MSC announced its intention to enter into a settlement agreement with Amplify Energy Corp. and its affiliated entities along with the Marine Exchange and the owners, operators and charterers of one other vessel in connection with the 2021 Orange County pipeline oil spill.
However, MSC noted that this decision is made “without an admission of liability”.
“Despite its agreement to enter into the settlement, MSC nonetheless maintains that the responsibility for the October 2021 oil spill lies with Amplify, which pled guilty to criminal negligence for its role and ensuing damages stemming from the oil spill,” stated the Swiss/Italian shipping company.
MSC added it will continue to demonstrate in the remaining legal proceedings with Amplify’s insurers that its ship was not responsible for the October 2021 oil spill, that its vessel maneuvered correctly, and that the ultimate responsibility lies with Amplify.
“Despite becoming aware of increased marine traffic and associated risks in 2020, Amplify took insufficient measures to protect the pipeline which was under its management and control and greatly exacerbated the situation by failing to properly respond to eight separate leak detection alarms on the day of the rupture, thus spreading the environmental pollution by magnitudes,” said MSC in a statement.
Additionally, the ocean carrier mentioned that maritime experts have concluded that the MSC Danit was not responsible for the oil spill, that the boxhsip maneuvered safely, and that Amplify failed to properly maintain and inspect the pipeline.
MSC agrees to jointly fund settlement related to 2021 Orange County pipeline oil spill
“The provisions of the settlement agreement which have not yet been finalised will include recognition that MSC and other parties have not admitted to any liability, preserving their rights to defend the case against Amplify’s insurers, and will require all participating parties to withdraw pending appeals, requests, and motions before the courts.” noted MSC’s statement.
“It will further mandate that both Amplify and MSC release all claims of any kind prior to the agreement of settlement in relation to issues arising from the 2021 Orange County Oil Spill,” it pointed out.
