A Texas oil company agreed to plead guilty to criminal negligence charges and pay nearly $13 million for a crude oil spill that killed wildlife and fouled southern California beaches, federal prosecutors said on Aug. 26.
Amplify Energy Corp. repeatedly turned off and on a 17-mile-long subsea pipeline when it could not determine the location of the leak, according to plea agreements filed in U.S. District Court, Central District of California.
The Houston-based company and two subsidiaries each agreed to plead guilty to one count of negligently discharging oil during the October 2021 incident. The pipeline was struck by a ship’s anchor.
The three firms “are required to make significant improvements that will help prevent future oil spills,” Acting United States Attorney Stephanie S. Christensen said in a statement.
The plea “reflects the commitments we made immediately following the incident to impacted parties and is in the best interest of Amplify and its stakeholders,” said CEO Martyn Willsher.
The spill released some 558 barrels (25,000 gallons) of crude oil into the Pacific Ocean, killing wildlife, blackening the coastline and forcing the closure of beaches south of Los Angeles.
A judge must still accept the plea agreement. The companies will serve probation for four years, be required to conduct semiannual pipeline inspections, and revise and submit an oil spill plan to state wildlife officials, the court filing showed.
Amplify has said it incurred $17.3 million in cleanup costs in the immediate aftermath of the spill.
The company this week said it reached an agreement in principle with plaintiffs to resolve civil claims.
Recommended Reading
If US Cancels, US Pays: Interior’s Burgum Calls for Sovereign Risk Insurance
2025-04-25 - With a sovereign risk insurance in place, a president cancelling a permit “would have to say ‘We're canceling this thing by fiat, but you get your money back that you've invested,” Interior Secretary Doug Burgum told energy industry members in Oklahoma City.
World Order at Risk, Warn US Security Experts
2025-04-25 - A panel of former State Department, National Security Council, National Intelligence Council and other officeholders expressed concern about the future of the U.S.’ relationships at CERAWeek by S&P Global.
Oxy’s Hollub: EOR Essential to Energy Security as Oil Supply Peaks
2025-04-25 - EOR will be essential in U.S. energy security as reservoirs currently supplying U.S. oil will peak in the coming few years, said Vicki Hollub, Oxy president and CEO.
AI Presents Complicated Puzzle for Already Stretched Energy Industry
2025-04-24 - The multifaceted U.S. energy market has a lot of competing priorities and AI is just one of them, ONEOK CEO Pierce Norton said at an event hosted by the Oklahoma State University Hamm Institute for American Energy.
NextEra Energy Expects to See Minimum Tariff Exposure
2025-04-23 - NextEra Energy CEO John Ketchum put the renewable energy unit’s exposure to tariffs at less than $150 million through 2028 on more than $75 billion in expected capex.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.