Plains All American To Pay $230M To Settle 2015 California Oil Pipeline Spill Lawsuit: WSJ

According to attorneys and court documents, Plains All American Pipeline L.P. PAA has agreed to pay $230 million to settle a class-action lawsuit brought by fishermen and property owners. 

PAA owns an oil pipeline that caused a 4-mile-long spill along a California beach in 2015.

In 2016, federal regulators faulted Plains All American for its failure to prevent the disaster, which was blamed on a corroded pipeline. 

According to court documents, Plains All American Pipeline will pay $184 million to those affected within the fishing industry and $46 million to property owners if the settlement is reached.

The company didn’t admit liability in the agreement, which would cap seven years of litigation if approved. Wall Street Journal reported that a hearing on the pending settlement is scheduled for June 10.

The oil spilled from a large pipeline running under U.S. Highway 101 equipped to carry up to 150,000 barrels of oil a day. It was used to transport crude oil from an inland facility inland owned by Exxon Mobil Corp XOM.

Price Action: PAA closed 0.86% higher at $10.52 on Friday.