Breitling Oil and Gas California Morning Podcast #31

Chevron is entitled to unspecified damages against the federal government in a contract dispute over oil deposits in California worth $37 billion, the U.S. Court of Claims ruled.

The Department of Energy “repeatedly and materially violated” two agreements governing determination of equity interests in oil and gas deposits located in the Elk Hills Reserve of California, Judge Susan Braden in Washington wrote in a 90-page ruling.

Chevron “is entitled to be compensated for damages, in an amount to be determined, including sanctions for DOE and the government’s ‘bad faith’ conduct and abusive discovery tactics,” the ruling stated

Chevron filed the suit in 2004 after failing to agree on the exact split of its joint holdings in the Elk Hills facility with the Energy Department. The company and the government operated the field together for more than 50 years,

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