Sacramento, Nov. 12, 2024 -- In Refugio Beach, Santa Barbara, a ruptured pipeline, resulting in thousands of barrels of oil polluting the ocean back in 2015, is finally seeing an end to a lengthy series of court cases with the company paying $72.5 million settlement for damages. The settlement has $22 million to go to Aspen American Insurance Company the bonding company and co-plaintiff and $50.5 million will go to the state. Costs of cleanup, legal fees, fines, and other financial impacts related to the spill is an important victory for the taxpayers and advocates of environmental corporate responsibility.
Plains All American, the company that owned the ruptured line 901, was found guilty of negligence for failing to maintain its infrastructure that contaminated the coastline. The spill resulted in 126,000 gallons of crude oil contaminating California's coastline.
The California State Lands Commission and Aspen American Insurance filed a lawsuit against Plains All American in 2018 accusing the company of negligence, willful misconduct, and interference with economic opportunities related to the cleanup and restoration efforts following the spill.
“This settlement is a resounding victory that provides taxpayers with tens of millions of dollars,” said State Controller and Commission Chair Malia M. Cohen. “Throughout this process, the Commission has been a fierce advocate for California taxpayers and the environment. Because of our impassioned efforts and tenacity, we were able to secure this landmark settlement.”
Significant environmental damage followed the spill as marine ecosystems and the beach area were greatly impacted, harming wildlife and local industries. The cleanup efforts were costly, and both private and public organizations worked to restore the coastline.
Significant environmental damage followed the spill as marine ecosystems and the beach area were greatly impacted, harming wildlife and local industries. The cleanup efforts were costly, and both private and public organizations worked to restore the coastline.
The Global Climate Change Litigation database estimated that as of Sept. 17, 2024, there were 1,850 cases filed in the U.S. alone — a number that has been boosted following the adoption of the landmark Paris Agreement. This indicates that the outcome of the settlement could impact other cases throughout the country, especially with the polluter pay principle, which is gaining traction in environmental law.
Cases of Note
Grey Fox v. Plains All Am. Pipeline, No. CV1603157PSGJEM, 2024 WL 306222, (C.D. Cal. Jan. 9, 2024)
The Law
§ 27.3 Penalty adjustment table.
The statutes administered by the Coast Guard that authorize a civil monetary penalty. The “adjusted maximum penalty” is the maximum penalty authorized by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, as determined by the Coast Guard. The adjusted civil penalty amounts listed in Table 1 to this section are applicable for penalty assessments issued after June 17, 2020, with respect to violations occurring after November 2, 2015. The applicable civil penalty amounts for violations occurring on or before November 2, 2015, are set forth in previously published regulations amending this part.
Table 1 to § 27.3 - Civil Monetary Penalty Inflation Adjustments
The statutes administered by the Coast Guard that authorize a civil monetary penalty. The “adjusted maximum penalty” is the maximum penalty authorized by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, as determined by the Coast Guard. The adjusted civil penalty amounts listed in Table 1 to this section are applicable for penalty assessments issued after June 17, 2020, with respect to violations occurring after November 2, 2015. The applicable civil penalty amounts for violations occurring on or before November 2, 2015, are set forth in previously published regulations amending this part.
Table 1 to § 27.3 - Civil Monetary Penalty Inflation Adjustments
Edlin Gallagher Huie + Blum, serves as outside counsel for businesses, insurance companies, and the public sector. Our firm has deep trial experience to win motions and achieve defense verdicts.
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