A Louisiana energy company has agreed to abide by a consent decree with the federal government and pay out $3.1 million to address alleged environmental damage resulting from a 2017 oil leak in the Gulf of Mexico.
The settlement with LLOG Exploration comes in the wake of a federal lawsuit filed in the Eastern District of Louisiana by the Department of Justice. The complaint sought compensation for the National Oceanic and Atmospheric Administration’s environmental assessment costs after the leak of 672,000 gallons of crude oil from a site off the coast of Venice, La.
LLOG admits no liability in the incident.
“While LLOG has somewhat different opinions than those drawn by the Department of Justice regarding the October 2017 incident off of coastal Louisiana, the company endorses the consent order submitted by the parties and agrees to support the mitigation plan that has been put forward as a result of the incident,” Eric Zimmermann, LLOG’s chief operating officer, told the Louisiana Record in an email.
A federal Bureau of Safety and Environmental Enforcement report released in December 2019 said the oil leak occurred about 50 miles southeast from the state’s coastline and was the result of a failed jumper device connecting an offshore wellhead to a pipeline. The company did not have sensors in place that would have alerted engineers to the leaking crude, according to the report.
The federal agency’s report also provided recommendations to improve underwater leak detections and oil flowline construction.
“As a responsible oil and gas operator with a strong record of environmental, health and safety performance, we remain committed to protecting the environment in which we operate and to abiding by all legal and regulatory obligations incumbent upon our company,” Zimmermann said.
The parties to the settlement have agreed to restore and replace the marine resources that were allegedly lost or injured as a result of the oil leak, according to the April 19 consent decree. The settlement also includes money for planning and oversight of the restoration efforts, the court document states.