Dozens of businesses lost revenue after the East LA oil spill. Only one has been reimbursed

This story first appeared on The LA Local.

Two months after an oil spill shut down streets in East Los Angeles and disrupted businesses along the Cesar E. Chavez Avenue corridor, many owners are still waiting for reimbursement.

The May spill forced street closures after crews punctured an underground pipeline, sending more than 25,000 gallons of crude oil onto nearby streets and into storm drains. Along the commercial corridor, owners of restaurants, barbershops and bike shops had to cancel appointments, delay deliveries or close their doors for a week as cleanup crews worked in the area.

What the spill cost businesses

In the days following the spill, a survey of nearly 50 businesses near the intersection of East Cesar E. Chavez and Eastern avenues found a 70% to 75% loss in revenue, according to Kelly LoBianco, director of the LA County Department of Economic Opportunity.

“You know how the barbershop gets on a Friday. … We lost a lot of business that week,” said Barber Avila, owner of Brooklyn Lab Barbershop. Avila preferred not to share his first name for this story.

For the past month, Avila has been working with LA County and pipeline operator Pacific Pipeline System (PPS) to submit documents – including tax records, sales reports and expenses – to show how the spill affected his business and file a claim for reimbursement.

Avila said his claim was approved this week and he is now awaiting payment.

Reimbursement has been slow

Many other businesses are seeking reimbursement from PPS, but the process has been slow, LoBianco said.

As of Tuesday, 19 businesses had filed claims. Only one had been approved, while three others were close to approval, LoBianco said. She did not have details on the amount reimbursed.

Veronica Ramos, co-owner of Ramos Industries, a commercial and residential glass and aluminum contractor, said she was reimbursed by PPS a week after submitting a claim. The spill caused contracted jobs to be canceled and deliveries to be rescheduled for a fee because trucks could not access the shop.

Ramos said her business had a bookkeeper who was able to quickly gather the required documents but she worries her neighbors may struggle to provide the needed records for a claim.

A PPS spokesperson said claims are still being accepted and processed. A third-party claims administrator has been helping businesses with the filing process in English and Spanish, the company said.

“We understand how important a timely resolution is for those affected and remain committed to working through each claim as efficiently as possible,” PPS said.

Cleanup could stretch into 2027

What lies ahead are months of soil testing and excavation to remove contaminated soil from the site of the spill, which county officials say could continue into January 2027. Neither Avila nor Ramos knew about the remaining work and worried about how additional street closures could affect their business again.

“It’s good to keep it in mind,” Ramos said.

Was your business affected by the oil spill?

Anyone who believes they were impacted by the oil spill can still contact the PPS claims line at 1-877-817-5465 to be connected to a third-party administrator who can guide them through the process in English and Spanish, PPS said. There is currently no deadline to submit a claim.

The Department of Economic Opportunity’s Office of Small Business (OSB) is continuing to provide guidance on claim preparation, documentation requirements, and submission for affected businesses. To book a one-on-one appointment, businesses can:

• Call OSB at (844) 432-4900,
• Visit OSB’s East LA Entrepreneurship Center located at 4716 E. Cesar E. Chavez Ave., or; 
• Email osb@opportunity.lacounty.gov. 

All impacted businesses seeking assistance should indicate that their request is related to the East LA oil spill.

How to avoid scams:

Rafael Carbajal, director of the LA County Department of Consumer and Business Affairs (DCBA) said bad actors may prey upon communities during environmental disasters like the oil spill including contractors and legal services providers.

Carbajal said the DCBA office is helping residents verify contractors, legal services providers and is providing information on their website on how to recognize scams.

Residents who have concerns or questions can call the DCBA hotline at (800) 593-8222.