writ’ with the superior court (ending all litigation involving the current and earlier EIRs). If this is joined by the City and approved by the Court, it will allow Chevron to proceed with its project, but only after all Air District permits and necessary ministerial City permits have been obtained.  However, the parties to the settlement agreement have agreed that this stipulation can be withheld if any person or organization appeals the Air District authority to construct permits.  While CBE has not submitted comments in those Air District proceedings, other third-parties, such as the Sierra Club and APEN, have submitted comments, so an appeal could be filed by one or more of those parties.If an appeal is filed by any such third-party, the settlement agreement could be undone. 

In short, the litigation involving the City, Chevron, and CBE may be headed toward conclusion.   However, the parties must wait at least a few more months until the Air District authority to construct permit proceedings conclude before wrapping up the litigation (and before triggering Chevron’s full obligations under the Environmental and Community Investment Agreement), assuming the Air District permits arenot appealed.