Amplify Energy reaches $97M California oil spill agreement with shipping firms

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Amplify Energy reaches $97M California oil spill agreement with shipping firms
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SANTA ANA, Calif. — Shipping companies will pay nearly $97 million to settle a lawsuit...

This aerial image taken with a drone, shows the closed beach after oil washed up in Newport Beach, Calif., on Oct. 7, 2021. Shipping companies have agreed to pay nearly $97 million to settle a lawsuit with a pipeline operator over a 2021 oil spill off the coast of Southern California. Amplify Energy, the Houston-based company that operates the pipeline, said Wednesday, March 1, 2023, that companies associated with the M/V Danit and M/V Beijing had agreed to the payments.SANTA ANA, Calif.

Amplify Energy, the Houston-based company that operates the pipeline, said in a statement that companies associated with the M/V Danit and M/V Beijing agreed to the payments. Amplify accused the vessels of dragging anchors in the waters off California and striking the pipeline during a January 2021 storm, which months later led to the spill of 25,000 gallons of crude oil into the Pacific Ocean.

Southern California fishermen, tourism companies and property owners sued Amplify and the shipping vessels seeking compensation for their losses. Amplify agreed to pay $50 million and the vessels agreed to pay $45 million to settle those lawsuits. Amplify, which reached a plea deal with federal authorities for negligently discharging crude, sued the vessels and the Marine Exchange, an organization that helps oversee marine traffic.

The Marine Exchange has also agreed to a non-monetary settlement with Amplify, the statement said. No details of this settlement were immediately released.

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