Chevron Welcomes Gorgon Environmental Appeal Decision

Chevron Corporation on Tuesday confirmed that Western Australia's environment minister has cleared the way for environmental approval to be granted to the Gorgon project subject to conditions.

The minister has upheld the Gorgon proponents' appeal of the Western Australia Environmental Protection Authority's June 2006 advisory bulletin that recommended against the Gorgon project's Environment Impact Statement and Environmental Review and Management Plan.

"Chevron welcomes today's announcement which reaffirms the Gorgon participants' belief that the project can proceed in an environmentally responsible way on Barrow Island," said Jay Johnson, managing director, Chevron Australia. "The venture participants remain committed to working with state and federal governments to ensure this nationally important project proceeds in an environmentally responsible way."

The Gorgon project proposal involves a two-train liquefied natural gas (LNG) plant and a domestic gas plant on Barrow Island, located off Australia's northwest coast, home to Australia's largest operating onshore oil field for more than 40 years.

Gorgon's environmental assessment was the result of more than three years' preparation and includes the research and contributions of more than 100 independent experts and extensive community consultation. Through this process, the project has refined a number of development designs, allowing equal or better environmental outcomes.

The Western Australia's minister for the environment has also provided a framework for environmental conditions. These conditions as well as environmental approval from the federal minister will need to be finalized before the project can proceed.

The Gorgon project is operated by the Australian subsidiary of Chevron in joint venture with Australian subsidiaries of ExxonMobil and Shell.

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