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State officials have approved a $5.35 million settlement agreement with Chevron Pipe Line Company that stems from a 27,500-gallon diesel fuel spill at Willard Bay State Park in March.

The agreement between the Division of Water Quality (DWQ), Division of Parks and Recreation and Chevron is divided into three parts.

The largest total, $4.45 million, will be used for mitigation projects and includes a $719,000 credit Chevron was given for projects already completed.

Future projects at Willard Bay will be funded with $600,000 from the $4.45 million.

Walt Baker, director of the Utah Division of Water Quality, told the Tribune in December that the remaining money will be used for mitigation projects selected by his agency and could include areas not directly impacted by the spill.

Chevron will pay a civil penalty of $350,000 to DWQ, and $550,000 will go to the Department of Natural Resources and Utah State Parks for the lost use of the marina and campgrounds during the spill and the cleanup.

"We appreciate the work done by DWQ and Chevron in negotiating the settlement," Fred Hayes, director of Utah State Parks, said in prepared release. "We feel the settlement adequately addresses the problems caused by the spill."

Chevron no longer owns the pipeline that runs from Salt Lake City to Spokane, Wash.

The line running through Willard Bay State Park, and not far from Interstate 15, is now owned by Tesoro Corporation.

Chevron had previously been fined $426,600 for spills equaling 54,600 gallons on Red Butte Creek in Salt Lake City.

The company also spent about $43 million in cleanup and mitigation in neighborhoods and at Liberty Park.

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The Utah Division of Water Quality will consider mitigation projects "that will enhance the natural environment and benefit Utah citizens" through May 5.

A two-phase process will be used to evaluate proposals and select projects for funding. Proposals must meet specified criteria and be submitted in the appropriate format. Requirements for proposals and application forms are available on DWQ's website at

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