Texas Says Chevron Royalty Settlement Near

Chevron Corp. is prepared to pay more than $17.5 million to settle its portion of a 1995 lawsuit over oil and natural gas royalties in Texas, state lawyers said. The suit, brought by the Texas General Land Office, accused eight major oil companies of underpaying hundreds of millions of dollars in royalties to a fund that helps finance public education in Texas. It also alleges the companies underpaid taxes on natural gas and oil produced in Texas. The suit means San Francisco-based Chevron will pay more in royalties for oil and natural gas that it produces in Texas. Chevron is the first of the eight companies named in the suit to agree to settle. Chevron, while acknowledging a settlement is near, won’t “concede it has underpaid royalties and taxes,” Chevron spokeswoman Alison Jones said. Chevron shares fell 37.5 cents to close at $70.50 on the New York Stock Exchange.