The U.S. Department of Justice announces that Louisiana oil and gas company, Taylor Energy Company LLC, agrees to turn over all its remaining assets to the United States to resolve its liability for an oil spill at its former Gulf of Mexico offshore oil production facility.
The facility has been the source of the longest-running oil spill in U.S. history, which has been ongoing since 2004 after the oil production platform located in the Gulf of Mexico about 10 miles off the coast of Louisiana, collapsed during Hurricane Ivan. It was leaking oil until it was capped in 2019.
A statement from the Department of Justice says under the proposed consent decree, Taylor Energy will transfer to the Department of the Interior, a $432 million trust fund dedicated to plugging the subsea oil wells, permanently decommissioning the facility, and remediating contaminated soil.
The consent decree also requires Taylor Energy to pay over $43 million for civil penalties, removal costs and natural resource damages resulting from the oil spill.
“Offshore operators cannot allow oil to spill into our nation’s waters,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “If an oil spill occurs, the responsible party must cooperate with the government to timely address the problem and pay for the cleanup. Holding offshore operators to account is vital to protecting our environment and ensuring a level industry playing field.”
“Despite being a catalyst for beneficial environmental technological innovation, the damage to our ecosystem caused by this 17-year-old oil spill is unacceptable,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The federal government will hold accountable businesses that violate our Nation’s environmental laws and ensure that any oil and gas company operating within our District meets their professional and legal responsibilities.”
