Amplify Energy to pay $5 mln to settle criminal charges over California oil spill

Sept 8 (Reuters) – California officers on Thursday mentioned Amplify Energy Corp (AMPY.N) agreed to plead no contest to six criminal charges and pay practically $5 million in penalties and fines in reference to a crude oil spill final 12 months that killed birds and fouled seashores.

The announcement was the most recent authorized effort to maintain the Texas-based oil firm accountable for a subsea pipeline leak that launched some 558 barrels (25,000 gallons) of crude oil into the Pacific Ocean off the coast of Huntington Beach in southern California in October of final 12 months.

At a news convention broadcast stay on the web, California Attorney General Rob Bonta and Orange County District Attorney Todd Spitzer mentioned the corporate had repeatedly turned on and off the 17-mile-long pipeline when it was alerted to the leak.

“Amplify unequivocally hit the snooze button,” Spitzer mentioned. “Over and over they kept ignoring it. That is criminal. And that is why they have been charged.”

Months earlier than the spill, excessive winds triggered two ships to drag their anchors throughout the ocean flooring, bending and shifting the pipeline and ultimately inflicting its cement casing to crack, the state mentioned.

As a part of the settlement, Amplify will plead no contest to charges for failing to report an oil spill into state waters, polluting water and killing protected wildlife.

It will pay $3.45 million to the state and $1.45 million to Orange County.

Amplify Chief Executive Martyn Willsher mentioned in a press release that the corporate was dedicated to working safely.

“This resolution with the State of California, which follows Amplify’s plea agreement with the U.S. Attorney’s office, further reflects the commitments we made immediately following the incident to the communities and environment impacted by the release,” he mentioned.

The plea settlement additionally requires the corporate to prepare staff on oil spill notification, set up an improved leak detection system and conduct biannual visible inspections of its pipeline.

Last month, Amplify agreed to plead responsible to federal criminal negligence charges and pay practically $13 million for the spill. learn extra

(This story corrects to present firm entered a no contest plea, not a plea of responsible, in first paragraph)

Reporting by Nichola Groom
Editing by Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles.