* Report needs to show if heavier grades will be processed
* Must explain how co will cut greenhouse gas emissions
* Chevron says disappointed with ruling
(Adds response from Chevron in paragraphs 5-7)
NEW YORK, April 26 A California state appellate
court on Monday denied Chevron Corp's (CVX.N) efforts to
overturn a lower court ruling that blocked it from expanding
its Richmond oil refinery without first delivering a more
expansive environmental-impact review.
San Francisco's First District Court of Appeal said state
judge Barbara Zuniga properly interpreted California
regulations last summer when she ruled Chevron's review of the
potential health and safety effects of expanding the refinery
needed more work.
Among other things, the court wants Chevron to reveal if
the expanded facility, located near residential neighborhoods,
will process heavier grades of crude oil, which generate more
pollution than lighter grades.
The report must also explain how the second-largest U.S.
oil company plans to reduce greenhouse gas emissions.
Chevron spokesman Brent Tippen said the company was
disappointed with the ruling, and contends the expansion
project was properly analyzed and permitted.
"We feel both the evidence and the law amply supported the
adequacy of the (environmental report) prepared by the city of
Richmond" for the project, he said in an e-mailed statement.
"We are now reviewing the court's decision and will
determine what is next to be done."
(Reporting by Joseph A. Giannone in New York and Braden
Reddall in San Francisco; Editing by Himani Sarkar)