Chevron and El Segundo agree on $425 million community benefit deal
The city of El Segundo and Chevron's El Segundo refinery have reached a tentative 15‑year Community Benefit Agreement worth $425 million. The pact provides an immediate $5 million donation and annual payments that start at $23 million, rise to $28 million in year six and $33 million in year eleven. Including existing taxes, the city expects to collect about $557 million over the term. Final approval must be obtained from the El Segundo City Council before the end of the year.
Why it matters
The agreement would give El Segundo a predictable cash flow to address near‑term budget deficits and fund capital projects, improving the city’s fiscal stability. The deal also more than doubles Chevron’s contributions compared with the prior agreement, which may affect the company’s community‑relations profile.
Key facts
- 1Chevron and El Segundo reached a tentative $425 million Community Benefit Agreement for 15 years. mynewsla.com
- 2The agreement includes a one‑time $5 million donation at signing. mynewsla.com
- 3Annual payments start at $23 million per year for the first five years, rise to $28 million in year six, and $33 million in year eleven. mynewsla.com
- 4Including Chevron’s existing taxes, the city would receive about $557 million over the 15‑year term. mynewsla.com
- 5The current El Segundo‑Chevron agreement expires on September 30, 2027. mynewsla.com
- 6Final approval by the El Segundo City Council is required before year‑end. hoodline.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.