A federal judge in Santa Ana on Thursday, Sept. 14, signed off on a $95 million class-action settlement involving the 2021 oil spill in Huntington Beach, clearing the way for those affected to soon receive checks.
Judge David O. Carter had already approved in April a $50 million settlement between Houston-based Amplify Energy and the class-action plaintiffs, which includes fishers, tourist companies and homeowners. Thursday’s court hearing was largely about signing off on a $45 million settlement agreement with vessel companies MSC Danit and M/V Beijing; it also decided whether operators of the air show going on that weekend in Huntington Beach could be considered part of the class-action litigation.
Carter ruled that Pacific Airshow could get about $2 million from the settlement, but the payout might be less depending on how funds are allocated, said Wylie Aitken, an attorney for the plaintiffs. The air show’s claim would be part of the $50 million agreement.
The attorney for the air show, Dan Robinson, indicated the company may seek to opt out of the class-action suit, presumably so it could pursue a potentially more lucrative lawsuit on its own against Amplify Energy, which operates the pipeline that leaked about 25,000 gallons of crude into the ocean off Huntington Beach.
Aitken said he is “delighted on a number of levels” to wrap up the litigation. He said resolving a class-action lawsuit of this size within 15 months is unheard of and pointed to a 2015 oil spill in Santa Barbara that took about seven years to reach a settlement.
Aitken said those entitled to the settlement funds could expect their checks within the next couple of months.
“If there is anyone who has not put in a claim that we can identify, we will want to make sure that money gets out to them as well” he said.
The Pacific Airshow, which had its last day canceled in 2021 because of the spill, has already settled for almost $5 million with Huntington Beach. Huntington Beach could also pay Pacific Airshow up to $2 million more, depending on how much the city gets from its own lawsuit against Amplify Energy.
A spokesperson for Amplify Energy reached on Thursday referred to the company’s March statement when it announced it had reached its own settlement with MSC Danit and M/V Beijing. Amplify Energy President and CEO Martyn Willsher said then, “We are eager to move forward and turn the page on this unfortunate and preventable event … Amplify has operated off the coast of California for years in a safe and responsible manner and we remain committed to ensuring the safety and protection of our employees, the environment and our surrounding communities.”
Carter praised the terms of the settlements and the speed at which they were reached.
“Getting $95 million back to the public so quickly is beneficial,” Carter said, adding it was much better than the anticipated seven years of litigation if it went to trial. He appreciated how the attorneys worked out a way to get money to the affected waterfront tourism businesses when there were scant claims filed.
Last year, Amplify Energy settled criminal cases in state and federal court and agreed to pay fines. The company agreed in federal court to pay a $7.1 million fine and $5.8 million to reimburse the U.S. Coast Guard for expenses from the October 2021 spill and agreed to pay $4.9 million in fines to resolve a misdemeanor complaint in state court.
The pipeline, which is used to carry crude oil from several offshore drilling platforms to a processing plant in Long Beach, began leaking the afternoon of Oct. 1, 2021, but oil continued to pump through the line until the following morning, authorities have said.
About 25,000 gallons of oil seeped into the ocean from the ruptured 16-inch pipeline, which is submerged about 4.7 miles west of Huntington Beach. Beaches were closed up and down the Orange County coast as crews worked to contain the crude oil.
Federal investigators have said the pipeline appeared to have been damaged by a ship’s anchor, likely belonging to one of dozens of cargo ships that were backlogged over a period of months outside the Los Angeles-Long Beach port complex.
More than a dozen companies doing business in the region sued Amplify Energy for damages resulting from the spill.
Fishing resumed in late November 2021 along the Orange County coast, following a two-month shutdown of fisheries due to the spill. The fishing ban encircled 650 square miles of marine waters and about 45 miles of shoreline, including all bays and harbors from Seal Beach to San Onofre State Beach, officials said.
Staff Writer Michael Slaten contributed to this report.
