Environmental groups react to Plains All American Pipeline’s $3.3 million fine
Following the 2015 Refugio Oil Spill and a lengthy criminal trial, Plains All American Pipeline was sentenced Thursday to pay a nearly $3.35 million fine.
That number is well below the prosecution’s target of $1.2 billion.
Environmental groups were hoping for a harsher penalty.
“Three million dollars was a slap on the wrist,” Santa Barbara Sierra Club chair Katie Davis said. She thinks the penalty won’t do enough to hold oil companies accountable.
“This fine of only three million dollars is not going to change the behavior of a corporation like that that is a multi-billion dollar, hitting record profits,” she said.
During Thursday’s sentencing, Judge James Herman also questioned whether the fine was enough to discourage future spills. However, Herman said the fine was the biggest the law allowed.
Davis says if that’s the case, then the laws should be reconsidered, as should Plains’ plans for another pipeline in Santa Barbara County.
“Plains wants to build a whole new pipeline,” Davis said. “And this verdict is something we should really keep in mind when we’re evaluating that request.”
Plains responded to the fine in a statement:
Statement from Phil Smith, Sr. Vice President of Operations
“We are truly sorry for the Line 901 accident and for its impacts to the residents of Santa Barbara, the environment and area wildlife,” said Phil Smith, Senior Vice President of Operations. “From Day One, we have taken full responsibility and committed our resources to making things right. Importantly, this accident has further reinforced our focus on continuous improvement towards operating excellence.”
“The prosecution’s sentencing recommendations distort the truth, make false or misleading statements about Plains and characterize us as unremorseful. However, we have apologized consistently in word and demonstrated our remorse through our actions. We quickly and thoroughly cleaned up the oil, we reimbursed all costs of clean-up for the agencies involved and we made incremental improvements to area parks and beaches. We have diligently paid substantiated damage claims related to the release, and have worked proactively with regulators and industry to enhance pipeline safety efforts.”
“The prosecution has misrepresented our record and commitment to safety. At Plains, our nearly 5,000 employees, including nearly 200 in California, take very seriously our responsibility to safely deliver energy resources that power productivity, support innovation, and improve quality of life. Over the past 14 years, we have spent more than $4 billion on integrity and maintenance efforts throughout North America. Our focus on continuous improvement of our safety and integrity management practices is central to our culture as we strive to operate with zero incidents.”
A restitution hearing set for July 10 could bring more penalties that Plains All American would have to pay.
