Amplify Energy faces possible class action lawsuit after southern California oil spill

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The lawsuit against Amplify Energy and its subsidiary Beta Operating Company, which operates the pipeline, said plaintiff Peter Moses Gutierrez Jr., whose company regularly hosts events along Huntington Beach, will lose business for the foreseeable future. He also alleged that Gutierrez, who is a local resident, has been or will be exposed to toxins as a result of the spill.

The lawsuit, which seeks class action status, alleges that the vast coastline affected by the spill suffered “enormous damage” and that residents and animals suffered “catastrophic” consequences.

On Monday, Governor Gavin Newsom declared a state of emergency due to the oil spill. “The state is preparing to cut red tape and mobilize all available resources to protect public health and the environment,” he said in a statement.

The breach occurred about five miles off Huntington Beach and spilled up to 144,000 gallons of oil, officials said.

According to documents reviewed by CNN, authorities were told on Friday evening of reports of an oil burst at the site of the pipeline spill, more than 12 hours before Amplify reported it to state and federal authorities. .

But in an interview with CNN on Monday, Amplify CEO Martyn Willsher said a shard was detected by company staff on Saturday morning, not Friday night. Willsher said there was equipment to detect the leak without visibly seeing the oil spills, but there had been no notice of a potential leak in the pipeline until Saturday.

The lawsuit also named 100 anonymous “subsidiaries and / or affiliates” of Amplify who “may be responsible for the conduct” alleged in the lawsuit.

CNN has reached out to Amplify Energy and Beta Operating for comment.

Amplify is a Houston-based company with 222 employees at the end of 2018, the last time it reported the size of its staff in a business case. Its most recent financial report shows sales of $ 153 million, with cumulative losses of $ 54.4 million through the end of June.

Complaint seeks trust fund to monitor individuals’ health

There are potentially thousands of class members who could be named in the case, according to the complaint filed by attorneys for Milberg Coleman Bryson Phillips Gross.

The lawsuit alleged that the companies were negligent and “failed to properly operate the oil rig, resulting in a catastrophic oil spill” and “failed to ensure that the oil rig could operate safely, when in reality it was not. “

The cause of the leak is not yet known. The Federal Office for Security and Law Enforcement on the Environment and National Transport Safety Office were helping the investigation.

According to the complaint, the effects of the spill in the surrounding area were “swift and drastic”, covering approximately 8,320 acres and tarnishing a 25-acre ecological reserve. In response, the plaintiff seeks pecuniary and punitive damages, an injunction and response costs.

The lawsuit says the court should create a trust fund for the medical follow-up of people who have been exposed to potentially dangerous substances and who may now be at increased risk of contracting diseases.

The plaintiff further asserted that the business conduct “fell below the standard of care” of a reasonable owner or operator. The company also failed to notify the public in a timely manner of the dangerous spill and its potential impact, according to the complaint.

What we know so far about the California oil spill

The complaint contains allegations of damage including, but not limited to, damage to personal property, damage to personal health, damage to animals and livestock and downsizing. The complaint alleged that the group members suffered from releases of hazardous substances from Amplify Energy’s oil platform, including the removal of sulfur dioxide, hydrogen sulfide, volatile organic compounds and petroleum, among other dangerous substances.

As of Monday afternoon, approximately 4,158 gallons of oil were recovered from the water, the Southern California Unified Spill Response Team said in a press release. The California Department of Fish and Wildlife said 14 boats were conducting oil recovery operations.



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