A California grand jury indicted Plains All American Pipeline LP and one of its workers on criminal charges stemming from a May 2015 oil spill near Santa Barbara that released nearly 3,000 barrels of crude onto a beach and into the Pacific Ocean, the company said Tuesday.
The company was indicted on 46 criminal charges, including four felonies, according to state and county officials. Plains was charged with felony violations regarding hazardous releases into state waters and with misdemeanor violations relating to how the spill was reported.
Three dozen of the charges against the Houston-based pipeline giant are related to the oil spill's impact on wildlife. Plains faces as much as $ 2.8 million in fines, officials said.
James Buchanan, an employee of Plains, was indicted on three criminal charges for failing to provide timely notice of the spill. Mr. Buchanan declined to comment.
"This conduct is criminal and today's charges serve as a powerful reminder of the consequences that flow from jeopardizing the well-being of our ecosystems and public health," California Attorney General Kamala Harris, who also is running for the U.S. Senate, said in a statement.
Plains said in a news release Tuesday that it is deeply disappointed by California officials's decision to pursue criminal charges.
"Neither the company nor any of its employees engaged in any criminal behavior at any time in connection with this accident," the company said. "We will vigorously defend ourselves against these charges and are confident we will demonstrate that the charges have no merit."
The pipeline that Plains operates was built to carry up to 150,000 barrels a day of crude on a route that hugs the coast near scenic Highway 101. The pipeline broke open near Santa Barbara, fouling a state beach and creating a miles-long slick in the ocean.
Plains said in a securities filing earlier this month that its worst-case estimate for the spill is that more than 123,000 gallons of crude, or roughly 3,000 barrels of oil, were released on land and in the water.
Pipeline corrosion caused the break and Plains's inspection tools didn’t accurately assess maintenance problems on the pipe, according to a preliminary report from federal pipeline regulators released in February.
The pipeline was inspected a few weeks before the spill, but the resulting data had not been analyzed by the time the pipeline broke.
Regulators ordered Plains to shut down the broken line and another pipe they said was susceptible to the same type of issues. Neither line has been restarted.
The U.S. Department of Justice has also opened an investigation into whether Plains broke any federal laws, including potential violations of the Clean Water Act.
The company has said it is cooperating with the DOJ's investigation. The Justice Department declined to comment.
Plains estimates that it will ultimately pay $ 269 million to resolve the incident, including the cost of the emergency response and cleanup, claim settlements, and fines and legal penalties.
—Tess Stynes contributed to this article.
Write to Alison Sider at alison.sider@wsj.com
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