Shipping companies will pay nearly $97 million to settle a lawsuit with a pipeline operator over a 2021 oil spill off the coast of Southern California, the pipeline company said Wednesday 1 Mar.
Amplify Energy Corp. (AMPY) announced that it has reached a settlement of its claims against the M/V Danit and its affiliated corporate entities. The M/V Beijing and its affiliated corporate entities, as well as the COSCO marine entities and the Marine Exchange.
On February 9, multiple shipping companies agreed to pay Orange County residents whose businesses and property were damaged by. Currently, the additional terms of a formal settlement are still being negotiated and once reached will have to be approved by the Court.
Now, the M/V Danit and its affiliated corporate entities have agreed to pay Amplify $96.5 million in connection with the anchor strikes by the containerships that damaged the pipeline, interrupted Amplify’s business and led to the 2021 Southern California Pipeline Incident. The overall resolution includes subrogation claims by Amplify’s property damage and loss of production insurers, with Amplify ultimately receiving a net payment of approximately $85 million.
The Marine Exchange has agreed to non-monetary terms in this settlement as well. The parties are working to finalize the settlement agreement documentation. The settlement resolves Amplify’s affirmative claims related to the 2021 Southern California Pipeline Incident. As part of the settlement, after payment is made, Amplify will dismiss all of its legal claims against those parties.
The resolution of Amplify’s claims against the vessels and their affiliated entities concludes our involvement in the litigation related to the 2021 pipeline incident, which has demanded considerable focus and allocation of Company resources. We are eager to move forward and turn the page on this unfortunate and preventable event and to dedicate all of our attention to operations at Beta, our business as a whole and the strategic direction of the Company.
..commented Martyn Willsher, Amplify’s President and Chief Executive Officer.
Southern California fishermen, tourism companies and property owners sued Amplify and the shipping vessels seeking compensation for their losses. Amplify agreed to pay $50 million and the vessels agreed to pay $45 million to settle those lawsuits.
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