California Wins Historic $72.5 Million Settlement Over 2015 Refugio Beach Oil Spill

Plains All American Pipeline, a partnership that transports, markets and stores liquified petroleum gas and petroleum in Canada and the U.S., has agreed to pay $72.5 million to settle a lawsuit over the 2015 Refugio Beach oil spill.

The spill occurred when one of the company’s pipes broke, releasing an estimated 126,000 gallons of oil into the Pacific Ocean and the Santa Barbara County coastline.

The California State Lands Commission and Aspen American Insurance filed a lawsuit against Plains in 2018, saying that the company’s carelessness caused major environmental damage and financial losses.

Under the settlement, California will receive $50.5 million, and Aspen Insurance will receive $22 million.

California’s State Lands Commissioner, Joe Stephenshaw, says that the settlement holds the operator accountable and ensures that the state receives compensation for the damages caused by the spill.

The 2015 incident caused major environmental harm, and the state had to take on the responsibility of cleaning up the spill and managing the decommissioning of oil facilities.

The settlement tries to recover some of the costs the state paid for the cleanup.

Malia M. Cohen, California’s state controller and chair of the commission, described the settlement as a major victory for California taxpayers, with the commission’s efforts to obtain millions of dollars in compensation.

After the pipeline was ruptured, the company Venoco, which operated it, declared bankruptcy and stopped operations in California waters.

This left the California State Lands Commission responsible for managing the environmental cleanup and decommissioning efforts.

Lieutenant Governor Eleni Kounalakis, a member of the State Lands Commission, said that the settlement reflects years of struggle to hold Plains All American Pipeline responsible for its actions.

She added that they remain committed to protect the coastline and natural resources of California.

The settlement follows a 2023 court victory in which a federal judge ruled in favour of the commission, reaffirming its efforts to protect public health and safety by managing oil operations in the region.

Reference: California State Lands Commission

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