Shipping Companies Reach $97 Million California Oil Spill Deal

Shipping companies will pay nearly $97 million to settle a lawsuit with a pipeline operator over a 2021 oil spill off the coast of Southern California, the pipeline company said Wednesday.

Amplify Energy, the Houston-based pipeline operator, said in a statement that companies associated with M/V Danit and M/V Beijing have agreed to the payments. Amplify accused the ships of dragging anchors in waters off the coast of California and hitting a pipeline during a storm in January 2021, spilling 25,000 gallons (94,600 liters) of crude oil into the Pacific Ocean a few months later.

Once the payments have been made, Amplify has stated that it will drop its claims against the shipping companies.

“The resolution of Amplify’s claims against the courts and their affiliates ends our involvement in the 2021 pipeline incident litigation,” Martin Wilshere, President and CEO of Amplify, said in a statement.

Messages asking for comment were sent to the shipping companies’ lawyers.

Although the oil spill was less severe than originally feared, the oil spill washed ashore with drops of crude oil, beaches were closed for a week and fishing for more than a month, birds were oiled and wetlands were threatened .

Fishermen, travel companies and Southern California property owners have sued Amplify and shipping vessels seeking compensation for their losses. Amplify agreed to pay $50 million and the courts agreed to pay $45 million to settle these lawsuits.

Amplify, which struck a plea deal with federal authorities for carelessly dumping crude oil, is suing ships and the Sea Exchange, an organization that helps control shipping.

The statement said the maritime exchange also agreed to a non-cash settlement with Amplify. The details of this settlement were not immediately disclosed.