A Texas based oil company and two of its subsidiaries have agreed to pay nearly $13 million in fines related to an October 2021 oil spill. The spill released 25,000 gallons of oil into the San Pedro Bay.
Amplify Energy Corp. and its subsidiaries, Beta Operating Co. and San Pedro Bay Pipeline Co. were indicted on charges of violating the Clean Water Act in December. The companies accepted a plea deal that has them paying $7.1 million in fines. They will pay an additional $5.8 million to compensate federal programs. The total amount will be paid over three years.
The companies will also be on probation for four years while mandatory changes are made. Some of the changes include training employees and management on how to respond to potential leaks, installing a new leak-detection system, and conducting semiannual visual underwater inspections of the pipeline.
US Attorney Stephanie S. Christensen released a statement on behalf of DOJ saying “The substantial financial penalties and compliance measures required by the plea agreements demonstrate the federal government’s resolve to punish any entity that causes environmental damage. As a result of the defendants’ conduct, approximately 588 barrels of crude oil were discharged from a point approximately 4.7 miles west of Huntington Beach from a crack in the pipeline. This oil spill affected numerous people, businesses and organizations who use the Southern California coastal waters. The companies involved are now accepting their responsibility for criminal conduct and are required to make significant improvements that will help prevent future oil spills. Additionally, the defendants previously paid the vast majority of expenses related to the clean-up of the spill.”
O.C. oil spill: Companies to plead guilty, pay about $13M in fines, costs
