Amplify to enter No Contest plea to resolve state matters in 2021 oil pipeline incident

Amplify Energy Corp. reached an agreement with the State of California to resolve all criminal matters involving the company and its subsidiaries stemming from the October 2021 Southern California pipeline incident.

As part of the resolution with the State of California, Amplify has agreed to enter a plea of No Contest to six misdemeanor charges. If approved by the court, Amplify will pay a fine of $4.9 million to be distributed among the State of California, including the State’s Fish and Game Preservation Fund, and Orange County. The company also will serve a 1-year term of probation and has agreed to certain compliance enhancements to its operations.

This resolution, along with the plea agreement regarding federal criminal matters reported in August, if approved by both courts, will resolve all criminal matters stemming from an oil spill off the coast of Huntington Beach, Calif. San Pedro Bay pipeline, owned by Amplify Energy subsidiary Beta Offshore Operating Co. LLC, was reportedly struck and broken by anchors from two third-party shipping companies, leading to the spill, the company said (OGJ Online, Aug. 30, 2022; Oct. 4, 2021).

Martyn Willsher, Amplify’s president and chief executive officer, said the company “worked diligently to support the successful clean-up and remediation efforts, including deploying upwards of 1,800 oil spill response contractors, have paid covered claims as expeditiously as possible, and continue to work cooperatively with the various state and federal agencies investigating these matters.”