$3.4M Proposed To 2021 SoCal Pipeline Leak
After a 2021 oil pipeline leak damaged SoCal beaches, a federal agency finally proposes fine amount to energy company.
That energy company is Amplify Energy Corp., an independent oil and natural gas company focused in many areas across the country. In 2021, Amplify Energy Corp. ignored 83 alarms indicating the offshore pipeline had spilled. In addition, they failed to notify federal authorities or shut down the pipeline to San Pedro Bay. Maybe 17 hours later to be exact,
Pipeline Leak
What came out of the spill was 25,000 gallons (94,600 liters) of crude oil. Consequently, this created a miles-wide sheen in the ocean and sent blobs of crude oil ashore. Beaches that were primarily affected included the cities of Huntington Beach and Newport Beach. This further shuttered beaches for a week and fisheries for more than a month, oiled birds and threatened area wetlands.
Southern California fishermen, tourism companies and property owners sued Amplify and the shipping vessels seeking compensation for their losses. Amplify Energy related the spill damage from two ships it accused of dragging anchors and striking the pipeline during a January 2021 storm. The companies of the two ships were M/V Danit and M/V Beijing. Eventually, the companies altogether reached an $85 million settlement. Also, Amplify reached a plea deal with federal authorities for negligently discharging crude.
Resolution
“The resolution of Amplify’s claims against the vessels and their affiliated entities concludes our involvement in the litigation related to the 2021 pipeline incident,” Martyn Willsher, Amplify’s president and chief executive, said in statement.
The Pipeline and Hazardous Materials Safety Administration proposed the fine in a letter April 6 this year to the company’s president. The pipeline carries oil to shore from platforms in San Pedro Bay, near the Los Angeles and Long Beach harbors. The company hopes to receive approval from federal regulatory agencies to restart the pipeline very soon.
Featured Image by Ringo H.W. Chui/AP