Shipping companies reach $97 million settlement over California oil spill

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

Amplify Energy, the Houston-based company that operates the pipeline, said in a statement that companies related to M/V Danit and M/V Beijing agreed to the payments. Strengthen the accused vessels anchor drag in waters off California and hit a pipeline during a January 2021 storm that spilled 25,000 gallons (94,600 liters) of crude oil into the Pacific Ocean a few months later.

Once the payments are made, Amplify said it will drop claims against the shipping companies.

“The settlement of Amplify’s claims against the courts and its affiliates ends our involvement in the litigation related to the 2021 pipeline incident,” Martin Wilshere, president and chief executive officer of Amplify, said in a statement.

Requests for comment were sent to lawyers for the shipping companies.

Although less serious than first thought, the oil spill washed ashore in slicks of crude oil, closed beaches for a week and fisheries for more than a month, smeared birds with oil and threatened wetlands.

Southern California fishermen, tourism companies and property owners have sued Amplify and the cruise lines, seeking damages. Strengthen agreed to pay 50 million dollars and court agreed to pay $45 million to settle these lawsuits.

Amplify, which entered a plea agreement with federal authorities for negligent oil discharge, is suing the vessels and the Marine Exchange, an organization that helps monitor marine traffic.

Marine Exchange also agreed to a non-cash settlement with Amplify, the statement said. No details of this settlement were immediately released.

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