Taylor Energy and the Department of the Interior have reached a settlement, agreeing to turn over more than $400 million to plug the Gulf of Mexico oil spill.
A release from the U.S. Department of Justice in December stated the agreement stems from a complaint the U.S. filed against Taylor Energy in 2020. The complaint, which was filed in civil court, sought removal costs, civil penalties and natural resources damages under the Oil Pollution and Clean Water acts for the discharge of oil from the company’s former oil production facility.
“We are proud of and grateful to the outstanding interagency team of technical and legal experts from the Departments of the Interior and Justice, the U.S. Coast Guard and other agencies who have worked tirelessly for more than a decade to mitigate environmental impacts to the Gulf of Mexico ecosystem, hold the company accountable, and protect the American taxpayer,” Deputy Secretary of the Interior Tommy Beaudreau said in the release.
The settlement will provide financial resources for the Bureau of Safety and Environmental Enforcement, Bureau of Ocean Energy Management, National Oceanic and Atmospheric Administration and the Coast Guard to permanently secure the well, protect marine environment and preserve resources, the release stated.
“For the last three years, the Coast Guard, along with our federal partners, have committed to the challenging mission of containing and removing more than 800,000 gallons of oil discharging into the Gulf of Mexico,” Capt. Will Watson, sector commander of the Coast Guard New Orleans said in the release.
In a December release by EarthJustice, Senior Attorney Chris Eaton applauded the Coast Guard and DOI for holding the polluting industry accountable.
“We are pleased that the Department of the Interior will now be able to move forward with finally plugging this long-running oil spill," Eaton said. "The Taylor spill is another example of the disastrous impact of offshore drilling on the Gulf’s ecosystem and wildlife.”
According to a report by E&E News, the Taylor Energy spill began with an underwater mudslide in 2004 when the Saratoga production platform and oil wells were destroyed during Hurricane Ivan, which went unnoticed for years.
As a result of the settlement, Taylor Energy will transfer a $432 million trust fund to the DOI and pay more than $43 million in civil penalties and associated costs, Reuters reported.
