Rocky Mountain Power announced Friday that it had settled a lawsuit with oil giant Chevron related to two spills that poured tens of thousands of gallons of crude into Red Butte Creek.
Chevron Pipe Line Co. had sued the Utah-based power company for $30 million after an electrical surge apparently damaged an oil pipeline, causing two spills, according to court filings.
The first spill, in June 2010, unleashed 33,600 gallons of crude as it leaked overnight, scarring Red Butte Creek, property in surrounding neighborhoods, the Liberty Park pond and parts of the Jordan River.
Crews from Chevron repaired the pipeline, under the direction of state and federal agencies, court documents say. The pipeline reopened just over a week later, but it broke again in December 2010, spewing another 21,000 gallons near Red Butte Garden’s amphitheater. The pipeline reopened Feb. 1, 2011, with safety upgrades.
Property owners alleged in a 2012 federal lawsuit that despite Chevron’s cleanup, remnants of oil lingered, causing health problems and a drop in property values. Chevron settled the lawsuit in 2015 with a resolution that made property owners “happy,” according to the owners’ attorney Paul Durham.
Chevron filed its counterclaim against Rocky Mountain Power in 2013 to recover some costs. At the time of the filing, Chevron said it had spent at least $35 million for cleanup and other costs related to the oil spills.
The specifics of Friday’s “settlement is confidential but on terms agreeable to both parties,” a news release from Rocky Mountain Power said.
