Credit: Eric Risberg/AP
RICHMOND, CALIFORNIA — In mid-August, this Northern California city extracted a half-billion dollar payout from Chevron, one of the most powerful companies in the world. It didn’t require a lawsuit, or a refinery disaster, or years of negotiations.
Instead, Chevron caved in the face of a local initiative that would have taxed every barrel it produced within Richmond’s city limits at its century-old, 3,000-acre plant just north of San Francisco. Within weeks of the tax being placed on the ballot, the oil and gas giant offered an unprecedented $550 million settlement to make it go away.
The local activists and city council who initiated the process had not set out to win a compromise, but they have revealed a new source of leverage that can be used to win concessions from large corporations with little political bloodshed. In […]
It will be interesting to see how long localities will be permitted to get away with this. I suspect that the Oligarchs will open the check books and magically legislation will be generated on the State level to pre-empt this. You may be able to get away with this in California but State officials are too greedy to allow this to spread.