Shell Could Pay Nearly $4 Million for Louisiana Oil Spill (1)

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By Sylvia Carignan

Shell could be responsible for nearly $4 million in damages as a result of a 2016 crude oil spill in the Gulf of Mexico, according to a proposed settlement.

The proposed settlement, announced July 11, alleges Shell Offshore Inc. is liable for $3.9 million in natural resource restoration and assessment costs under federal and Louisiana state law. The company is a subsidiary of Shell Petroleum Inc. and Royal Dutch Shell PLC.

Crude oil spilled from Shell’s Green Canyon Block 248 subsea oil production system in the Gulf of Mexico starting on or about May 11, 2016, according to state and federal agencies involved in the settlement. More than 1,900 barrels, or nearly 81,000 gallons, of oil were released, according to the National Oceanic and Atmospheric Administration

The proposed settlement will be available for public comment once it is published July 12 in the Federal Register.

“We welcome the conclusion of this process and we deeply regret the incident. No hydrocarbon release is ever acceptable to us,” Kimberly Windon, a spokeswoman for Shell, told Bloomberg Environment in an email. “Since the event, Shell has taken steps to improve the safety of our operations following multiple reviews.”

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