Advisen FPN

Advisen Front Page News - Thursday, July 23, 2020

   
$1.6 million settlement reached in 2016 oil spill
$1.6 million settlement reached in 2016 oil spill
Publication Date 07/22/2020
Source: Ventura County Star (CA)

An oil pipeline company and associated contractor will pay a $1.6 million settlement regarding a 2016 crude oil spill in Ventura, the Ventura County District Attorney's Office said Tuesday.

The owner of the pipeline, Crimson Pipeline L.P., agreed to pay $1.3 million in civil penalties, costs and natural resources damages as part of the settlement. The contractor working on the pipeline, identified as CD Lyon Construction Inc., has agreed to pay $300,000 in civil penalties and outstanding costs.

The spill was reported on June 23, 2016, in the Hall Canyon area of Ventura. It was caused by a pipeline owned by Crimson after a faulty valve-replacement operation. When the pipeline began to operate after the replacement, it began to leak because new valve flanges had not been properly tightened by CD Lyon workers.

In total, more than 44,000 gallons of crude oil were released into the Hall Canyon area, officials said. The spill was stopped by first responders and pipeline personnel before reaching the Pacific Ocean, but the spill area required months of cleanup. Some nearby residents left their homes because of the overwhelming odor of petroleum after the spill.

Thomas Cullen, administrator of the California Department of Fish and Wildlife's Office of Spill Prevention and Response, noted the significance of the settlement in a statement.

"With this settlement, Crimson and their contractor will pay a significant penalty, improve its oil spill preparedness and response operations, and compensate the public for natural resource damages," Cullen said. "The public should know that when an oil spill happens in California, we will hold those responsible accountable and require a thorough and rapid cleanup and restoration."

The disbursement of the settlement includes $900,000 in civil penalties from Crimson, with $600,000 being paid to the District Attorney's Office and the California Department of Fish and Wildlife. The penalties also include $387,700 for reimbursement of investigation and attorney costs; $20,000 to pay for damages to natural resources; and required compliance with the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act, as well as improved oil spill prevention and response measures.

CD Lyon's settlement will require reimbursing the District Attorney's Office with $115,000 in investigation and attorney costs, in addition to $185,000 to the California Department of Fish and Wildlife.

Jeremy Childs is a breaking news and public safety reporter covering the night shift for the Ventura County Star. He can be reached by calling 805-437-0208 or emailing jeremy.childs@vcstar.com. You can also find him on Twitter @Jeremy_Childs.

2020 Journal Media Group
Berkshire Hathaway
Advisen