Lt. Governor and State Lands Commissioner Eleni Kounalakis Announce $72.5 Million Settlement from Plains All American Pipeline

Lieutenant Governor and State Lands Commissioner Eleni Kounalakis Announce Landmark $72.5 Million Settlement for California in Refugio Beach Oil Spill Case

For Immediate Release
Tuesday, November 12, 2024  
Contact: [email protected], (916) 445-8994

SACRAMENTO - Today, Lieutenant Governor Eleni Kounalakis, alongside the California State Lands Commission, announced a $72.5 million settlement with Plains All American Pipeline, marking a significant step forward in California's long-standing efforts to address damages from the 2015 Refugio Beach oil spill. The settlement, reached after years of dedicated legal efforts by the Commission, underscores California's commitment to holding polluters accountable for environmental degradation and financial impacts on taxpayers.

The 2015 oil spill caused by Plains All American Pipeline inflicted widespread environmental harm, spilling more than 120,000 gallons of crude oil into the Pacific Ocean. Following the rupture of Line 901, the spill devastated Santa Barbara County's beaches and marine ecosystems, resulting in beach closures, wildlife deaths, and economic losses in the region. After the incident, Plains' negligence led to significant decommissioning costs for the state and a loss of royalty income, further burdening California taxpayers. In 2018, the State Lands Commission, along with Aspen American Insurance Company, filed a lawsuit against Plains to recover costs associated with these impacts.

The total settlement amount is $72.5 million, of which $22 million will go to Aspen American Insurance Company, the bonding company, covering Platform Holly, and co-plaintiff in the litigation.

For more information regarding the announcement, go to the California State Lands Commission's press release here.

WHAT THEY'RE SAYING:

Lieutenant Governor and Commissioner Eleni Kounalakis:

"Today's landmark settlement marks a resounding victory for California. As Chair of the State Lands Commission, I have worked alongside my fellow commissioners to hold polluters accountable and push for a future free from catastrophic oil spills and environmental degradation. This outcome reflects years of relentless effort to demand justice, address the damage left by negligent operators, and reaffirm our commitment to protecting California's coastline and natural resources. We remain steadfast in leading the charge towards a clean, sustainable energy future."

State Controller and Commission Chair Malia M. Cohen:

"This settlement is a resounding victory that provides taxpayers with tens of millions of dollars. Throughout this process, the Commission has been a fierce advocate for California taxpayers and the environment. Because of our impassioned efforts and tenacity, we were able to secure this landmark settlement."

Commissioner and California Department of Finance Director Joe Stephenshaw:

"This settlement strikes a balance that both holds the operator accountable and provides appropriate compensation to the state for the fiscal damages caused by this spill."

ABOUT THE OFFICE OF LIEUTENANT GOVERNOR:

The Lieutenant Governor serves on, and rotates with the State Controller, as chair of the three-member State Lands Commission, which oversees the control and leasing of millions of acres of state-owned land, including offshore oil resources, as well as use and permitting for all navigable waterways in California. The Commission also manages state land-use planning and revenues, and related interstate issues. During alternate years, when the Lieutenant Governor serves as Chairperson of the State Lands Commission, she also serves as a member of the California Ocean Protection Council and as a non-voting member of the California Coastal Commission.

ABOUT THE STATE LANDS COMMISSION:

The Commission, an independent entity comprised of the Lieutenant Governor, State Controller, and the Governor's Director of Finance, manages over four million acres of land in California. In the past decade, the Commission has moved to the forefront of offshore oil and gas decommissioning and a clean energy future. The Commission recently approved the decommissioning projectfor Rincon Island offshore Ventura County and, having plugged and abandoned 30 wells on Platform Holly, is preparing to start the environmental review process to decommission the platform, one of four remaining oil and gas platforms in state waters. The Commission is also a trustee agency helping to administer a $22 million dollar Natural Resources Damage Assessment settlementto protect and restore coastal resources damaged in the Refugio Beach spill.

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