Facts

Defendant Pacific Pipeline Systems LLP, a Long Beach-based oil transport company, used pipelines to transport oil. In March 2005, a landslide caused part of its underground pipeline, running from Bakersfield to Los Angeles, to rupture. The ruptured pipeline caused about 3,393 barrels of oil to spill into Pyramid Lake, which is part of the California Aqueduct and a potential drinking water supply. The U.S. Environmental Protection Agency (EPA) brought suit under the Federal Clean Water Act, a strict liability statute.

PLAINTIFF'S CONTENTIONS:
The EPA contended that Pacific Pipeline was liable for the spill because the Federal Clean Water Act is a strict liability statute.

Result

In a settlement agreement, Pacific Pipeline agreed to discontinue use of about 70 miles of the pipeline at issue. Reuse of the pipeline may be allowed at a later date. Also, Pacific Pipeline agreed to perform specific actions to relocate the pipeline into more geologically stable areas. Finally, Pacific Pipeline agreed to pay $1.3 million for a civil penalty, under the strict liability provisions of the Federal Clean Water Act. A parallel criminal case was brought, in which Pacific Pipeline as also represented by Mesereau & Yu, LLC, was dismissed with prejudice.

Other Information

The consent decree is subject to a 30-day public comment period and approval by the federal court.