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Texas Energy Company and Two Subsidiaries Sentenced for Negligence in Response to Offshore Oil Spill

On September 8, 2022, in the U.S. District Court for the Central District of California, Amplify Energy Corp. and its subsidiaries, Beta Operating Co. LLC (d/b/a Beta Offshore) and San Pedro Bay Pipeline Co. pleaded guilty to negligently discharging oil into the San Pedro Bay. In October 2021, approximately 25,000 gallons of crude oil were discharged during an offshore leak in the 17-mile long San Pedro Bay Pipeline. The pipeline, which was used to transfer crude oil from several offshore facilities to a processing plant in Long Beach, began leaking on the afternoon of October 1. However, the companies allegedly continued to operate the damaged pipeline intermittently until the next morning.
The companies were each sentenced individually to 4 years of probation and a $125 special assessment. Jointly, the companies were sentenced to a $7.1 million fine and approximately $5,844,700 in repayments for direct and indirect expenses incurred by the U.S. Coast Guard while responding to the oil spill, as well as funds expended from the Oil Spill Liability Trust.
DOT-OIG conducted this investigation with the Coast Guard Investigative Service, the U.S. Environmental Protection Agency, Criminal Investigation Division, and the FBI.