The New Jersey Attorney General's Office has reached a $39 million consent agreement with Phillips 66 Co. over claims that it produced gasoline that contaminated the state's waterways with the additive MTBE.

The settlement ends a decade of litigation by the state over liability for gasoline containing MTBE—methyl tertiary butyl ether—that was supplied to the New Jersey market by the Bayway Refinery in Linden.

The suit was part of multidistrict litigation over MTBE contamination that was before U.S. District Judge Vernon Broderick in the Southern District of New York. The New Jersey Department of Environmental Protection filed suit in state court in 2007 against Conoco Phillips Co., which was then the owner of the Bayway Refinery, and nearly 50 other companies, under state environmental laws. The case was later consolidated by the Judicial Panel on Multidistrict Litigation in the Southern District, where a related case against Chevron was dismissed in 2014. The Phillips 66 settlement brings the total amount recovered by the state in MTBE litigation to nearly $157 million, according to the Attorney General's Office.