Shipping firms to pay pipeline company nearly $100 million in O.C. oil spill

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A group of international shipping companies tentatively agreed to pay $96.5 million to Amplify Energy Corp. to dismiss one of the last lawsuits over the oil spill off Huntington Beach in October 2021.

A year and a half after a ruptured oil pipeline sent thousands of gallons of crude gushing into the waters off Southern California, the legal blame game is starting to wind down.

The lawsuit alleged the shipping companies should have notified authorities about the pipeline damage but did not. Investigators later said the massive anchors moving across the sea floor and striking or dragging the oil pipeline could have weakened the conduit by stripping away its concrete casing and making it more vulnerable to future damage.

The agreement comes as the parties prepared for a first phase of trial next month that would have determined whether Amplify was solely responsible for the oil spill and whether the seaworthiness of the container ships or any negligence by the crews or owners caused the pipeline damage or the oil spill.

The company said its experts have concluded the Danit “maneuvered safely, and that Amplify simply failed to properly maintain and inspect the pipeline.” It was “reasonable” for the crew to believe the container ship “had not been involved in a marine casualty reportable to the Coast Guard,” a representative for MSC said.

It is not clear what the Marine Exchange agreed to as part of the settlement. Kip Louttit, executive director of the organization, said Wednesday that, while their attorneys finalized the settlement details over the weekend, he hasn’t seen the official document and was not prepared to comment.to settle a lawsuit brought by business owners and coastline property owners over the effects of the spill..

 

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