Environmental effect found in Santa Barbara harbor by wildlife operations crews on May 21, 2015 The spill was much smaller than the nearby
1969 Santa Barbara oil spill on January 28, 1969 in which an oil rig
blow-out spilled an estimated of
crude oil over a ten-day period. The thick crude oil damaged the
coats, skin,
beaks, and
appendages of hundreds of animals. The full impact will never be known since animals may travel a distance before succumbing to their injuries. Sixty-five live
birds and sixty-three live
mammals were rescued. Of the 69 animals freed after being cleaned and nursed back to health, The spill cleanup occurred during the nesting season for
snowy plovers, so special precautions were necessary while cleaning up tar balls. The birds are often found on the beaches along the coast of the Oxnard plain. Their nests are hard to see in the open sand and the birds are easily frightened away by human activity leaving the eggs to fast-moving predators such as
sea gulls.
Least terns were another
endangered species of bird that was a concern during the cleanup efforts. Marine researchers note that mammals and birds get the most attention but smaller creatures at the base of the ocean
food chain are also harmed by the oil. Life on the sea floor and near the shore such as
mussels,
barnacles, and other
shellfish are unable to move out of the way. When exposed to oil, these organisms suffer 90%-plus mortality and recovery of the population can take decades. following the Refugio spill, June 18, 2015 Researchers from the University of California, Santa Barbara began collecting samples within hours of the spill to monitor the impact on the
marine environment. Researchers and volunteers returned to the area many times to collect additional samples. Since students and researchers had previously used this area for study purposes, baseline data was available.
David Valentine, a professor in the university's Department of Earth Science said, “The discharge of heavy oil at Refugio presents a unique opportunity to discover novel
metabolic,
genomic and
ecological feedbacks among
marine microbial communities, heavy oil and ecosystem response. We have the opportunity to study ecosystem changes and microbial reactions from the very early stages through an entire year. It’s really rare for scientists to get day zero access to any sort of event like this.”
Economic impact Plains All American Pipeline estimated that the cleanup had cost $96 million during a joint oversight hearing of the
State Assembly Natural Resources Committee and
Senate Select Committee on June 26, 2015. Overall expenses related to the spill were estimated to be $257 million in an
earnings report for Plains All American Pipeline issued around the same time. This included the emergency response and cleanup efforts along with the expected legal claims and potential settlements. The CEO stated in the report that all but $65 million would be covered by insurance and that the figure did not include lost revenue from the pipelines that have been shut down. The economic consequences for the county were more difficult to quantify. The financial impact on the county was estimated by the California Economic Forecast Director at $74 million if Line 901 remains dormant for three years because of the dependence of the region's oil and gas industry to move product through this line. Workers' income, property taxes, and federal royalties are reduced while the line is out of service. Refugio State Beach was more heavily damaged and did not reopen until July 17, 2015. These two popular parks quickly filled up with summer crowds when they reopened. Eric Hjelstrom,
California State Parks sector superintendent said, “We were booked full the day we opened. Half of the people didn’t know we had been closed, which is a good testament to how clean the park was.”
Litigation toured the clean-up efforts at Refugio State Beach and surrounding areas, June 4, 2015 Almost a year after the spill, the Santa Barbara County Grand Jury handed down 46 criminal indictments against Plains. The Santa Barbara County District Attorney also announced a misdemeanor count against one of the company's employees. California state Attorney General
Kamala Harris, who had also opened a criminal investigation right after spill, said this prosecution will send a message to Plains and to the oil and gas industry in California. The profound economic impacts on local fishermen, who couldn't fish during the fishery closures, led to the filing of several lawsuits. Plains All American Pipeline was ordered in March 2016 to stop misleading claimants who sought interim damages. A U.S. District Court issued an order that stated that Plains was misleading "victims towards unwittingly waiving their rights to full recovery" through the class-action lawsuit where they could obtain further compensation. The
city of Santa Barbara filed a lawsuit in May 2016 seeking $2.1 million in compensation from Plains. The media coverage of the spill had created the perception that the oil spill was in the city of Santa Barbara rather than away in Santa Barbara County according to the city officials. This discouraged visitors during the peak tourism season, losing the city millions of dollars in tax revenue. The federal Pipeline and Hazardous Materials Safety Administration was requested to provide all records regarding the internal inspection of Line 901 conducted in 2012 and details of all other inspections since 2013 such as maintenance data, monitoring information, incident reports and repair logs. The Environmental Defense Center of Santa Barbara (EDC), who had requested the release of the records along with the Santa Barbara Channelkeepers, filed a lawsuit against the agency in December 2015 since it had been over six months and they had not received any of the requested documents. After a jury found that their negligent practices contributed to the spill, Plains agreed in March 2020 to pay $60 million for penalties and damages. While admitting no guilt for their role leading up to the spill, the settlement by the Plains All American Pipeline Company included a consent decree with a multitude of federal regulatory and environmental agencies which includes various conditions.
Oil and gas industry The estimate of $74 million financial impact over three years to the county includes approximately $37 million in lost property taxes, $32 million in lessened worker income and $5 million in reduced federal royalties. With the bankruptcy of Veneco, the state is looking at spending $58 million to begin dismantling Platform Holly. Truck transport of continuing production from the offshore platforms was not allowed by local agencies. Exceptions have been closely scrutinized by local officials such as allowing Venoco in August 2015 to transport crude oil that was already onshore by truck for a limited period. The oil had been evacuated from tanks and pipelines to allow maintenance of the onshore Ellwood facility in Goleta that serves Platform Holly. On August 15, 2017, Plains submitted an application to the Energy and Minerals Division of Santa Barbara County Planning and Development for the replacement of Lines 901 and 903. The replacement pipeline would restore crude oil pipeline transportation service in Santa Barbara, San Luis Obispo and Kern Counties as the old pipelines can not be used. ExxonMobil finished the
environmental impact report in 2020 of a plan to truck oil.
Phillips 66 Santa Barbara County refinery was the primary destination for the trucked oil but after the release of the report it was announced that it would be closing. The Planning Commission of Santa Barbara County rejected the proposal for 78 additional truck trips a day over the steep, narrow, and winding
Highway 166 to the Pentland processing plant in the
San Joaquin Valley.
Legislation Three bills were signed into law in response to the spill. Under a new law, the California Fire Marshal will be required to review the oil pipelines conditions every year while federal regulations only mandate a review every five years. Another new law provides for making oil spill response times faster and more effective. Finally, a new law will force intrastate pipelines to use the best-known technology such as automatic shut-off valves. Another bill was signed into law in 2020 by Governor
Gavin Newsom that increased the state’s oil spill penalties for the first time in 30 years.
Regulations The Pipeline Hazardous Material Safety Administration (PHMSA) is responsible for developing and enforcing regulations for pipeline operation transportation having been created in 2004 within the
United States Department of Transportation. In the months following the spill, they found that the in-line inspection tool used by Plains in Line 901 and Line 903 had miscalculated the degree of corrosion. The company also withheld in-line inspection data so “it could enhance its interpretation of the data,” according to a corrective order issued by PHMSA. In October, PHMSA proposed new rules to assist in preventing such inspection discrepancies. == Restarting the pipeline ==