Third Fine Levied Against Chevron Following Brazil Oil Leak

Chevron officials say new allegations levied against the U.S. oil company by Brazil's oil regulator ANP will be examined, following ANP's Dec. 29 imposition of a third fine following a November oil leak.

The still-unspecified fine is for Chevron's failing to conserve the oil reservoirs in its appraisal well development plan, allowing oil to ooze from the sea floor, according to ANP's website.

The new fine, according to Brazil's oil regulators, is the third imposed on the San Ramon, Calif.-based company. The first was for Chevron's not having enough equipment on hand to contain the leak. A second fine was for failing to deliver images of the leak to ANP.

Chevron was fined $28 million for the spill, plus an additional $5.4 million imposed late last month. The company is also facing an $11 billion law suit seeking environmental reparations following the leak.

We will review the allegations cited in the ANP's notification and will respond within the allotted time, said Chevron spokesperson Scott Walker. We are confident that we have at all times acted diligently and appropriately, and in accordance with the best practices in the oil industry as well as within the Plan of Development approved by ANP.

A Chevron appraisal well, earlier in November, suffered a spike in pressure as the company drilled into the ocean floor. The spike cracked the ocean floor and 2,400 barrels of oil seeped from the fault.

The company has since closed the well and officials say oil stopped seeping from the fissures four days after the leak was identified.

Chevon shares were at $110.55, up almost 4 percent, in late Tuesday trading.