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Article

20 Mar 2020

Author:
AP News

USA: Plains All American Pipeline to settle for $60 million in case brought by Environmental Protection Agency for oil spill

"Pipeline owner to pay $60 million over 2015 California spill" 14 March 2020

The owner of an oil pipeline that spewed thousands of barrels of crude oil onto Southern California beaches in 2015 will pay $60 million to to settle allegations that it violated safety laws, the U.S. Environmental Protection Agency announced Friday.

Texas-based Plains All American Pipeline didn’t admit any wrongdoing or liability in the consent decree that will end a lawsuit filed on behalf of federal and state agencies. But it agreed to operational changes and to five years of federal and state scrutiny to ensure it is obeying the pollution and safety rules.

The agreement still must undergo a public comment period and needs federal court approval...

Federal inspectors found that Plains had made several preventable errors, failed to quickly detect the pipeline rupture and responded too slowly as oil flowed toward the ocean.

Plains operators working from a Texas control room more than 1,000 miles away had turned off an alarm that would have signaled a leak and, unaware a spill had occurred, restarted the hemorrhaging line after it had shut down, which only made matters worse, inspectors found.

Plains apologized for the spill and paid for the cleanup. The company’s 2017 annual report estimated costs from the spill at $335 million, not including lost revenues. The company also revised its plans for dealing with onshore pipeline spills.