The company responsible for the 2015 Refugio spill has agreed to a settlement that will pay the state tens-of-millions of dollars for cleanup costs.
The settlement stems from a lawsuit filed by the California State Lands Commission and insurance company, Aspen American. They accused Plains All American Pipeline of burdening California taxpayers and Aspen with decommissioning and property damage costs.
The settlement requires Plains to pay a total of $72 million. More than $50 million will go to the state to cover costs it incurred to respond to the spill. This means taxpayers will no longer shoulder those expenses.
Sheri Pemberton, of the California State Lands Commission, said this settlement sends a clear message that companies can’t make taxpayers pay for their negligence.
“It's just terrific to see the settlement come through and to know that taxpayers and the state of California will recoup a lot of that money that it had to incur after the pipeline ruptured,” Pemberton said.
The remaining $22 million will go to Aspen American, which also paid part of the spill cleanup and decommissioning costs.
The settlement follows a vote by the Santa Barbara Planning Commission to transfer permits for the oil operation linked to the spill to a new company, Sable Offshore. A local environmental group is appealing that decision, citing concerns about the risk of another spill.
