CITGO Fined $19M in 2006 Oil Spill Settlement

CITGO Fined $19M in 2006 Oil Spill Settlement

Introduction

CITGO Petroleum Corporation will have to pay approximately a $19.7M fine as a settlement for the 2006 oil spill n Louisiana. The announcement was made by the Department of Justice on Thursday, June 17, 2021. The Houston-based petroleum company was sued for damages caused to the natural resources. The damages were caused due to its refinery discharging oil in the nearby waterways of Lake Charles. The Justice Department mentioned in its press release that around 54,000 barrels of slop oil breached the faulty secondary containment berm along with unknown gallons of wastewater, which were oily. This oil and oily wastewater flowed in the waterways, which include the Indian Marais waterway, the Calcasieu Estuary, and the Calcasieu River. Due to the spill, around 150 miles of shoreline got polluted, which led to the deaths of aquatic life, fishes, and birds. Out of $19.7 million, $19.18 million will be used by state and federal trustees for the restoration project. The complaint filed by Louisiana and the United States concurrently seeks damages under the Louisiana Oil Spill Prevention and Response Act and the Oil Pollution Act. The attorney representing the Justice Department said in a statement after the verdict that oil companies are responsible to take care of aquatic life, wildlife, people, and diverse habitats. Those oil companies which violate their duties of environmental protection will be held accountable for it. CITGO, in its press release, stated that they are pleased with the settlement, especially when the major part of their fine is used for nature restoration that was harmed due to the oil spill in 2006. The petroleum company also stated that protecting natural resources is the core value of their company, and after the unfortunate incident of spill in 2006, they have made significant improvements in their plant and operational procedures to avoid this type of event from happening again.