The sentence was handed down Friday by a jury in Pointe a la Hache in Plaquemines Parish, Louisiana, a marshy area southeast of New Orleans.
Plaquemines authorities sued Chevron following its takeover of another oil behemoth, Texaco, in 2001. They accused Texaco of violating an environmental protection law adopted in 1978 in Louisiana.
But the lawsuit alleged Chevron and Texaco did not fulfill their obligations.
The jury awarded Plaquemines $575 million for the loss of part of its land, now permanently under water, $161 million for pollution, and $9 million over the abandonment of equipment.
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