Taylor Energy to Pay $43M for Longest U.S. Oil Spill


WASHINGTON — The Department of Justice announced Wednesday that Louisiana-based Taylor Energy’s will pay $43 million Fines and compensation for the longest-running spill in U.S. history for an oil spill in the Gulf of Mexico since 2004.

As part of the deal, Taylor Energy will transfer control of the remaining $432 million in a trust fund dedicated to cleaning up the spill to the Home Office.

The spill, located about 10 miles off the coast of Louisiana, began 17 years ago when an offshore oil rig owned by Taylor Energy sank in a mudslide triggered by Hurricane Ivan and drilled a series of submarine wells. Oil and gas have been leaking from the area since then.

Taylor Energy, which sold its oil assets and stopped production in 2008, has long debated both the extent of the spill and the extent of its responsibility for cleanup efforts. Wednesday’s agreement marked the end of the years-long legal battle against the leak. The Justice Department said the $43 million the company will pay represents all of its remaining current assets.

“Offshore operators cannot allow oil to spill into our country’s waters,” said Todd Kim, Deputy Attorney General of the Department of Environment and Natural Resources, Department of Justice. “If an oil spill occurs, the responsible party must cooperate with the government to resolve the problem in a timely manner and pay for cleanup. Accounting for offshore operators is vital to protecting our environment and ensuring a level industry playing field.”

Taylor Energy set up a $666 million fund to clean up the spill in 2008 and spent about a third of the money closing nine of the 25 wells damaged during the hurricane. However, after doing this, the company did not pay for the remaining 16 wells. it was too risky to handle because they were buried under so much mud and debris and they sued the Home Office to release the balance of their funds, and they failed.

In 2018, after new federal estimates suggested that 29,000 gallons of oil a day were still gushing out of the field, the Coast Guard Ordered Taylor Energy to stop the leak or face high fines. When the company refused, the Coast Guard hired an outside contractor. build a containment system It is now believed to have caught the majority of the leaking oil, and sent Taylor Energy a bill of $43 million last year to cover a year’s worth of removal costs.

Taylor Energy pushed back. Company alleged oil into the Gulf of Mexico, where very little oil is still leaking from the wells, oil flares observed in the area are caused by oiled sediments around the platform rather than the wells, and further troubling the area, there is a risk of even more oil being released. Taylor Energy He also challenged The Coast Guard’s containment efforts in federal court suggested that the company should not be held liable for the costs.

The settlement requires Taylor Energy to dismiss its three ongoing lawsuits against the federal government. After the deal is approved by the court, the company will be liquidated and the remaining assets will be transferred to the federal government. The company was also ordered not to interfere with the Coast Guard’s efforts to contain or extract oil from the spill area.

Taylor Energy did not immediately respond to a request for comment.



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