Aug 15 (Reuters) - Chevron Corp (CVX.N) , opens new tab is to pay Richmond City Council $550 million over 10 years, the city said in a statement, in a settlement that saw it drop a proposed ballot on a new tax on the oil major's Richmond refinery.

Richmond planned to seek voters' approval for a tax on the refinery, which processes about 250,000 barrels of crude oil per day, saying Chevron should pay its fair share to the community it has been in for over a century.

As a result of the settlement the council approved on Wednesday, the city agreed to withdraw the measure, it said in the statement posted on its website.

The company will pay the money in annual installments starting from July 1, 2025 to June 30, 2035, it said.

"Chevron Richmond and the City of Richmond have reached an agreement that settles litigation and removes the Refining Business License Tax measure from the ballot," the company said in an emailed response to Reuters.

"This agreement ensures Chevron Richmond can continue to provide Northern California with the affordable, reliable and ever-cleaner energy the region’s economy needs."

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https://www.reuters.com/business/energy/chevron-pay-550-million-settlement-richmond-california-2024-08-15/