AT&T; Settles State Suit Over Chemical Storage

AT&T; Inc. agreed to pay $25 million to settle a lawsuit brought by California that accused the company of failing to test and repair underground storage tanks that contained hazardous chemicals.

AT&T; risked spills of methyl tertiary-butyl ether, a gasoline additive, and other toxic chemicals into the environment and surrounding communities, state Atty. Gen. Bill Lockyer said.

The suit alleges violations at AT&T;’s 531 underground facilities in California.

“This case was settled in order to avoid the cost of litigation and to maintain our good working relationship with local regulatory agencies,” AT&T; spokesman John Britton said.