A Texaco Inc. subsidiary has agreed to pay $8.95 million to settle a state complaint that it improperly stored hazardous wastes at its Bakersfield plant, officials said.

Attorney General John Van de Kamp and state Health Director Kenneth Kizer called the settlement the largest ever reached under California's hazardous waste law.He said state investigators found about 5,000 steel drums containing hazardous waste at the Texaco Refining and Marketing Inc. plant in Bakersfield. About 2,000 drums were leaking, corroded or open and more than 3,000 were not labeled.