Oil transport company agrees to $1.3 million penalty for 2005 oil spill in Southern California

By AP
Thursday, January 21, 2010

Company to pay $1.3 million for SoCal oil spill

LONG BEACH, Calif. — An oil transport company has agreed to pay $1.3 million for an oil spill in 2005 into Pyramid Lake, a reservoir that holds water for Southern California cities.

The Justice Department and U.S. Environmental Protection Agency announced the settlement Wednesday with Pacific Pipeline Systems LLP, based in Long Beach.

A landslide five years ago caused a portion of underground pipeline that transports crude oil from the San Joaquin Valley to Los Angeles-area refineries to fail. It caused nearly 3,400 barrels of oil to spill. Officials have said they were not concerned about potential contamination of the region’s drinking water.

As part of the settlement, the company agreed to discontinue the use of a section of pipeline.

Pyramid Lake is about 60 miles northwest of Los Angeles.

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