Texas Pipeline Company Fined Millions for Illegal Oil Discharge

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Houston-based oil company and two subsidiaries were indicted for a crude spill that fouled Southern California waters and beaches in October, an event prosecutors say was caused in part by failing to properly act when alarms repeatedly alerted workers to a pipeline rupture, reports NBC News.

Illegal oil discharge

Amplify Energy Corp. and its companies that operate several oil rigs and a pipeline off Long Beach were charged by a federal grand jury with a single misdemeanor count of illegally discharging oil.

Investigators believe the pipeline was weakened when a cargo ship’s anchor snagged it in high winds in January, months before it ultimately ruptured Oct. 1, spilling up to about 25,000 gallons of crude oil in the ocean.

U.S. prosecutors said the companies were negligent six ways, including failing to respond to eight leak detection system alarms over a 13-hour period that should have alerted them to the spill and would have minimized the damage. Instead, the pipeline was shut down after each alarm and then restarted, spewing more oil into the ocean.

Leak from undersea pipe 

Amplify blamed the unnamed shipping company for displacing the pipeline and said workers on and offshore responded to what they believed were false alarms because the system wasn’t functioning properly. It was signaling a potential leak at the platform where no leak was occurring, the company said.

The leak, in fact, was from a section of undersea pipe 4 miles miles away, Amplify said.

Read more here. 

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Source: NBC News