Amplify Energy to pay millions of dollars in fines to end oil spill state charges

Orange County will be receiving at least $2 million of the over $10 million in fines. Photo from The Panther Archives

Almost a year after the Oct. 1 oil spill in Huntington Beach where approximately 25,000 gallons of petroleum were spilled from an underwater pipeline, the three companies under the “Amplify” umbrella are pleading no contest to six misdemeanor charges. 

Among these charges are “Failing to Immediately Report a Discharge of Oil in Waters of the State” and numerous counts from three sections of Fish and Game Code. The three companies charged by the state are Amplify Energy, Beta Operating Company and San Pedro Bay Pipeline.

At a Sept. 8 press conference hosted by California Attorney General Rob Bonta and Orange County District Attorney Todd Spitzer, the two announced the charges and stated that all three companies would have to pay millions of dollars in fines. Additionally, the companies would be put on a one-year probation and have to reimburse federal agencies for the expenses incurred during the spill response.

“This oil spill should never have occurred, but today’s outcome marks an important step towards accountability,” Bonta said at the press conference. “Others should take note, no matter the industry, from big oil to big pharma, no corporations get a free pass to break the law. If you pollute our environment, the California Department of Justice (and) the Orange County District Attorney’s office will hold you accountable.”

Spitzer shared the same sentiment, stating that the three companies received criminal charges since they knew of the leak from their leak detection system, yet they didn’t shut the pipeline down or notify the authorities until several hours later.

The companies must pay a $7.1 million federal fine payment and also pay $4.9 million in fines and penalties to the state, which is currently the largest state misdemeanor criminal fine in the county’s history. Approximately $1.5 million of these fines will be given to the county, serving as a penalty payment that will be allocated towards environmental protection and enforcement, according to OC Supervisor Katrina Foley.

Foley also told The Panther that the county settled a separate claim for almost $1 million, which will serve as complete compensation for all out-of-pocket expenses related to the cleanup, including attorney’s fees.

As for the probation, employees must now undergo training and receive instructions on notifying and updating the appropriate agencies whenever a spill occurs. Other aspects include the installation of an improved leak detection system on the pipeline and having additional safety measures such as visual inspections for the pipeline twice a year.

Martyn Willsher, the president and chief executive officer of Amplify Energy, commented in the company’s Sept. 8 press release that the resolution with the state “further reflects the commitments” that the company made immediately after the spill to the communities and environment affected by it.

“We worked diligently to support the successful clean-up and remediation efforts, including deploying upwards of 1,800 oil spill response contractors, have paid covered claims as expeditiously as possible and continue to work cooperatively with the various state and federal agencies investigating these matters,” Willsher said. “Amplify Energy remains committed to safely operating in a way that ensures the protection of the environment and the surrounding communities.”

California State Assemblywoman Cottie Petrie-Norris (D-Laguna Beach) wrote in a Sept. 8 press statement that this development meant her promise to residents that the responsible parties would be held accountable had been fulfilled. Petrie-Norris also serves as the chair of the CA State Assembly’s Select Committee on the Orange County Spill.

“This is a win for OC residents, a win for California’s natural resources and a clear message to polluters that they will not get away with negligent and criminal misconduct in our community,” Petrie-Norris said.