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Amplify Energy to pay $5 million to Huntington Beach after 2021 oil spill
Oil is washed up on Huntington State Beach after a 126,000-gallon oil spill from an offshore oil platform on October 3, 2021.
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Topline:
Huntington Beach officials on Monday announced they had reached a $5.2-million settlement with Amplify Energy over the 2021 oil spill off the Orange County coast. The spill closed nearby beaches and harbors, and prompted the controversial cancellation of the city's annual airshow.
Oil spill details: On Oct. 1, 2021, a pipeline carrying oil from a platform spilled an estimated 24,500 gallons of crude oil into the ocean 4.5 miles offshore. Boaters reported seeing oil in the water the next day, and by the second day after the spill, it was washing up along Huntington Beach and Newport Beach.
The cleanup required more than 1,800 workers and at least 116 dead birds were found, according to the National Oceanic and Atmospheric Administration.
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Today's settlement is the last of the remaining claims against Amplify Energy over its involvement in the oil spill. In a statement to LAist, an Amplify spokesperson said the settlement is an example of its "commitment to the communities impacted [by] the incident, which the NTSB determined was caused by two international vessels dragging their anchors across the Pipeline."
The airshow controversy: Huntington Beach decided to cancel the third day of the airshow amid public health concerns and the cleanup. Later, the airshow operator, Pacific Airshow, sued the city, calling it a breach of contract. The city ultimately agreed to pay the company $5 million in installments through 2029, plus other financial benefits for future airshows.
The majority of city councilmembers and City Attorney Michael Gates have defended the settlement. Critics say it was an unnecessary giveaway of taxpayer money.
Settlement details: The airshow settlement included a provision requiring the city to pay an additional $2 million to the airshow operator if the city recouped costs from Amplify Energy related to the airshow's losses. But Gates told LAist the $5.2-million settlement reached late last week will go to the city's coffers only. That's because, he said, the airshow is pursuing its own legal fight against the oil company.
Other oil spill settlements: Separately, Amplify Energy has already settled a class action lawsuit for $50 million with businesses and residents affected by the oil spill. In 2023, the shipping companies that caused the pipeline to split also agreed to pay $45 million to affected businesses and residents.
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