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    Shell Settles with Texas Environmental Groups

    Oil company agrees to pay $5.8 million penalty and cut greenhouse gas emissions.

    NEW YORK -- Shell Oil Co. agreed to pay a $5.8 million penalty and cut greenhouse gas emissions at a Gulf Coast refinery as part of a settlement with Texas environmental groups who filed suit against it early last year, The Associated Press reported.

    The agreement, which must still be approved by a federal judge, would cut greenhouse gas emissions at Shell’s Deer Park, Texas, refinery and chemical plant by 750,000 pounds a year for the next three years. In addition, monitoring of air quality would be improved, according to the Sierra Club and Environment Texas groups.

    Shell said the settlement was consistent with plans to cut emissions at the Deer Park site.

    "We strive to operate in compliance with all permits and regulations," Shell said in a statement. "We are pleased that we have reached an agreement with the citizen groups to resolve the matter, avoid continued litigation and provide benefits in the public interest."

    The Sierra Club and Environment Texas filed suit against Shell early last year.

    "This settlement agreement represents a major victory in the fight for clean air on Texas's Gulf Coast," said Sierra Club's Neil Carman. "We urge other oil and chemical companies in the region to take note of Shell's willingness to work constructively with us."

    The monetary penalty would be used to fund health projects in Texas, the AP reported.

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