Chevron to begin compensating Salt Lake City for oil spill cleanup costs

SALT LAKE CITY — The price tag for cleaning up after last weekend's Chevron pipeline breach that released 33,000 gallons of crude oil into Red Butte Creek is still unknown, but company officials said Thursday they're ready to start compensating Salt Lake City for its costs related to the mess.

Chevron spokesman Dan Johnson told the Deseret News that work is in progress to reach a formalized agreement in the coming days.

"We are now talking about the way the city is going to get their expenses reimbursed," Johnson said. "We recognize the city's position and the responsibilities we have taken on. We know the taxpayer should not have to pay the burden associated with this spill."

Salt Lake City Mayor Ralph Becker said he continues to be satisfied with Chevron's efforts but is simultaneously constructing an apparatus to ensure the best interests of the city, its residents and damaged ecosystems are being met.

Embracing an adage made famous by former President Ronald Reagan, Salt Lake City will "trust but verify" the Chevron company's ongoing oil spill cleanup efforts with an expert, independent adviser.

Becker's office announced late Wednesday that the city had hired Seattle-based environmental consultants Dalton, Olmsted & Fluglevand to oversee mitigation efforts under way following the Chevron accident. Principal engineer Paul Fluglevand is in charge of advising the city and reviewing cleanup work, as well as evaluating immediate and long-term impacts.

Fluglevand has extensive experience in the areas of environmental cleanup and habitat restoration and has performed work on large-scale remediation projects in Washington and around the country.

While Chevron and city officials work out money issues, residents who own property damaged by the spilled crude are also lining up for compensation. Becker's office said about 38 claims have been filed with Chevron so far, and there are likely many more to follow.

In an effort to streamline claims processing, Chevron is building a website, expected to be operational in the next few days. An estimated 300-400 parcels were directly or indirectly impacted by oil released in the accident.

Karen Hale, the mayor's communication director, said the city is processing about 30 calls a day from residents proximate to Red Butte Creek on the east side of the city, and "a handful" from west-side residents.