Judge James Herman fined Plains All American Pipeline
Company $3.3 million as a sentence for having caused the pipeline rupture and
attendant oil spill into the ocean off Refugio Beach in May 2015. The sentence
came in response to the felony conviction imposed by a Santa Barbara jury last
summer.
The jury found the Texas-based pipeline company responsible
for allowing the pipeline to become so corroded that it split and leaked,
fouling in the process navigable waters. Judge Herman imposed what he said was
the biggest fine the law allowed, but he expressed doubt that it was big enough
to deter the oil pipeline company in the future.
Judge Herman echoed many of the concerns expressed by
prosecuting attorney Kevin Weichbrod, who argued at some length that the
company’s history of pipeline ruptures and safety violations constituted a
pattern and practice of corporate negligence. Weichbrod had argued the judge
should fine the company $1.2 billion. Weichbrod contended the judge should
impose the maximum fine for every day Plains All American had known the
pipeline was at risk of rupture and did nothing to make the necessary repairs. Herman
stated that the indictment for which the company was convicted was for only one
day.
Beyond the fine, Weichbrod had asked the judge to place the
pipeline company on probation. Herman declined to do so, arguing that under the
law, defendants have the option to refuse probation but to serve jail time
instead. Corporations, said Herman, cannot by law be sentenced to jail time.
Under this legal logic, Herman reckoned, there was no punishment he could mete
out should the company violate the terms of its probation.
The hearing took the better part of Thursday, with Weichbrod
providing an exhaustive two-hour summary of the history of the pipeline, what
the company should have done to prevent the spill from occurring, what it
failed to do, how its containment plans did not measure up, and how their
execution of those plans failed even more.
Attorneys for Plains — and a company executive — expressed
great remorse at the loss of sea life that occurred because of the spill and
the hardship the spill caused Santa Barbara. They insisted the company is
committed to safety and environmental protection, and they disputed there was
any culture of negligence at Plains.
Three oil workers who lost their jobs as a result of the
spill — seven platforms have been shut down since 2015 — testified at the
sentencing hearing, as did representatives from the fishing industry, affected
property owners, and Linda Krop with the Environmental Defense Center. Judge
Herman noted the size of the company’s assets and expressed skepticism that the
fine will have enough impact to discourage further spills in the future.
The sentencing was imposed just two days before Santa
Barbara celebrates Earth Day. It is not, however, the last legal shoe to drop.
On July 10, Judge Herman and attorneys for both sides will deliberate over how
much the company should pay in restitution costs.