CALIFORNIA
A federal judge ruled that an oil company displayed gross negligence and recklessness involving a 2015 oil spill in Santa Barbara County, California, officials stated.
As a result, U.S. District Judge Fernando M. Olguin ordered the company to pay $65 million to the federal government and State of California, the Department of Justice announced Monday.
Federal and state authorities filed a lawsuit alleging that HVI Cat Canyon Inc., formerly known as Greka Oil & Gas Inc.,was grossly negligent.
HVI Cat Canyon, which previously owned and operated multiple oil and gas production facilities in Santa Barbara County, California, was liable for the following acts:
- 12 oil spills into waters of the United States in violation of the Clean Water Act;
- 17 oil spills into waters of the state in violation of state law;
- Reimbursement of the federal and state governments’ costs of cleaning up the oil spills;
- Natural resource damages under state law for harm to fish, plant, bird, or animal life and habitat; and
- Numerous violations of federal Oil Pollution Prevention Regulations identified in 16 EPA inspections across 11 facilities.
The court found that the spills had discharged approximately 26,584 barrels of crude oil and produced water, a briny waste by-product of oil production.
The court also ruled that HVI Cat Canyon had committed 60 violations of federal regulations at 11 facilities for 86,842 days.
“Based on the totality of the circumstances, the spills evinced a pattern of reckless disregard for good oilfield industry practices, and a series of negligent acts or omissions by HVI concerning oil spill prevention, and pipeline and facility inspection and maintenance,” the judge wrote.
(ABC News Report 2015)
To read the Final Judgement, click here: Oil Spill
The court’s judgment follows an earlier 65-page opinion dated Feb. 25, in which the court awarded the federal and state governments the full amount of civil penalties, response costs, and damages that they sought at trial.
“We applaud the court’s decision to hold HVI Cat Canyon responsible for the full extent of the harm they caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “This outcome is a prime example of strong federal and state partnership and persistence in pursuing justice against a company that long flouted its compliance obligations.”
“This final judgment reflects EPA’s continued commitment to ensuring companies that operate oil and gas production facilities comply with federal clean water laws and prevent unnecessary oil spills,” said Regional Administrator Martha Guzman of EPA Pacific Southwest. “Holding companies responsible for failing to meet their environmental obligations is key to protecting our waterways and surrounding communities.”
“The California Department of Fish and Wildlife is committed to protecting our state’s pristine natural resources,” said CDFW Director Charlton H. Bonham.
“HVI Cat Canyon, formerly GREKA, is being held accountable in their long history of multiple violations and on-going non-compliance across many agencies,” said Regional Water Board Chair Jane Gray.
The court found that the 12 spills into the waters of the United States, which occurred from 2005 through 2010, resulted from HVI Cat Canyon’s gross negligence.
The court found that the spills had discharged approximately 26,584 barrels of crude oil and produced water, a briny waste by-product of oil production. The court also ruled that HVI Cat Canyon had committed 60 violations of federal regulations at 11 facilities for 86,842 days.
The court stated HVI Cat Canyon liable to the United States for $40 million in civil penalties for the spills, $15 million in civil penalties for the violations of federal regulations, and $2.5 million in cleanup costs.
The court also stated Cat Canyon was liable to California for $7.7 million in civil penalties and nearly $200,000 in natural resource damages and cleanup costs.