Several companies disposed of industrial waste while operating the site, located south of Albuquerque, N.M., contaminating area groundwater. The state will dismiss its case against Chevron under the settlement.

The state will continue its case against the two major defendants, General Electric Co. and American Car Foundry, which also had operations at the site.

"The proceeds from this settlement will provide means to redress the harm that industrial contamination has cause the South Valley, but this is only a beginning," Madrid said. "I am still pressing forward against General Electric, who I believe has been the worst corporate actor in its operations in the South Valley."