Fines handed down in Plains All-American Pipeline criminal trial

The sentencing hearing in the Plains All-American Pipeline criminal trial began Thursday morning in Judge James Herman’s courtroom in Santa Barbara Superior Court.

By 4:15 p.m. on Thursday, Plains All-American Pipeline was ordered to pay $3,342,550 in fines with additional damages to be determined at a restitution hearing on July 10.

The Santa Barbara County District Attorney’s Office sent out a press release Friday that read, in part: While the Court made findings including that Plains knew or should have known their pipeline would rupture, stating that “[i]t was not a matter of if, but a matter of when,” Judge Herman denied the People’s request to impose probation and for a significantly larger fine. The Court retained jurisdiction over restitution for victims, and the next hearing on that issue will be held on July 10, 2019.

The press release also included a statement from Santa Barbara County District Attorney Joyce Dudley:

“This assault on our community,” said District Attorney Joyce E. Dudley, “correctly resulted in a historic felony conviction as a result of the Herculean efforts of Deputy District Attorney Kevin Weichbrod and the extraordinary team of Deputy Attorney Generals led by Brett Morris. Still, without the insight, fortitude and hard work of our jury, this success could have evaded our community.”

Plains’ media representatives sent the following statement Friday evening:

“In proceedings today in California Superior Court located in Santa Barbara County, Plains All American was ordered to pay approximately $3.35 million in fines and penalties for nine counts that were the subject of a jury verdict rendered in September 2018 related to its May 2015 oil spill in Santa Barbara County,” stated Brad Leone, Director of Communications and Government Relations.

“We take our responsibility to safely deliver energy resources very seriously, and we are committed to doing the right thing. We are sorry that this release happened, and we have and will continue to work hard to re-earn the trust of area residents.”

The Texas-based oil company was found guilty in September 2018 of nine counts, including knowingly discharging oil into state waters and failing to have an adequate response plan, linked to the Plains All-American Pipeline oil spill above Refugio Beach in May 2015.

Prosecutors proved that Plains All-American Pipeline management and employees committed a crime, knew about risks associated with pipelines and should have taken corrective action ahead of time.

Santa Barbara County Deputy District Attorney Kevin Weichbrod and Deputy Attorney General Brett Morris are among members of the prosecution team, led by the California Attorney General’s Office and Santa Barbara County District Attorney’s Office.

Weichbrod spent several hours during Friday morning’s sentencing hearing verifying that Plains’ upper management knew there were problems with its oil operation and ongoing maintenance issues.

Weichbrod called up several different witnesses including three former oil workers who are still out of a job. He also called a fisherman and property owner to the stand, both of whom suffered damage.

An attorney also testified on behalf of class action victims.

Linda Krop, Chief Counsel for the Environmental Defense Center in Santa Barbara, testified about the extent of damage done to the environment by the Plains All-American Pipeline spill. An estimated 140,000 gallons of crude oil spewed down the coastline and offshore into the Pacific Ocean.

“I highlighted the fact that even though the oil spill came from a pipeline it spread 150 miles down the coast affecting beaches and a big segment of the California coast, killing hundreds of marine mammals and birds and fish,” Krop said. “We will never know the true damage.”

Earlier Friday, Krop told reporters Alys Martinez and Beth Farnsworth that Judge Herman’s sentence could include fines, penalties, restitution or probation.

Prosecutors were asking for $1.2 billion dollars.

Plains’ media representatives were contacted Friday afternoon for comment and sent the following 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.”