UPDATE 1-Judge tells Chevron to stop Calif. refinery work

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By Erwin Seba

HOUSTON, July 2 (Reuters) - A California state judge ordered Chevron Corp (CVX.N: Quote, Profile, Research) to halt a $1 billion project aimed at expanding the types of crude oils its San Francisco Bay-area refinery in Richmond, California, can process, according to court documents released on Thursday.

Contra Costa County Superior Court Judge Barbara Zuniga sided with California environmental activists that the environmental impact report filed to obtain construction permits for a new hydrogen plant failed to depict how pollution from the refinery would be changed by the project and provide a greenhouse gas mitigation plan as required by California law.

"It's a complete victory," said Will Rostov, attorney for Earthjustice, which represented California community groups opposing the project.

A Chevron representative was not immediately available to discuss Zuniga's order, which was released Thursday.

Chevron Chief Executive Dave O'Reilly suggested in June the project may be shut down.

"We haven't reached a final decision yet, but this is what I think is wrong with California, where people are ... worried about the gasoline price yet can't allow a project to be built after four years of hearings and permits," O'Reilly said.

Zuniga's order provides a 60-day period for Chevron to demobilize the project, but that work cannot include any new construction, according to the order.