Shipping businesses will pay Amplify Energy Corp. $96.5 million to settle Amplify’s claims of damages caused from anchor strikes that eventually led to a 2021 southern California pipeline incident.
Amplify said in a March 1 press release that M/V Danit and M/V Beijing and their affiliated corporate entities will pay the settlement. The Marine Exchange of Southern California agreed to a non-monetary settlement.
The anchors of the ships struck and damaged the San Pedro Bay Pipeline in October 2021, spilling an estimated 24,500 gallons of oil offshore Huntington Beach, California, according to a report by the National Oceanic and Atmospheric Administration.
“The resolution of Amplify’s claims against the vessels and their affiliated entities concludes our involvement in the litigation related to the 2021 pipeline incident, which has demanded considerable focus and allocation of company resources,” said Martyn Willsher, Amplify president and CEO.
The settlement includes subrogation claims by Amplify’s property damage and loss of production insurers and will ultimately give Amplify a net payment of around $85 million. After payment is made, Amplify has agreed to dismiss all legal claims against the parties.
“We are eager to move forward and turn the page on this unfortunate and preventable event and to dedicate all of our attention to operations at Beta, our business as a whole and the strategic direction of the company,” said Willsher. “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.”
Amplify is an independent oil and natural gas company with operations in Oklahoma, Texas, Louisiana, the Rockies and offshore California.