Amplify Energy agrees to pay $5 million to California for oil spill

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Amplify Energy agrees to pay $5 million to California for oil spill
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Houston-based Amplify Energy said Thursday it has agreed to pay nearly $5 million in...

Oil spill cleanup crew members from New Jersey clean up the oil spill at Huntington State Beach in Huntington Beach, California, Sunday, Oct. 10, 2021. Environmental cleanup crews are spreading out across Huntington Beach and Newport Beach to cleanup the damage from a major oil spill off the Orange County coast that left crude spoiling beaches, killing fish and birds and threatening local wetlands.

In the proposed agreement, Amplify will plead no contest to six misdemeanor charges in Orange County Superior Court, including failure to immediately report a discharge of oil into state waters and killing protected wildlife, according to. If approved by the court, Amplify will pay fines to Orange County and the state totaling $4.9 million.

In a separate legal challenge related to the spill, Amplify in August pleaded guilty to one federal count of misdemeanor negligent discharge of oil and agreed to a $7 million fine. In a statement, Amplify said if both agreements are approved it will resolve all criminal matters regarding the spill. Also in August Amplify said it reached an agreement in principle with more than a dozen businesses and residents that brought a class action suit to resolve all civil claims against the company. Amplify said the company’s insurance policies will fund the settlement and did not disclose the amount.

Federal investigators determined the ruptured pipeline was compromised as early as January 2021 when it was struck by a cargo ship’s anchor. Amplify has filed lawsuits in California District Court against two major shipping companies for their alleged roles in the spill.

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