Chapman University, Arco settle suit accusing oil company of selling polluted property

MarketsAssociated Press

Chapman University and Arco say they have reached an out-of-court settlement resolving a lawsuit accusing the oil company of selling property in Orange, California, that was contaminated with toxic chemicals.

The Orange County Register (http://bit.ly/1VD2Gzt ) reported Friday that Chapman purchased the property in 1998. It was once the site of the city of Orange's largest industrial plant.

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University officials say they discovered the contamination in 2011 when they pursued plans to put a residence hall there. The lawsuit estimated cleanup costs would exceed $5 million.

Terms of the settlement were not disclosed, but officials say the university will pay only a small part of the costs.

Chapman now plans to put a recreational area on the site. The residence hall will go across the street.

Arco is owned by Texas-based Tesoro Corp.

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Information from: The Orange County Register, http://www.ocregister.com