The oil giant also will pay a 3.5 million dollar civil penalty and spend more than four million dollars on other environmental projects in communities around its refineries, the US Justice Department and Environmental Protection Agency said in a joint statement.

The settlement could reduce harmful air emissions by almost 10,000 tonnes per year from five petroleum refineries that represent about five percent of total US refining capacity, they added.

The states of Hawaii, Mississippi, and Utah and the Bay Area Air Quality Management District in California would share some of that money, the statement said.

The settlement, subject to a 30-day public comment period, would require Chevron to install controls to reduce emissions at the refineries, cutting annual emissions of nitrogen oxide by more than 3,300 tonnes and sulfur dioxide by nearly 6,300 tonnes, the agencies said.

The air pollutants have been tied to serious respiratory problems and can exacerbate childhood asthma.

The affected Chevron refineries are located in Richmond and El Segundo, California; Pascagoula Mississippi; Salt Lake City, Utah and Kapolei, Hawaii.

The company was unavailable for immediate comment Thursday.

TERRA.WIRE