Company found guilty of criminal negligence pays a staggering $72.5 million settlement: '[This] holds the operator accountable'

In Refugio Beach, Santa Barbara, a ruptured pipeline, resulting in thousands of barrels of oil polluting the ocean back in 2015, is finally seeing an end to a lengthy series of court cases with the company paying $72.5 million settlement for damages.

What's happening?

Plains All American, the company that owned the ruptured line 901, was found guilty of negligence for failing to maintain its infrastructure that contaminated the coastline. The spill resulted in 126,000 gallons of crude oil contaminating California's coastline.

According to Lawyer Monthly, the California State Lands Commission and Aspen American Insurance filed a lawsuit against Plains All American in 2020 accusing the company of negligence, willful misconduct, and interference with economic opportunities related to the cleanup and restoration efforts following the spill.

Significant environmental damage followed the spill as marine ecosystems and the beach area were greatly impacted, harming wildlife and local industries. The cleanup efforts were costly, and both private and public organizations worked to restore the coastline. Costs of cleanup, legal fees, fines, and other financial impacts related to the spill made up the $72.5 million settlement.

Why is the settlement important?

The settlement is said to be crucial in addressing the impacts of infrastructure neglect that can harm the environment. Joe Stephenshaw, the California department of finance director, commented for Lawyer Monthly that the settlement "holds the operator accountable and provides appropriate compensation to the state for the fiscal damages caused by this spill."

Along with accountability, the settlement is said to have "sparked broader discussions on pipeline safety, corporate responsibility, and environmental protection, calling for more stringent measures to prevent such spills in the future."

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The Global Climate Change Litigation database estimated that as of Sept. 17, 2024, there were 1,850 cases filed in the U.S. alone — a number that has been boosted following the adoption of the landmark Paris Agreement. This indicates that the outcome of the settlement could impact other cases throughout the country, especially with the polluter pay principle, which is gaining traction in environmental law.

What's being done about greenwashing trends among companies?

To appeal to the population's growing concerns over our warming planet, companies are promoting empty green promises while significantly damaging the environment. Big oil companies are notorious for greenwashing, with some calling it the new approach to climate denial.

Out of the 1,850 cases filed in the U.S., 47 have been filed against greenwashing, indicating that environmental institutions are gaining an upper hand on these practices.

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Consumers are also getting better at recognizing greenwashing as they are familiarizing themselves with sustainability and climate brands that provide trusted info.

For consumers interested in educating themselves on greenwashing, The Cool Down recommends trusting their gut if they are skeptical of a company's sustainability claims and then seeing if the brand or item has third-party certifications or credentials.