BEIJING

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NTSB recommendations following oil leak off California coast

An estimated 588 barrels of oil leaked from a pipeline, resulting in approximately $160 million in damages, including clean-up costs in 2021. The NTSB recommended the U.S. Coast Guard implement a proposed change to the anchorage where the 'Beijing' and 'MSC Danit' were located when they began dragging their anchors, which would move the boundary of the anchorage farther away from the pipeline. The NTSB also recommended the Coast Guard develop and implement audible and visual alarms for Vessel Traffic Services, or VTS, watchstanders when an anchored vessel is encroaching on a pipeline, and to develop procedures for VTS to notify pipeline and utility operators following potential incursions on submerged pipelines and utilities. VTS provides active monitoring and navigation advice for vessels in confined and busy waterways. NTSB investigators identified instances where this leak could have been avoided or mitigated, including making the pipeline operators aware of potential anchor dragging so damage could be identified and repaired before an oil release. Investigators also found that the controllers were not adequately trained to handle abnormal operating conditions, which delayed shutting down and isolating the pipeline. It took eight total leak alarms before controllers shut down and isolated the line. Had the San Pedro Bay Pipeline controllers responded in accordance with company procedures and shut down and isolated the line at the first alarm, it would have significantly reduced the volume of crude oil released and the resulting environmental damage. The NTSB found insufficient training of the pipeline controllers contributed to the 14-hour delay in stopping the pipeline’s shipping pumps, which consequently increased the volume of crude oil released. The NTSB also issued recommendations to the Pipeline and Hazardous Materials Safety Administration (PHMSA), the Marine Exchange of Southern California, and owners and operators of pipelines regulated by PHMSA. The final report will be published on the NTSB’s website in several weeks. The pocket docket for the investigation includes more than 4,000 pages of factual information such as reports, interview transcripts and other investigative materials.

MSC and Costamare signed settlment agreement

The MSC Mediterranean Shipping Company and Costamare have signed a settlement agreement with the subrogated insurers of the Amplify Energy Corp., bringing to a close a dispute over a damaged pipe that led to an oil spill off the coast of California. Both companies have agreed to pay a combined $45 million in damages for the 558 barrel oil spill, but continue to deny any culpability for the spill. ?The settlement amount will be jointly funded by MSC and Costamare without admission of responsibility or liability for the environmental damage that took place due to Amplify's negligent management of their underwater pipeline- MSC agreed to the settlement to move forward productively, and it hoped this regrettable incident will encourage Amplify to recognize its responsibility as a marine operator in the waters of California. The 'MSC Danit' and Costamare's 'Beijing' have been accused of damaging the oil pipeline when they dragged their anchors across it during a storm in January 2021, about nine months before the oil spill. MSC maintained that Amplify was solely responsible for events that led up to the oil spill and that their actions further worsened the pollution substantially. Amplify agreed in August 2022, to plead guilty to United States federal criminal negligence charges and pay $13 million in penalties and fines. A month later the energy company agreed to plead no contest to six criminal charges brought against it by the State of California and pay nearly $5 million in penalties and fines. Orange County district attorney, said that Amplify had repeatedly turned off and on the 17-mile-long pipeline when it was alerted to the leak. These actions led to a preventable pollution event.

MSC entered into settlement agreement following oil spill

The MSC Mediterranean Shipping Company has accepted to enter into another settlement agreement with the Amplify Energy Corporation and its affiliated entities in connection with the Orange County pipeline oil spill in 2021. The agreement to enter into a settlement with Amplify and the other parties is made without an admission of liability but is intended to move yet another step past the incident, the company noted. MSC has been identified as the party of interest in the local investigation after the 'MSC Danit' dragged anchor near the underwater pipeline. Also the 'COSCO Beijing', operated by Costamare Shipping Co, was also identified as dragging anchor in the area at the time, during severe weather. Amplify, owner of the pipeline, sued the two containership operators and Marine Exchange of Southern California, claiming it failed to direct the ships to deeper waters and failed to inform Amplify of the anchor-dragging incidents. The oil spill resulted in the discharge of approximately 25,000 gallons of crude oil in Oct 2021 during an offshore leak in the 17-mile-long San Pedro Bay Pipeline. The pipeline is linked to the Elly drilling platform off the coast to Long Beach Harbour. However, MSC claims that maritime experts have thoroughly investigated and reconstructed the events that led up to the oil spill. The company noted that the 'MSC Danit' was communicating with the United States Coastguard and authorities in the Port of Los Angeles/Long Beach on the date when claimants allege the pipeline was first damaged, some nine months prior to the oil spill.