Oil companies agree to settle MTBE contamination lawsuits

“We've worked hard to reach a responsible resolution to the cases being settled and are pleased to be moving forward”

At least two major oil companies said late Wednesday they have agreed to settle lawsuits over the use of the gasoline additive MTBE, a potential carcinogen that has been found in drinking water.

Representatives of Valero Energy Corp. and Chevron Corp. said they had joined the settlement, although a number of other oil companies are also named in a memo supporting the deal that was obtained by The Associated Press.

The companies confirmed their involvement after The Wall Street Journal reported on its Web site that several oil companies agreed to pay $423 million plus cleanup costs to settle groundwater contamination litigation involving 153 public water providers in 17 states. That would make it the largest settlement to date involving the additive. Read more