Murphy agrees to settle Katrina spill case

Sept. 26, 2006
Murphy Oil USA Inc. has entered into a memorandum of understanding (MOU) to settle for a reported total of $330 million a class action lawsuit covering a hurricane-related oil spill at its 125,000-b/d Meraux, La., refinery.

By OGJ editors
HOUSTON, Sept. 26 -- Murphy Oil USA Inc. has entered into a memorandum of understanding (MOU) to settle for a reported total of $330 million a class action lawsuit covering a hurricane-related oil spill at its 125,000-b/d Meraux, La., refinery.

Hurricane Katrina, which made landfall on Aug. 29, 2005, dislodged a 250,000-bbl storage tank, which contained 85,000 bbl of crude at the time and spilled about 25,110 bbl. According to the US Environmental Protection Agency, the release affected about 1,800 nearby homes in a 1-sq-mile area.

Murphy signed the MOU with the Plaintiff's Steering Committee to settle consolidated class action litigation in the US District Court for the Eastern District of Louisiana.

According to news reports, the settlement total includes $80 million paid already to settle 2,700 household and business claims. The class action includes about 6,200 claims. About $160 million would be for property buyouts and payments to property owners, and $90 million would be for clean-up.