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Plains All American agrees to pay about $73 mln to settle California oil spill lawsuit

Plains All American Pipeline has actually accepted pay $72.5 million to settle a claim over the 2015 Refugio Beach oil spill in Santa Barbara, a filing revealed on Tuesday.

The spill occurred after a pipeline, which ran across California's coastline, burst and spilled an estimated 126,000 gallons of oil into the ocean and on the beaches.

In 2020, the California State Lands Commission and insurance firm Aspen American Insurance had taken legal action against Plains All American - the operator of the failed pipeline - declaring negligence, willful misbehavior, and disturbance with potential economic benefit.

The state of California will get $50.5 million from the settlement, while Aspen will get $22 million.

Plains All American and Aspen Insurance did not instantly respond to Reuters' ask for comment.

This settlement ... holds the operator liable and offers proper settlement to the state for the fiscal damages triggered by this spill, Joe Stephenshaw, state lands commissioner and California Department of Financing director, said in a declaration.

As of Sept. 30, Plains All American had estimated the overall costs it has incurred or will sustain associated to the failed pipeline would have to do with $870 million.

(source: Reuters)