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Mass. settles with Chevron for $1.7M

BOSTON (AP) -- Chevron Corp. has agreed to pay Massachusetts $1.7 million to settle allegations that it received payment from the state for hazardous waste cleanup at gas stations at the same time it was getting reimbursed by its insurers.

The attorney general's office says Chevron USA, Inc. and Texaco Downstream Properties Inc., which merged in 2001, will pay $825,000 to the cleanup fund and $875,000 to the state's general fund.

The companies cooperated with the state investigation, although Chevron denied any wrongdoing.

The state alleged that Chevron and Texaco, before and after the merger, made improper claims for cleanup money for gas stations across the state.

The state won a $2.2 million settlement from Sunoco for similar allegations. The state has also sued Hess Corp. for alleged false claims involving cleanup.