Amplify Energy Corp., Houston, reached an agreement with the  US government to resolve all federal criminal matters involving the company and  its subsidiaries stemming from the October 2021 Southern California pipeline incident (OGJ  Online, Oct. 4, 2021). 
A broken pipeline off the coast of Huntington Beach, Calif.,  caused an oil spill, according to city officials at the time. Amplify Energy subsidiary  Beta Offshore Operating Co. LLC notified the US Coast Guard of the oil sheen on  Oct. 2. Beta’s holdings include San Pedro Bay Pipeline Co., which owns and  operates a 16-in. OD subsea pipeline extending 17.5 miles from one of its  platforms to an onshore pump station, metering, and tankage at the Port of Long  Beach.
As part of the resolution, which is subject to court review  and approval, Amplify agreed to plead guilty to one count of misdemeanor  negligent discharge of oil in violation of the Clean Water Act. If approved by  the court, Amplify will pay a fine of about $7.1 million over a period of 3 years,  serve a term of 4 years' probation, and reimburse governmental agencies about $5.8  million for their response to the incident. 
Amplify also agreed to implement compliance  measures including installation of a new leak detection system and increased remote  operated vehicle inspections of the pipeline.
Separately, the company noted an agreement in principle reached  with plaintiffs in a class action to resolve all civil claims against Amplify  and its subsidiaries. The settlement, the value of which was not disclosed, will  be funded under the company’s insurance policies if approved by the court.
In February, Amplify filed a complaint against two shipping companies  whose anchors struck the San Pedro Bay pipeline, damaging it and causing the oil  release, the company said. Claims were also filed against the Marine Exhange of  Southern California, which failed to notify Amplify of the anchor strikes, the  company said in March. 
Cleanup operations in all impacted counties were concluded in  late December 2021.